IMPORTANT NEGOTIATIONS IN OIL

Shannon News, 11 April 1928, Page 4

IMPORTANT NEGOTIATIONS IN OIL

The National Petroleum News reports important negotiations in oil; company mergers. The most important of these is the acquisition of th|e Californian Petroleum; Corporation by. the Texas* Corporation. Consolidation of the two will give the. Texas Corporation crude reserves; anjd additional refining' capacity with a source of supply for its north-west-ern domestic markets, and an outlet to«the Oriental export markets. More directly it means facilitated distribution for New Zealand and Australian markets. This merger will result in the formation of a giant corporation. Already the Texas Corporation markets gasoline over a w’ider territory, than any other petroleum organisation in the United States. The combined capacity of its various refineriesis around 125,000 barrels daily* Its average crude charges a day in 1926 was approximately 100,000 barrels and' the year amounted; to 21,567;562. The Texas Corporation, held an area of oil' and gas lands and reserves totalling 2,254,569 acres in America, 8649 in

Mexico, and 106,367 in Venezuela. The California Petroleum’s output was rated at 55,000 barrels.. So in thei one organisation are held properties valued at close to £.110,000,000. It was believed in New York banking circles that the * Texas Corporation would pay one share of its stock for each twof outstanding shares, of California Petroleum. This would, requite about ljOOO.OOOsshares of Texas stock, an amount that has been authorised under the 1926 reorganisation; of the corporation, but has not yet been issued. The Texas Corporation has lately been, silling around 54 and California Petroleum around 24.