PETROLEUM.

Taranaki Daily News, Volume XLVII, Issue 8112, 17 May 1906, Page 2

PETROLEUM.

A RETROSPECT. HISTORY OF 2nd and 3ed BORES,

Even previous to issuing the circular of July Ist, 1885 (contained in yesterday's article), Mr Samuel had had oc casion to contradiot exaggerated rumors. In a letter from Mr Samuol to Sir Julius Vogel of July 6tk, 1895, he briefly narrated what had taken place, as follows: —We engaged driller after driller to clear out the bore, the result being that they all failed, and ended by leaving another lot of casing and other tools, etc., down it, and thus rendering it hopeless to proceed. Our funds were exhausted, and no one was prepared to advance sixpence more, and, worse still, our faith in drillers was at an end. We found that all the drillers at Gisborne in the past and our three had failed to succeed in avoiding ruinous accidents, or to do what they were engaged to do, and little «lse can be said of thoso of your company, Booth and Smith. Just then an artesian bore-driller from Queensland, named Pair, who had had experience in oil in America and Roumania, visited New Plymouth, and seemed inclined to take an interest in the concern, In despair, and as a last alternative io surrendering the leases and selling the plant for what it would fetch, I went to Sydney, and there Fair succeeded in getting tho co-operation of some persons of capital and enterprise—the result being that they agreed to put down a bore 1000 feet for an equal share of all our properties and a lien over all the additional plant they might have to obtain. After several months, and after constant disappointments and accidents, Mr Fair finished the bore to 1021 feet about a month ago. Ho reported this |o us, and that he had struck tho same oil, said by Mr Booth to have been struck by him, and that in his opinion it was at 875 feet, and a seam about four feet thick and in payable quantities. Once more I visited Sydney, and we formed a company of , 50,000, shares of £1 each, half being 1 paid up as purchase money, It has since been found that oil did not run continually, and that water—probably sea water—entered thi bore. It is ! thought to ho« been influenced by the 1 tides, as the height of the water in the i bore seems to have risen and fallen ■ about ten feet. Two other drillers s connected Mr Fair, who have come ' here, agreed with him that the water i could not be " shut off," and that the ' bore was, therofore, useless. Notwithstanding all offorts to pump out the . water were [unsuccessful, we were greatly encouraged by the undoubted i fact that oil to the extent of several barrels was obtained from the top of ; the water in the bore at intorvals, it . having, "after a rest" of pumping and t other operations, come up through the ■ water from the bottom. The company is being registered in Sydney, and no i shares at all are being placed on the . market. If this enterprise succeeds, I - shall be sorry you are not in it; if it, 1 like all the others fail, it is better that i ou should l;se no more time or

money." At that tune the syndicate held ironsand, as well as oil rights over the Harbour Board's ktd and foreshore, and the attitude taken up by Mr Samuel in regard to these is shown by the following extracts from a letter from him to the Harbour Board of 10th July, 1895 :- '•A bore has been sunt 1021 ft in depth, with the result that, although indications have been obtained which

render it practically certain that payable cil exists iu the neighbourhood. Payable oil cannot be obtained from

the bore by reason of it being found impossible to ' shut off' the sea water. Che bore, therefore, not being payable, lias been plugged, and the derrick, plant and machinery haye been re. moved and erected on land about a mile distant, over which the owner has granted boring rights similar to those granted by the Board. We have irrauged for the sale of our leases and ill our property on terms which will, we feel confident, provide for the thorough and efficient testing of the oil doposists, which past experience shows exists somewhere in tho neighbourhood, , . . I think the Board had better ask that the ironsaud rights should be surrendered to the Board itself, so that, should any peason hereafter at any time evince any real ability, as well as desire, to embark capital in the iron industry here, the Board may be able to grant them the liberal concessions which such an enterprise would deserve. I think I should add that I am myself one of those devoting considerable time and capital in furthering the present practical efforts which are being made to establish here protroleum works and refineries, and that I shall in all probability be one of the company's New Zealand directors. Should it at any time happen that the Board should think it dcsirablo that some other solicitor should act for the Board iu connection with the lease, I should be happy to acquiesce. Meantime, seeing that the Board is not likely to receive any pecuniary return for my services in this matter, 1 will at present make no charges heroin."

Through Mr Samuels' efforts, the ironsand rights were subsequently surrendered to the Harbour Board.

