PETROLEUM NEWS.

Taranaki Daily News, Volume LIII, Issue 66, 27 June 1910, Page 5

PETROLEUM NEWS.

TA'RAXAKI PETROLEUM CO. THE RECENT NEGOTIATIONS. DIRECTORS' VIEWS AND RECOMMENDATIONS. The following circular has 'been circulated amongst shareholders by the Taranaki Petroleum Company:— Your directors have to report that they have for some time ibeon considering overtures from different groups of English capitalists for the introduction of additional capital into the company, but none of these has so far led to business, as, although the terms proposed by us were otherwise accepted, yet not one of those treating with us were prepared to put down a reasonable deposit. This meant that if we had agreed to their proposals they could hold the option over the company's property for, say, six months, and then, if unable to float it on the London market, with probably a load of commission, etc., throw the property back on our hands without penality or loss to themselves at a critical stage in our affairs, and bar us from negotiations with other people. As our present funds will <be scarcely sufficient for the present year, it is now proposed to issue the whole of the 32.0W unallotted shares for subscription, to foe first offered to the present shareholders, pro rata of their existing foldings, and any balance not taJcen up iby them to be open for public subscription. It is proposed, in order to make the position as advantageous as possible to shareholders, to issue them as preference shares at par; to be preferential as regards dividends to the extent of P/ a per cent, per annum (not cumulative), and then to rank equally with the ordinary; shares in the distribution of any additional dividend, after the ordinary share* holders receive 7% per cent, per annum. The shares to be preferential as regards distribution of assets—should the company at any time ibe compulsorily wound up—to the extent of 10s in the £, before any distribution of assets among ordinary shareholders, and to subsequently; rank with the ordinary shares in the balance of the assets, if any, after the ordinary shareholders have received a like sum. These clauses not to apply in case of any bona fide sale of the company's property at, say, over- 10s per share, in which event all shareholders, both ordinary and preferenoe, will rank equally in the distribution of the assets. The subscription of these shares will ibe—2s per share on application; Is per share on allotment, and the balance at Is per share every two calendar months. The funds thus subscribed will be, approximately, spent as follows:—* £9OOO to establish a refinery of a capacity of 250 barrels daily, which is absolutely essential, because the demand for crude oil is but erratic, even at the a> ,surd price of 4d per gallon, while there is practically an unlimited market for the refined oils and by-products at remunerative rates; £23,000 to he expended on further boring, Iboth by continuing present bores and -prospecting in new country, the rights over which the company can only continue to hold by boring thereon. The present output is reported by the manager to be, say, 23,520 gallons (or 94>/ 2 tons) iper month, and may, when refined, be expected to produce, at current market values, a profit of about £(572 per month, or 7% per cent, per annum on the whole capital, which encourages your directors to approach you with this proposal before Offering it to the public. In the meantime, your directors are of the opinion that the prospects oi rne wells never looked brighter than at present. No. 1, or "Birthday" bore, although not yet cleaned, out and casing straightened, yet yieilded 10 barrels in a week by flowing, and the output will soon increase. No. 2 for the same week gave 80 barrels, and now that the solid casing is being removed to be replaced by perforated at each seam (some six to eight in all) it is constantly blowing out oil and gas, with a little mud. The engines at both Nos. 1 and 2 are driven by one boiler xising nothing but the gas from No. 2.

It is not possible within the limits of a circular to give fuller information, but the directoi-9 would "be pleased if any or all of the shareholders would personally visit their .properties. Whenever this has been done, the impression gained 'by visiting shareholders has resulted in confidence in the future of the industry, and great surprise at what has already been accomplished.

AN OUTSIDE VIEW. We are in receipt of the following lettersSir,—Visiting your petroleum fjeld after an absence of a considerable time, I was surprised with the successful developments that have taken place. Perhaps I, who live some distance from the scene of action, will be thought to enthuse, for distant hills look green, but one cannot help being enthusiastic on Ihe possibilities' in store, not only for the town of New Plymouth, but' the whole of this coast, or rather the whole Dominion, if the present oil field turns out successfully. The history of the commercial business of "payable oil" is I lined with golden letters. Jt—metaphorically speaking—malkes cities spring up like mushrooms in the night, and blossoms out full-blown millionaires within one hour of the sun's rays. As I approached the derricks, I was struck with I the slimy yellow coloring of the sides. ! My companion quickly ipointed out that i this was oil which had burst up, and ' had flowed around the paddock, killing, as I noticed, anv vegetation it came in contact with. Pity in one way it is so valuable, as it would do to destroy all the noxious >eeds in Taranaki! _ A double pity th"re is so much of it being wasted ibv evaporation and crude methods. There is, I venture to say, by way of value, as much oil with its ingredients being run tbaek to the sea every day ns any half-dozen citizens of New Plymouth earn. We know from chemical analysis .that it is one of the most valuable oils found in the world, and everv effort should be made to make the most 'of it. The up-to-date understandinff oil Yankee would emphasise his nasal twang were he to see the methods in vogue. What strikes me seems to be the apathy that is displayed by all and sundry in connection with this oil business. T surmise that if any other plaee in this Dominion had the'results from boring that your New Plymouth' has they would hustle things on. The late Mr. Fair told me that from the indica* tions he had (insignificant to now) ho could raise £50,000 from any bank in America. But I humbly ask, what are the directors doing? Do they realise the ma'gnitude of what success means? Why not calil shareholders together and- «ee what can be done? Why delay? Why retard what will be unknown'riches to the whole Dominion? I forp,\*e would be-willing to sell inv few shares for theit face value if, by keeping them, I an<£ / others, for < *h« •yfwfo> <tf-Mipjfal, ai*J blocking what looks like the