TARANAKI OIL AND FREEHOLD COMPANY.

Taranaki Daily News, Volume L, Issue 61, 6 November 1907, Page 3

TARANAKI OIL AND FREEHOLD COMPANY.

ANNUAL REPORT. 'Hie following is the text of tlia directors' report to bo presented to the annual meeting of shareholders in the Taranaki Oil and Freehold Company, Limited, on Friday, 29th November: — in the chairman's report, submitted to the statutory meeting held on 12th November last, he stated that the policy tof the directors was to arrange for the drilling of No. 1 well by contract, and negotiations to this end wore entered into with some re'iable people of good standing. The directors, howevsr, found there were many objections to this course, and that no contract could be obtained that would properly safeguard the interests of the shareholders, and ensure the boring to such depth as might be considered necessary. We, therefore, with reluctance, decided that it would be best to undertake the work ourselves, and we consider we were fortunnte in engaging the services of Mr Wm. Balloch, whose testimonials are of the highest order, and who has so far proved himself a capable and most competent master driller and engineer. Previous to leaving England in August, 1906, he was for twenty years in the employ of a leading artesion well boring firm, for whom ho carried out very important water and oil works in Great Britain and South Russia.

A good portion of the plant and machinery was bought locally, but it was found advantageous to send Home for the casing and steel cables—this saved us a lot of money, but necessarily caused delay in getting to work. Boring was eventually commenced at the beginning of June and has since continued steadily exjept for a stoppage of about .1 fortnight, when our engineer was prostrated with a severe attack of the prevailing epidemic—influenza, complicated by pneumonia, brought on by working when he ought to have been laid up. Our experience of the country has proved very different from that of our neighbors at Moturoa, Omata, Bonithon, Inglewood and Durham road, inasmuch as we have found nothing but hard and solid formations from 52 feet downwards. This has made the progress exceedingly slow, but the strata penetrated have been free from faults and fissures which characterise the country about the Sugar Loaves, and which have made it so difficult to shut off watei w here an oil seam has been tap. ped. This experience induces the belief that we are in more compact and settled formations than those who are operating to the westward of us, and that we may reasonably hope to be free from some of the difficulties which retard their progress. Small shows of oil have been got at several levels, but these merely serve to indicate that the gas observable on the surface of our freehold has its origin in petroleum. Expenses of working have been kept as low as possible, and the directors gue Mr Balloch fcredit for Carrying on his work without waste and- as economicnlly as is consistent with efficiency. Our secretary, Mr Medley, has also striven to effect a reduction in office expenses, with some success, but tho company will always suffer from the heavy cost onMed by the system of shilling calls which, while easy for the snraH .investor, has proved costly and laborious practice. Pro>por'ts—- At this date the directors are satisfied with the company's outlook notwithstanding the slowness of the work. Wo believe that—to use a sporting expression—the shareholders Mill have a good run for their money, and there is a fair prospect of our enterprise proving successful and therefore profitable. Funds in hand and to come in will be ample for all anticipated requirements for the next twelve months. Dealings in shares.—Practically none have taken place, only eight transfers having come before the directors, and these have all, or nearly all, been occasioned by deaths or removals. Several of the directors have increased their holdings during tho year. Directors.—Tou will be called upon to elect two directors, one in place of Mr W. T. Jennings, M.H.R., who recently resigned on account of ■ pressure of Parliamentary duties, and another to fill the vacancy caused by the retirement of Mr Corkill, who has been ballotted out, but is eligible for re-election. The directors desire to Impress upon you that we would be gratified to have associated with us someone specially no, minated by, and, therefore, particularly representative of our numerous shareholders who reside outside Taranaki, nnd Ave shall ourselves be pleased to support such a nomination.

Auditor.—Mr Thos. 0. Kelsey again offers himself for this position. Acknowledgements.—ln conclusion, we desire to acknowledge the kindly services of the Press, through whose columns our shareholders have from time to time been kept in touch with the company's affairs./ i

The sentiment of the company which first essayed to win Petroleum in Taranaki in 18(1(1, is a good one, and wo cannot do better than adopt it—"To Oil or London." The balance-sheet shows liabilities amounting to £10,173 5s lid. Assets include: Freehold property, £4012 12s; machinery and plant. £2152 15s; cost of working bore to date, '£o4s fis lid; office fittings, '£2 l 10s; fash in hand, £3 14s lid; cash in hand of English agents, £125 lis 3d; profit and loss account, "£1374 10s.