In a letter from Mr Samuel to the Sydney branch of the syndicate of th) sth July, Mr Samuel wrote: Owing to my being carried on to Wellington, t did not reach New Plymouth until the night of 28th June. Meanwhile M.r E. E, Fair had sent a telegram to Mr Sheppard-" Plug off present bore; shift plant as arranged; wire if casing out," and Mr Sheppard had replied: " Started jack casing to-day," and (on the 24th ult.) " Six inch casing lost; all rest out; plant now being removed." On the afternoon of the 29th June, T met our New Plymouth partners, aiid fully explained what hnd transpired, and what had been previously arranged by us in Sydney. Like myself, before we came to a full exnlanatiou, they were astonished at the" change of the aspect of affairs, as they had considered the lines adopted as suggested by Mr Fair, on behalf of the Sydney partners, generally acquiccsed in by themselves. I have sent to each person who has paid a deposit to Mr Pair a chequo for the amount of the deposit paid, with a circular, copy of whicn I send you herewith, and which will I trust moet with the approval of yourself and our Sydney partners. I find it necessary to add the personal remarks by reason of the constant reiteration by persons here of statements to the effect that they have applied on account of their reliance on myself, anil also of the prevalence licre of the most exaggerated rumours; and in particular of rumours, the nature of which may be gathered from the enclosed cutting from the " Brisbane Courier " of the lltli ult f feel sure tliat Mr R. C. Fair will bo very much annoyed at such exaggerated statements laving been published, and will approve of my having emphasised the distinction between his own statements as to the result of the boring and those made by any other person. . . I have received a letter asking whether we will let the abandoned bore " on tribute," but, on enquiry, I learn j that it cannot be re-oponod without the re-erection of a derrick, so that at prcsont nothing can be done. Ploaso tell Mr Fair that I shall bo very glad to see him again and to bo relieved of my novel duties and responsibility. About the same limo Mr Samuel sold and shipped the first crude pctrolcum to tbe Balclutha Water Gas Company, who continued to be mi?tomccs for a considerable period, after which the Kailway Department for some years purchased tho crudo petroleum for the mauufactiiro of gas at its Pctonc Works.

Meanwhile the directors proceeded to erect a derrick on tb,e farm of Mr Mace, at Herekawe, near/)mata (about a mile or so from No./l and No. 2 bores), and removed the plant there. »'• rR. E. Pair was detained in Australia, and the work was much retarded by stormy weather. The boro was started about tho middle of July, ivhon large boulders wore found vory close to the surface, ciusing considerable delay m operations. The boulders continued to a depth, of about 50ft. tho easing

having to bo forced down, nnd from 50 to 90 feet sand and gravel was passed through, after which bluo papa was encountered, when as much as 50 feet | was drilled in a day. At 135 fcei sand was again struck, and the casing had to bo again forced down, rendering pro gross very slow. The casing used so far was 8 inch.

Meanwhile proceedings to form the (company continued, the linos being those insisted on by Mr Samuel, viz., that the management should be that of the Taranaki directors in so far as was practicable. In a letter of 15th August, 1895, to the Sydney partnes, Mr Samuel wrote:-" I can't see that your Board or its secretary can possibly have much to do in the immediate futuro; the whole active management must necessarily—for better or worse—be local. We are working very cheaply at our end, and are saving in every dir ction possible, as, until we reach payable oil and get some inoomings, the more we save the more we shall have to spend in drilling. lam taking up all the shares I am entitled to, so that my wife and I between us will hold 5185 shares. If for no other reason it will be worth my while to take a very active part in the management, and I will carry out all matters in which legal knowledge is necessary, myself—making no charge. . . . There seems no immediate necessity for Mr Fair to hurry over. We oan scarcely expect to strike oil until 800 ft. depth, and it will, doubtless, take several weeks beforo we reach that. I wish you could come ever, and I hope that if you receive news of our striking oil you will do so without delay. There are a great many things I should like to talk over with you,- and, particularly, I should like to have you here if we do not strike oil in this bore, as I feol strongly that it would not be wise in that case to go further afield, but would like the next bore to be as close as possible to the Moturoa bore consistently with a strong hope of escaping the sea wells. £I,OOO ' a pop' is too much to risk in wildly probing at a groat distance from the spot where we know the oil is, until, at all events, wo are getting something from the produce of our bores."

By the 19th August a depth of 500 feet had been reached, and Mr Samuel forwarded to Sir James Hoctor samples of the strata obtained from-the lovels of 250 ft and 400 ft, as well as papa from 530 ft.

The company was finally formed as agreed upon—being merely a conversion of (ho two branches of tho syndioate with a limited liability company, without any prospectus and without any issue cf shares to the public; but the promise of Mr Samuel in his circular was carried into effect by the New Plymouth shareholders.

