SEARCH FOR OIL

Rotorua Morning Post, Volume 2, Issue 299, 12 August 1932, Page 3

SEARCH FOR OIL

TARANAKI FIELD YACUUM COMPANY JOINS NEW ZEALAND GROUP. DETAILS OF AGREEMENT. WELLINGTON, Wednesday. Details of the agreeinent recently l made between the Vacuum Oil Company Propi'ietary, Ltd., and Taranaki (N.Z.) Oil Fields (No Liability) have been announced. On June 24 it was stated that, as a result of prolonged megotiations, an agreement ha.d been arrived at under which the Vacuum Company would associate itself with the Taranaki organisation with the object of further testing and devsloping the extensive landed coheessions of the latter concern and its subsidiaries on the East Coast of the North Island. Details made available yesterday show that the Vacuum Company is to carry out, at its cost and with all reasonable dispatch, a gaological examination of the properties of the Taranaki group. Two experienced geologists will arrve in New Zealand for this purpose during August. Vacuum Company is to make a quarterly cash payment to Taranaki until the end of 1934, unless it hes abandoned its interest beforehand. Vacuum will also reimburse Taranaki for leas'e rentals. Before the end of August, 1934, the Vacuum Company will give notice whether or not it intends to drill. If the former, it will be bound to commence drilling on at least one location by tho end of the same year, or, in default, pay a substantial cash sum — and in the last-mentionsd contingency it will remain bound to commence drilling by the end of 1935. System of Selection. Upon the Vacuum Company giving notice of its intention to drill, it will select for itself two of the Taranaki group's 39 geological "struetures" included in the schedules to the agreement, and the remaining 37 "struetures," one at a tims, v/ill then be chosen by the parties, turn ahout; Taranaki to have the first selection. Provisions are included in the agreement for, inter alia. — Intwchange of geological data between the Vacuum and Taranaki Companies; continuance of geological reconnaissarice by either party; the purchase of production from Taranaki proporties by the Vacuum Company; the reversion to the Taranaki Company of oil rights which the Vacuum Company may decide not to retain. Mr. C. N. Taylor, managing director of Moturoa Oilfields, Ltd., announced yesterday that the board of the company has been strengthened by the addition of Messrs. Henry Hart, of Messrs. Simpson and Hart, of Lawrence and Dunedin; Charles E. Richardson, of Richardson and McCabe, Wellington and Auckland; and James W. G. Brodie, of the British and Dominion Traders, Ltd., Wellington. Steps are now heing taken by the Moturoa Company for drilling their No. 2 well some 800 feet distant from their No. 2 well at New Plymouth. This well, Mr. Taylor stated, has produced some 600,500 barrels of crude oil since it was drilled about a year ago. It is confidently anticipated, Mr. Taylor said, that as good a fTow will he ohtainad in the No. 3 well, which will take ahout six months ' to drill.