INGLEWOOD OIL BORING AND PROSPECTING CO.

Taranaki Daily News, Volume LI, Issue 281, 21 November 1908, Page 5

INGLEWOOD OIL BORING AND PROSPECTING CO.

ANNUAL JiEETIXU OK SHAREHOLDERS. The annual meeting of the Inglewood Oil Boring ami Prospecting Company. Limited, was hold in tile Town ilaii, New Plymoutn, last night. There was an attendance of juoi, owi tweiuy shareholders. Mr. L. W. Aie.u.uder.' chairman of directors, presided. ANNUAL REPORT AND IiALAXt i;SliEliT.

The annual report and balance sheet were presented as follows: "Your directors, ia placing before von the second annual report of the company, would point out that the Norfolk road bore lias in the interim been carried to a depth of 2.500 feet, when, after mature consideration and on the advco of the manager, cue bore was closed down, the gas indications liavin.r apparently failed some distance above the extreme depth, no oil havino- be=n met with, and the countrv showing .o signs of becoming better for the purpose of shutting off water, nor containing oil m payable quantities. A proposition will be placed before you to increase the capital of the company by the issue ot preference shares, and the removal to; Mokau of the plant, on which district a geological report by Mr. Cochrane has been obtained, which will be at the disposal of a:iy shareholder wishing to peruse it."

rile balance-sheet showed that JC5141 lUs had been absorbed in working the bore at Xorfolk l'oad, including plant, boder, engine, derrick, etc. Office expenses, salary, advertising, and stationery absorbed £233 17s 4d. A debit balance of £370 (is 10<1 was shown, and calls in arrear amounted to £OIO. This latter amount had been reduced by; about £3OO since the issuing of th-' i balance-sheet. I

In moving the adoption of the report and balance-sheet, the chairman said the directors hud to admit the non-success of the bore at Norfolk road. There 3iad been some objection to the directors' abandonment of this bore, but they were moved to tnfs course by the hope of saving as much as possible of the remaining funds of the company. As soon as the derrick was dismantled, the men were discharged. During the past year certain rights had been secured, amongst them some 2000 acres at Mokau. Mr. Cochrane, of Dunedin, had been over the ground, and submitted his report, upon which the shareholders would be asked to aecide whether or not to raise the capital necessary to bore on these Mokau rights. The company held assets in sundry tools and plant, practically as good as new. The strata passed through at this bore were not encouraging, as tlte expected rise was not found, whilst till about 445 feet the drilling was of the "worst, being in volcanic conglomerates and gravels From tliat depth onward the drilling was not so hard, and the chief effort of the manager was to shut off the water as it occurred. In this the manager had varying success, at one time having a completely drv hole. Practically the whole of the call capital ( £6780) had been expended. This left them with about £3OO cash and unpaid share calls and first-class plant ■wortl, say, £I7OO, for working pur- , poses. There had been several opinions expressed concerning the engagement of such an expensive manager as Mr. McDonald, but he and Mr. Watkins, the , directors who had see more of the manager than anyone else, were quite satisfied. Both Mr. McDonald and Mr. Young (driller) had treated the company liberally in leaving the service before the completion of the term of their engagement. In concluding, Mr. Alexander said lie would be leaving the district shortly, and did not propose to veoffer himself for election, but !he was prepared to "keep a seat warm" for a Mokau director if the meeting so desired.

In answer to a query, tlie chairman said that there had been no actual discovery of oil in the bore.

The report and balance-sheet were adopted.

MOKAU PROSPECTING. After some discussion as to whether or not the report of Mr. X. D. Cochrane, F.G.S., on the Mokau rights should be read in full, it was decided to read it, with reservations as to locality. Mr.. Cochrane reported that lie had inspected the Mokau country, noting the formation from an oil launch proceeding up the river. The general geological structures might be taken as a very slightly flexured, inclined pla:ie, dipping at a low angle to the southwest. This meant that on these lands the Mokau coal seams, or any oil shales, should be intersected at a much bss depth than at New Plymouth. "In other words, you are lower down in the rock sequence, and so should have lew, to bore if oil exists. The ago of tliuse rocks, correlating as far as might be with the recent classification of the geological surrey, is mioecae, passing lip into pliocene, bordered on the coast-lia • with patches of pletistocene, or let-cut. Tile former were the beds in which lie had had personal knowledge of rich oil shales in the South Island, and in which geologists generally agreed that such were likely to occur. "Faulting" in the strata was not in great evidence, and, compared with much of New Zealand,

it was very rare. He carefully examined both blocks of land for any indication of petroleum, and on each there

were feeble springs of marsh gas, but which were in all probability due to the decomposition of surface "vegetable matter in the swamps However, on some of the Mokau land, there were slight indications of petroleum,' which were not from the decomposition of iron pyrites. Kock beds as reservoirs for petroleum were favorable, but hardly ideal. Again, the Mokau coal seams, possibly slightly better fa quality owing to the extra depth, would probably be intercepted in thu depth likely to be bored. It would be quite inadvisable without more detailed geological surveys to give any estimate of the depth of such. There was a further possibility of striking a bituminous coal scam under tho Mokau coal measures, but he had no evidence in this field at all bearing on the point. In concluding, Mr. Cochrane said: ''To sum up, I cannot say I am highly impressed with the prospects of striking oil: still they are by no means unfavorable. I am strongly of opinion that payable oil will be struck sooner or later in Taranaki or South Auckland. There is no reason •why it should not be. In the light of present developments I should prefer boririg at these properties to the neighborhood of the present bores. While the present proposition involves the [ Usual risks in a country where payable oil has not yet been found, and should not be undertaken by those who would iniss the money if unsuccessful, I consider the ground is well worth boring.'' Mr. Cochrane also indicated certain localities which were in his opinion the most favorable. Considerable discussion ensued. One or two shareholders thought there was no need for haste. It would be as well, before launching out in Mokau, to await the issue of the Taranaki trial bores, where oil was known to exist. ' The chairman moved, according to notice, "That after consideration of Mr. report, this meeting couplers it is advisable that boring rights be acquired in the Mokau-Awakino district, and, if sufficient capital be fort.i-1 coming, the company's plant lie removed ■ thence,and boring operations be started ■ there." He would not recommend com- ■ mencin'g a bore without the company • having at least C2.">oi) in cash. The ; Mokau rights would en-l £3O in cash ! and £SO in shares in the li'.'w issue, f Mr. Watkins seconded, r Mr. W. Rossiter moved that no ae- ) tiou be taken in the matter of prospect- - ing at Jlokau pending receipt - of the Government Geologist's "e----port upon the Taranaki oilfields, and that the directors be urged to combine Iwith the other companies in an endeavor to secure a visit from the Covcrnnnmt Biologist. Mr. Bacon sei-oudcd.

Mr. Alexander thought this was was;of time. Leading political men here had failed to get any satisfaction from the Ministers. In answer to a question, Mr. Alexander said that there had been reports made some years ago, but a detailed report was required Mr. Grant rejoined that before thai was obtained there would be another bore made for the reception of liimscir a'.il the mover. Of that lie was sure. (Laughter). The chairman said he believed there ■was a good chance of obtaining capital for the Mokau venture, but none for another Tnglewooil bore. The amendment was lost, and the motion carried. ELECTION OK DTUF.CTOKP.

Messrs. Ahier. C. Kamson, and .T. I, El win were elected directors. r IXCT.EASE OF CAPITAL.

It was decided to increase the eapit.il of Hie company by the issue of iIOO preferential shares of £2 each: and that each of the existing CIO shares lit divided into five £2 share'.

The customary votes to the directors and chairman concluded the meeting.