SOUTH PACIFIC PETROLEUM COMPANY.

Poverty Bay Standard, Volume IX, Issue 998, 12 November 1881, Page 2

SOUTH PACIFIC PETROLEUM COMPANY.

The following communication has been received by Mr. Tucker, and is published for the general information of shareholders :— 34, Clarence-street, Sydney, Oct. 24th, 1881. Mr. W. H. Tucker, Esq., Gisborne. Dear Sir, —A meeting of the new Board of Directors was held on the 21st instant, and after discussing the present situation fully, it was decided that the works at the oil springs should be suspended for the present. First, as regards boring, as the present tools and tubing available are quite inadequate to the work, and it will be necessary to get a quantity of strong drive pipe from America, together with a suitable set of tools, and until these arrive, it will be mere waste of money to continue the work. A suggestion from the foreman, Mr. J. Wright, to use wood casing for the first 100 feet or so is favourably thought of; but it is considered that it would be no use commencing this work until the drive pipe is on the ground, ready to continue with as soon as the wood casing cannot be driven any further.

As regards the paraffin deposits the result of the trials of the last sample sent leads us to think that the bulk of the stuff is not of much value. In the first sample received the proportion of the paraffin and oils was 30 per cent, of the whole mass ; but in the last lot, the paraffin, &c., is in so small a proportion that it would not be worth working. The great part seems to be the stuff which Dr. Hector calls dopplerite. The Directors, therefore, do not feel justified in expending any more money in opening out the paraffin earth deposits until the value is more accurately ascertained. In the meanwhile, however, they have decided to entertain offers from parties willing to make trial of the deposits, and advertisements to that effect are to be inserted in the newspapers in Gisborne, Sydney, and Melbourne. The shareholders here have every confidence in the enterprise, at least as far as the oil is concerned, and are rapidly paying up the call of sixpence per share, so that we may be able to order the drive pipe and tools as soon as possible. I have written to Mr. Wright, to’ get his opinion as to what extra tools will be required, and as soon as we hear from him the order will go forward. In the meantime Mr. Berry has orders to stop the works, and discharge the men, all except a caretaker. The appointment of the Committee of Advice will be deferred for the present, until the new operations are in a fair way of being commenced. The Board requests that you will kindly communicate the above to the New Zealand shareholders. Your obedient servant, H. E. Jopling, Secretary.