TARANAKI PETROLEUM COMPANY, LTD. THE RECONSTRUCTION PROPOSALS. As stated by us yesterday the directors of the Moturoa Petroleum Company have drawn up a scheme for the reconstruction of the company on moro ambitious lines. A circular convening an extraordinary goneral meeting of the members of tho company will be held at New Plymouth on Monday 28th inst., for the purpose of considering, and if approved of, passing the resolutions which are set out below for voluntarily winding-up the said company |with a view to its re-construction in accordance with the following scheme:—

1. That the Moturoa Petroleum Company, Limited, be voluntarily wound-up under the provisions of "The Companies Act, 1903," and that Mr Thomas Owen Kelsey, of New Plymout, accountant, be, and he is hereby appointed, liquidator of the Company for the purposes of such winding-up,

2. That the said liquidator be and he is hereby authorised pursuant to soction 259 of " The Companies Act, 1903," to enter into an arrangement with a new Company now formed, or about to be formed, for the sale to it of tho whole of tho business assets (other than money) and undertaking of this Company in consideration of the allotment of shares in the new Company, upon the terms of the scheme for reconstruction which has beca submitted to the meeting, and is for the purposes of identification signed by the chairman of this meeting.

SCHEME OF BECONSTBUCTION, The following is the scheme of reconstruction referrod to in the accompanying circular: — I.—The Moturoa Potroleum Company, Limited, shall be voluntarily wound-up. A new Company having been formed (or being about to be formed) under the name of "The Taranaki Petroleum Company, Limited," with a capital of £120,000 dividod into 120,000 shares of £1 each, the whole of the lousiness assets (other than money) and undertaking of the Moturoa Potroleum Company, Limited, be transferred to the new Company, in consideration of the allotment to the Liquidator of the old Company, or. his nominoes, of 56,0QQ ordinary sharos in tho new Company credited as fully paid up. 2.—Tho sale of the business assets (other than money) and undertaking of the old Company shall be carried out under the provisions of section 259 of " The Companies Act, 1903," and the Liquidator of the old Company shall apply the ordinary shares to be allotted to him as aforesaid, lirst in satisfying the claims of any dis9ontient members of the old Company in accordance with the provisions of the said Act. Secondly, in payment of all liabilities of the old Company, and thirdly, by distributing the balance amongst the moinbers of the old Company in proportion to their rights and interests therein respectively. 3.—The Moturoa Petroleum Company shall pay tho cost of its liquidation.

&■ —The cost of promoting, forming and registering the Taranaki Petrol leum Company, Limited, shall be paid by it, and any costs or expenses incurred iu that behalf by the Moturoa Petroleum Company, Limited, shall be refunded to its Liquidator by the newCompany.

THE BORKS AT MOTUItOA.

TO THE EDITOR. .Sib,—Dr. (now Sir James) Hector visited Taranaki in October, 18GG, and examined the formation in which the petroleum oil occurs. At the time of his visit, borings were iu progress at three places. Close to where the Harbor Board's mixing shed now stands, the Taranaki Company's No. 1 bore was sunk 310 ft deep in tho agglomerate; oil patches at 354 ft. The sanio coml»n.v's No. 2 boro was on the Island of Mikotahi; tuffaeeous sauddtone 20ft, agglomorate 85ft, sandstono 30ft, agglomerate 10ft; total 14,5 ft. Several pitches with oil. Messrs Carter and Company's bore, known as the "Alpha Company," or "To Oil or London," was situated somewhero near the Harbor Board's smithy. From this bore most of the oil which has been chemically cr imined was obtained. Depth Q£ shaft 00ft, bore to ISOft in the agglomerate. Oil patches at -Hit, 80ft, and 180 ft, This bore yielded about •50 gallons per week. Another bore was sunk near the Hongi Hongi Creek, and was known as " To Oil or Dublin." Unfortunately I caunot givo depth or results,

Specimens of pctroloum analysed by Mr Skey, one hundred parts of the crude oil, as obtained from the wells, having a specific gravity of '962, gave i Distilled oii of spccillo gravity 'B7l 2.0 „ -8!):) 10.0 „ '917 8.0. ..- i, „ „ -an 60.0 filid bitumen ,„ 6.1 'Pixed carbon 12.1 4sU ' 1 ; 5 100.0 These notes have boen culled from Dr, Hector's report, and may be of interest t) your readc's.—l am, etc., fI.W,