PETROLEUM.

Taranaki Daily News, Volume LI, Issue 287, 28 November 1908, Page 6

PETROLEUM.

OIL AND FREEHOLD COMPANY. . The report of the Taranaki Oil and Freehold Company, to be presented to the annual meeting on Friday, 18th December, is as follows: Work in the bore has been carried on steadily through the twelve months, except when a serious mishap befell us in February last which necessitated the suspension of driving for a period of just three months. On the morning of February stli, while driving was proceeding and the tools in the bottom of the well, a shock of earthquake occured which dislodged a boulder and caused it to fall on top of the drill ia such a maimer as to elfcctually block the bore. After fruitless attempts to extricate the tools Mr. Balloch recommended the directors to line the upper portion of the well with a 14-inch casing, so as to prevent the recurrence of such mishap without contracting the diameter of the bore, as would have been necessary if the permanent 12-inch casing had been inserted. This was accordingly done, the making ol the casing in Wellington accounting for most of the delay in resuming drilling. Our exiierience has been very different from that of our neighbours at Moluroa, Oiuata, Bonithon, Inglcwood,

and Durham Road, all of whom have ~,1 counlered long "runs' of soft strata, wh.cli have in most cases ultimately led to cessation of operations, and, in those instances where payable oil has been found, caused -great dillienlty in shutting oil' water. At the present time our well has a depth of 885 feet and of this 740 feet of boring has been through very hard rock or difficult strata (sucn as a small stream of loose or moving gravel) which has made progress very slow and kept the forge fully occupied | with re-setting the drills. Of the 880 feet, 311> are at this date lined with the 12-inch casing, which we propose to j'-curry down to a depth of 1000 feet; 500 feet lias been bored or reamed out to a diameter of 14 inches, and the remaining ;t."> feet have been bored with the 8%-inch bit and are now reamed

out to 14 indies in order to receive the 12-ineh rasing We are ill a position to shut oil water at any time, and have e\ery reason to anticipate that whenever payable oil is struck we shall have no ilillieulty in doing so. From i 4!) feet downwards we have had encouraging 'shows'' »f oil, and these indications have steadily improved as we proceed. I A most noteworthy and hopeful feature is the fact that this oil is coming to ns through good hard rock and not in papa or very soft material as has been the case elsewhere. At the outset drilling was carried on continuously during fire and a-lialf days per week, twenty-four hours per day, but it was soon found that this system was a risky one, and we now work one long shift of eleven or twelve hours, under the personal supervision of our engineer, Mr Ballocli. Shareholders will do well to bear in mind that our well has,the largest diameter of any in the colonies and that a 14-inch boring covers three times as much area as one of eight inches. The Hon. W. Hall-Jones, Minister for Public Works, in recent conversation with two of your directors, expressed the opinion that all the boring undertaken in New Zealand was of too] small diameter, and, when informed that we had started with 14-inch and intend to carry this down to 1,000 feet, he said Ire considered we are working on sound lines. As the Minister nasi had occasion to study the oil question in the interests of the Dominion, tiiisi opinion carries some weight and is gratifying to the Hoard. Ways and Means.—lt will be noticed ' that, although our shareholders generally have responded most cheerfully to the calls made upon them, there is a substantial sum in arrear and your directors propose to tak« steps necessary to compel payment of these obligations. We sec our way to carry on work for another year if need be, but are all sanguine that oil will be got in our bore at a much less depth that 't Moturoa, and that the operations of the next few months will produce satisfactory developments. Directors.—You are now called upon to elect two directors in place of Messrs. Browne and Skinner, who have been ballotted out, but are eligible and oiler themselves for re-election. Last year Mr. t(. \V. Henderson, of Wellington, one of our largest shareholders, and who is constantly about the country, was idccted tu the Board, and tliN gentleman (who receives a weekly import as to our doings) has been of jfrcat, service in keeping us in close ttuuh with many of our shareholders who are resident south of Taraiinki. Auditor.—Six mouths ago we had the misfortune to lose, by death, tin? services of our auditor, Mr T. 0. Kelsey, F.X.Z.A.A., and the directors appointed Mr V. T. Mills to take his place. Mr Mills has audited the accounts now before you, and will be pleased to accept election at your hands. Acknowledgments. Although iwe have not troubled the newspapers verv much during the year, (he kindly interest of the local press has been manifested from time to lime, ami its willingness lo give us publicity whenever desired is cordially appreciated. Your directors feel il n duty to recognise the ability and devotion of our engineer, Mr Ballorh, who lias at times had verv dillieult positions to deal with, and has always proved himself competent and anxious to serve us. Our secretary, Mr Medley, also has not spared himself, and the large volume of correspondence which has passed between our office and the shareholders all over the Dominion gives evidence of careful attention to detail on the part of the staff. Our sentiment is still "To Oil or London."

PROSPECTING AT GISBORNE. Wo have received private information . to the effect that an English company have accepted the terms of the boring rights over forty-six properties in the (lisbornc district, and will put in £SOOO to (iisborne's £IO,OOO, which amount is already guaranteed. There is only one point to be overcome, if it is not already arranged. The original parties agreed 'to put down a test bore within five years on each of the leases. The English company is willing to start six bores in locations to suit themselves, and then if not successful to shift the go;,,- for n further six tests, but I will not agree to the original terms, wliic-li are almost certain to be varied •