PETROLEUM.

Taranaki Daily News, Volume XLVII, Issue 8103, 7 May 1906, Page 2

PETROLEUM.

INCREASED PBESSUKE OF OIL: A RISING SHAKE MARKET. There was a large number of visitors at the Moturoa Petroleum Works on Sunday, all on the qui vivo for information, or, us one of them put it, wishing to see the wonders which they had heard so much about, Mr Fair aud Mr O'f-owcla were both on the scene, watching the course of events—as it happened, a wise precaution. On his return from Wellington on S.iturday night, Mr Fair was informed by his stall that the pressure of oil was slill on the increase, but ho was scarcely prepared for the demonstration of tlio powers of pent-up naturo that greeted him on his curly morning visit to the works. He found that the oil had forced a passage and escaped in large quantities on to the iloor of the boring room. He managed to locate the leak, and stopped further waste. The forces had been sufficient to nullify all arrangements made to prevent an overflow.

The works were practically thrown open to the public during the morning, and there was an even greater attendance of yisitors through the afternoon. Many mej in Mr Fair's position would have reseated the intrusion of the more inquisitive, but ho was most courteous to all, answering the most pertinent questions readily. Those who had never before taken the trouble to interest themselves in the operations were iu many cases surprised at the amount of work done, of oil obtained aud stored, and at the possibilities of the well, and the oil industry generilly. Fot the benefit of these, the manager tarred o a the tap, and gave an idea of the rapidity of the How, such as could not otherwise be convoyed. The oil gushed forth in a thick, waxy stream, almost as free as water. The lamplc taken was perfectly free from water, saiid, grit or any foreign or deleterious matter, and was described is a very valuable product, from whicli jould be obtained many by-products ibtainable from only the best oils. Among the visitors was a gentleman reared, on an American oillield. He

stated to some enquirers that this appeared to be a very good bore. In nauy cases, he said, the How from wells on the best fields was only four >r five barrels, whilst it appeared thai this one was more likely to produce a few hundred barrels daily. The money from oil springs, he said, depended wholly oa the number of wells put down.

Asked why the work of pumping was not strenuously proceed with, in order to convince the sceptical of the value of the present well, Mr Fair said ho knew a large number of people would :ike such a demonstration. They wore, )f course, not shareholders, but outside public, who would like to control the company's affairs. But the sharc- ' uolders hud not put their money into •Jus thing for the purpose of giving lomonstrations for the benefit of the jutside public. There was no necessity to allow the oil to run, aud such a proceeding would only play into the hands of speculators, whose activity, of course, was of no real advantage to the company. Mr Fair seemed even more than ever confident of success, and opined that there would be no dilllculty iu raising the £50,000 (not £IOO 000) required to erect the refining aud other works

necessary to place the oil on the market in the most saleable and profitable forms. He further stated that the company at present operating was a prospecting company only. Now that the prospectors had succeeded in locating the oil, and in obtaining it in good quantities, and had overcome'lhe inflow of water that had baffled all previous attempts to work the fields, its work was practically ended. It remained now to float another company to work ihis most valuable asset to' the best advantage. That required more capital than was just now at the command of ike Moturoa Petroleum Company. On Saturday night a parcel of shares changed hands at £55 each, and the market at present shows no sign of a decline in price. A meeting of the Directors of the Company is to be held this morning, when the report of Messrs. Pair and Weston will be considered, and the future operations of the company decided upon. Mr Pair has received a communication from a gentleman near Taupo, to the. effect that he has discovered indications of oil in that neighborhood It is Mr Fair's belief'that an oil field extends right from New Plymouth to Gisborne. As oil, though in limited quantities, have been found on this line, there is some justification for the belief.