PETROLEUM.

Taranaki Daily News, Volume XLVII, Issue 8111, 16 May 1906, Page 2

PETROLEUM.

A RETROSPECT. HISTORY OF SECOND BORE. In 1894 there arrived in New Plymonth Mr R. E. Fair, who had previously been engaged with his brother, Mr Geo. C. Fair (manager of the present Moturoa Petroleum Company) in well-boring in Australia, an I' had had previous experience in oil drilling in Rouuiama, and in America. Mr Fair examined the oil, and enquired what had been done, and into the indications in the vicinity, Finally, it was arranged that Mr Samuel, as representing the Taranaki syndicate, should go to bydney. He left New Plymouth in November, and whilst in Sydney arranged with Mr Fair and his partners (Dr., now Sir Henry MaoLaurin and Messrs Spark and G C. Fair), that Mr Fair should sink another bore at Moturoa to a depth of 1000 feet or payable oil, and that they should thereupon become equal partners with the Taranaki syndicate, Mr Fair came to New Plymouth shortly afterwards, accompanied by another experienced driller, named Drader, and was subsequently joined by a third, McLister; both of the latter having had recent experience in drilling for oil in Canada. Mr Fair selected a site within a few feet of " Booth's " number one bore, and after a number of mishaps through losing tools and otherwise, reached a depth of 940 feet. We have been permitted to make an extract from his report to Mr Samncl on May 3rd, 1895.—" At about 875 foet, very good indications of oil were obtained, a small quantity accumulating on the top of the water in the bore, and coming up on the poles." [Poles were used in the first bore, after which a wire cable was substituted. |

"After each interval of boring, a small quantity of oil, similar to that obtained in the old abandened bore by Mr Bojth, can be dipped up, and some gallons of it were thus collected. It was hoped that the reservo'r had been reached, but, unfortunately, after passing through four feet of oily, soft matter, hard papa rock was again encountered, and, varied by streaks of softer substance, this has continued to

the present depih of 940 feet, where the strata now being drilled is a hard one, and there is no trace of oil or gas." Mr Fair at the same time stated that he would shortly have the casing down to 865 feet, and thus shut off the water from the higher levels with a view to pumping and ascertaining what quantity of oil, if any, could be got. Mr G. C. Fair paid a visit to New Plymouth shortly afterwards, and met the directors. On May 22nd, Mr R. E.

Fair reported he bad drilled to a depth of 1000 feet withor j reo :hiug payable oil, and stated thai; he had cased the bore to 885 feet, but it fas useless to case it lower.

Towards the end of the month, however, Mr Fair reported that he had struck a rich well of oil, winch would run at least ten barrels per diem. There was intense excitement at New Plymouth, crowds flocking to the bore, which was capped; but it was opened from timo to time by a small tap so as to fill all the bottles and cans of the interested spectators. Mr Fair announced that he would receive applications and deposits for shares, and they flowed in from all parts of Australia as well as New ZcaUnd. Writing on the 4th June, 1895, Mr Samuel stated the position as follows: -—"Thanks for congratulations. It really looks as if a good many years of worries and expenses are about to be richly rewarded. . . . The draft, mem. and articles sont to me provide for a limited liability company with a capital of £50,000 in 50,000 shares of £1 each, of whicli 25,000 arc A sharos fully paid up, to bo given to the syndicate as purchase money for plant, rights of boring, plant leases, etc., and the other 25,000 are to be contributing shares." On the Bth June, Mr Samuel left for-' Sydney with Mr K. E. Fair to finally arrange for the formation of the company. On arrival, Mr Fair reported that payable oil had been struck, and I

recommended the flotation of the company accordingly, but in the course of the meetings which took place between Mr Samuel and the Sydney partners, it trauspirod that water entered the bore and stopped the oil at intervals, so that the flow was intermittent only, and that, therefore, there was considerable doubt as to whether it was a payable well or not. It was decided to abandon all idea of raising the company by prospectus and public contribution, and Mr Samuel insisted that he should be at liberty to return the whole of the

applications and deposits received, and to warn the public in New Plymouth that some of the rumours relating to the results of the boring were gross exaggerations. He returned to New Plymouth, and found that Mr Pair had evidently recognised that his (number 2) bore was not a payable well, as his drillers had, by his instructions, abandoned it and moved the derrick else- . where. The following circular, which was published in the local newspapers, , explains itself:— The promoters of the Taranaki ' Petroleum Company, Limited, have , considered the requests made by Mr R. t E. Fair on behalf of a large number of I Taranaki residents (including yourself) that shares be alloted to them in the company about to be formed. The j promoters iiave, however, decided not to place any shares on the market as [ they are themselves prepared to contribute the eapital whicli they antici- ; pate will be required. I therefore beg to enclose herewith a cheque for the deposit paid by you to Mr Pair, which has been lying meanwhile to the credit \ of a trust account here. ... I take this opportunity of venturing to deprecato the e-citement and unreasonably sanguine hopes so prevalent here and in which it is almost impossible for any Taranaki residont not to more or less share. Although I have carefully avoided advising any person to endeavour to obtain shares, I cannot but recognise the probability that very many have done so because I am taking so many and because I am taking such an active part in the enterprise. This conviction is being forced upon me by the tone of the letters I am receiving from all quarters, and some of these refer to rumours relating to the results which I believe to be gross exaggerations. Personally, I know no more of the actual results than any other person here who has been anxiously watching the operations, anl I am quite incompetent to form any tpinion of my own as to the amount of oil which has been tapped by the last bore, or as to what would have been tho result if the water ' could have been ' shut oft'.' My ' associate, Mr R. K. Fair, is tho only i person on whom I rely in these i matters, and oa tho faith of his statements his Sydnoy partners (four gontlemen of the highest repute) and I arc quite satisfied to join with him in taking up all the shares to which we are entitled—and this all the more willingly because one of the Articles of Association will provide that no more than five shillings per share in all call be called up without the consent of the New Plymouth directors and of the Sydney directors." Thus closes the history of bore number 2, and another chapter in thp work of attempting to ostablish the oil-boring industry iu Taranaki. The third well will be the subject of our next article.