PETROLEUM.

Taranaki Daily News, Volume LI, Issue 331, 25 January 1909, Page 3

PETROLEUM.

TARANAKI PETROLEUM COMPANVS - REPORT. The chairman of the Tarunaki Petroleum Company favours us with the following report:— The report for last week is somewhat meagre, although all the indications are fully as good as ever. No. 1 has been quietly running oil mixed with water for some time past, and ai barrels Were filled from the tank there last week. There may be a few more barrels left in it, and if clean this will be caskcd up; if not, the residue will be emptied into the earth tank and used as fuel later on, as it is proposed to obtain oil burners as soon ils possible. The big tank will then be taken to No. 2 and a smaller one put at No. 1. At No. 2. some of the tools were lost on the 13th inst., and were not recovered until the night of the 22nd, so during tliis time only casking and storing the oil, in addition to making suitable tools and fishing for those lost, mm <4mm. Ob Saturday morning, when drilling was to be resumed, the oil was right up to the top of the casing, and when the sand pump was put in the oil overflowed. It is proposed before long to put a socond shift on this bore, so as to get down to the anticipated big seam as soon as possible. Work at No. 3 is going steadily forward. Nearly all the casing is in, and it will be tested to see if the water is shut off before long; if this is so, it will probably be left for awhile, and full strength- put on No. 2. Small orders for oil are being received and executed from time to time. The Railway Department had another live barrels sent to Petone on the 12th inst. for experimenting purposes, probably gas making, as they will not try it on. a locomotive until such time as they are assured of permanent supplies, which, it is hoped, will not be long.

LESSON, FROM NIGERIA. Captain Harry Andrews, of Wellington, writra to the editor as follows: "Sir,—A communication from a petroleum' well engineer operating for an. .- English company in Nigeria presents many features of the difficulties encountered at Moturoa that may prove of interest to the shareholders and to learn tha nature of these difficulties and the •■final success of the company.. In 1905, £20,000 was asked for and subscribed in lindon for the purpose of prospect-j ing for petroleum in Nigeria. The pro-1 perty consists uf 1000 square miles, and five bores were started. They were, aB nearly as I can glean from my correspondent, about star-shaped, and about one mile apart. This appears wise, for, to the initiated, <oil belts are known to he narrow things. Some months since

the company strnck pronounced payable oil of good quality in loose sand rock,

and sand rock is known to be the home of oil. For many: weeks they were ' pumping the sand from the boring, a fact which in itself, at at Moturoa,

frightened the shareholders. So far from this being a bad tiling, it is a good 1 ' feature, for as a bores in loose strata that do not ydeld mud or sand or both at the beginning generally prove poor producers. A little salt water was ' also struck; this, also, was not a bad feature, for salt water is invariably found in oil wells. The method used in excluding the sand without also excluding the oil was like the method (as I

understand it) being used at Motnroa. At the first opportunity they tubed the •weU, using a working ban-el screen to protect the valves, and also a removable well-liner. I believe the time is now

ripe for all the small companies to cement into one, for self-preservation, if for no other purpose, because if the petroleum in large quantities proves as rich in by-products as in the small quantities already obtained, the greater profit would be realised by refining the oil and not by sale to the Admiralty or steamship companies. In such an event small boring concerns having rights over but a few acres would be placed at the mercy of the refiner. Besides, there is too much expense to be borne by the shareholder in these small concerns. Further, the immobility of the oil so far produced must be taken into consideration. I believe that steel tanks, comparatively air-tight, would the better serve to preserve the oil from excessive evaporation. v To overcome the gas pressure in the storage tank, a receiving tank could be used, and the oil immediately pumped to the storage. After all, it is to be regretted that the No. 1 bore was not made to serve the purpose of testing that vicinity. It certainly showed all the. desired 1 features for tint purpose, gas and oil."