PETROLEUM.

Taranaki Daily News, Volume XLVII, Issue 8158, 16 July 1906, Page 2

PETROLEUM.

TARANAKI versus AMERICAN. Following the article which appeared 1 tli' - x iews on Saturday, on the prospective money-making capacity of a flowing l'aranaki oil well, a comparison of tho respective values of a Taranaki and an American bore should bo of interest.

Taking 100 gallons of American oil, and working out the value from the analysis published in tho "Scientific American" of 10th December, 1905, we (ind that the total value of the various products works out at £2 18s, or about 7d per gallon, made up as follows: —Burning oil, 70 gallons at 6d, £ 1 18s j lubricating oils, three gallons at 3s, 9s; benzine, neptha etc., 11 gallons at Is, lis; pitch 0, wasto 10 gallons—total 100 gallons £2 18s.

A similar quantity of Taranaki oil, on Professor Easterfield's analysis was shown ou Saturday to be worth £7 12«, or Is 6}d a gallon made up as follows: Forty gallons burningoil, £1; lubricating oil 37 gallons at 3s, £5 lis; Benzine, naptha etc, 20 gallons at is, £1; pitch, two gallons at 6d, is; waste 11 gallons—total 100 gallons £7 12s.

Based on the highest authorities, these calculations show that the crude Taranaki petroleum is worth nearly Is a gallon more than American. The same issue of the "Scientific American " tells that the Humble oilfield was unknown at the beginning of 1905, but the latest estimate previous to December 1.905 gave the output at from 80,000 to 85 000 barrels, although at that time less than 75 (lowing wells had been struck. In June, 1903, there were 735 oil producing wells in tho State of Kansas. In six months tho number had doubled, and in December 1905, only 2£ years after oil was struck, there were fully 2,500 flowing wells.

After reading through this most interesting arliclo and learning what oil has meant to America, it is difficult to realise what its discovery may mean I o Taranaki and New Zealand. Yet in America we are told they had the same class of "doubting Thomas" as is in evidence in New Zealand to-day. When Colonel Drake first struck II He." there were plenty to tell him to " let her run " for 24 hours, a week, a month or longer, according to the depth of their doubt. The advice did not suit Col. Drako, though He simply started to do what the Taranaki company is doing—to get more pay. able wells. This policy has made America the first oil produ ing countr / in the world, its production in 1904 beinj 119,0J),000 barrels, while it is edimated that the output in 1905 reached 150 million barrels.

A Waiganui syndicate has been formed to prospect for oil on the " Heidelberg" property, South road. Mr Geo Fair made a good display of the colonial analyst's (Mr Pond's) exhibits in the Auckland Stock Exchange buildings. The samples, of which there were more than a dozen, from fine machine oil to parafin wax, and from kerosene to the crude petroleum, were the source of considerable interest to the people of Auckland, and have done much to instil confidence in investors. Mr Fair brought a number of exhibits down with liim on Saturday. A large number of shares in the Company have been app'ied for in Auckland, whilst in Wellington the shares have gone off very well The sharelist closes in a few days' time. It is expected that six different companies and syndicates will be at work boring for oil in the New Plymouth district in the course of a few mouths.

TARANAKI OIL AND FREE. HOLD COMPANY.

In view of the important developments during the last few days in the further discovery of strong indications of petroleum over an extended area in the Carrington road district a good dcai of activity has been evinced in Tnranaki Oil and Freehold Company's shares, and already the brilliant prospects of the company may bo said to be greatly enhanced, much to tho satisfaction and reassurance of the large New Zealand investors who applied for shares. According to tho latest reports there has been a very steady demand for shares in this company, and it is hoped that at a very oarly date the directors will be in a position to commence operations. Applications for shares should be forwarded to the company's secretary, Mr Medley, New Plymouth.