AFTER OIL

Hokitika Guardian, 2 December 1930, Page 7

AFTER OIL

COMPANY FORMED. FAVOURABLE EXPERT REPORTS. INVERCARGILL, November 28. As the result ot' oifieial geological reports confirm.ng the belief that petroleum exists in considerable quantities m Southland .a company has been for men io operate in an area between Ivnupa and Menmore fa lew miles north of IVin,ton) with the object of securing oil in bulk. r ihe project is creating much interest in Southland, and Mr 11. N. McLeod, a director of the company and a techn.cal expert, has expressed hmseiif as confident o, a successful outcome.

This confidence he bases on a thorough analysis of the favourable general geology of Southland for the formation and conservation of petroleum which is similar to the well-known oilfields of the world, on the reports ol the geologists, Professor Park, cl Dunedin, and Professor Speight, of Christchurch on the specific geology of the area, which indicates a probable underground petroleum catchment, on the result of surface bores (such as are allowed by Government regulation), on the extraction of petroleum by solvents from the contents of thebe bol'es, and on gas emanations and sk ns Of filtrated oil. In addition to these there were several more favourable conditions pressent, which all afforded excellent grounds for anticipating a successful result. In addition it might be mentioned that the company’s area had recently been favoured with a visit from oil locaters, who had examined it on their own request. They were positive after several days’ investigation, that an extensive and deep body of oil-sand provided what might be termed not only a “pool,” but a “lake.” BEST AREA SELECTED. After visiting all the oilfield areas in New Zealand, and travelling some 10,000 miles, the area north of Kaupa was Selected by Mr McLeod, being by comparison considered the. best. Detailed geological investigation strengthened this conclusion. The rights were then secured, and it was decided to secure all the available knowledge an experience from Taranaki, which had been accumulated as the result of two years of general and practical ins'ght into oil operations there, such as oil prospecting, oil-well development and management, and. the details of successful production. Steps,were then taken to have the area developed locally. Very successful results were obtained from the surface bores. From the green sand found in these bores extraction by solvent. shows the existence of petroleum indications superior to those which have been obtained anywhere else at the 'depth. Gaa emanates ifrom the area to be bored, flaming on the application of a light, and the skins of oil forming were similar to those which form on the water coming from the oil wells in Taranaki.

OIL EXPECTED AT 1500 FEET. The depth at which the main oil;was l expected to he met with was about 1500 feet, as compared with a much deeper source in the New Plymouth field, where, however, there is now a production from a higher seepage horizon of about 2300 ifeet. The quantity of oil is expected to be large, as the coai and oil measures here contain a much larger amount of carbonaceous material .than in many other fields Reliable estimates indicate that petrol can he extracted from 8000 gallons of crude oil daily by a “topping” plant costing only £250. Upon several wells turning out a sufficient supply the erection of a refinery could ithen he considered.

Mr McLeod was of opinion that a .successful result could be expected from the company’s operations, and the ■facts which would br'ng immediate and important benefits to Southland.