PETROLEUM NEWS.

Taranaki Daily News, Volume LIII, Issue 202, 5 December 1910, Page 7

PETROLEUM NEWS.

THE TARANAKI OIL AND FREEHOLD COMPANY. The directors' report for the year ended the 30th September, 1910, is as follows:—When addressing you a year ago your directors pointed out that the exhaustion of our funds rendered it necessary to consider the question of raising further money, and at the annual meeting, held on 17 th December last, the directors were recommended to place on issue the 2000 shares which had been held in reserve, and to take steps to increase the Company's capital by a further £IO,OOO. Accordingly, early in the year, a circular was issued to shareholders inviting them to increase their holdings, but, probably owing to the state of the money market at that time, the response was somewhat disappointing, only some 000 shares being taken up. In the meantime the directors found it necessary to suspend operations and reduce current expenditure to a minimum. Very satisfactory developments at the Taranaki Petroleum Company's bores at Moturoa (where No. 2 well has been yielding about 100 barrels per week without intermission since January last), together with the good indications at our own well, caused a fair amount of enquiry by English and Australian investors, and repeated overtures were made to your directors with the objecu of placing our property on the market. Your directors felt that it was inexpedient to delegate their functions or to allow our enterprise to be "hawked,* and therefore declined to place our interests in the hands of any of the wouldbe intermediaries who approached them, at the same time intimating their readiness to negotiate with possible buyers of assured financial status. In June last we were placed in touch with a London syndicate through the medium of responsible people in Auckland, and a considerable correspondence resulted in our placing a price upon the concern; however, early in August, a downward movement occurred in the London market, which terminated negotiations for the time being. In July our manager (Mr. Balloch), who had remained in charge of the works and plant at a reduced salary, intimated that owing to a death in his family it was necessary that lie should revisit the Old Country without delay, and he accordingly terminated his engagement, leaving here in August. Shortly after his departure, negotiations from London were resumed, and on the Auckland correspondent cabling that Mr. Balloch was on his way Home, a desire was expressed to meet him on his arrival in England. We accordingly communicated with Mr. Balloch at Port Said and sent him detailed advices to London, where he arrived early in this month, and has since been in communication with the parties - referred to. In response to other advances we have supplied precisely similar information to another English group desirous of investin'g in the Taranaki oil-field. It is probable that early in the year these negotiations will result in definite business, and your directors hope then to have to ask the shareholders' confirmation of a contract which will be satisfactory to all concerned. To put it tersely, our aim is to secure for our fellow-sihare-ers and ourselves a profit on our investment, and to ensure the development of our enterprise under the most favorable conditions. Information has been received in New Plymouth that during the present week Dr. Henry, who is said to ©ne of the greatest living authorities on petroleum, leaves England for New Plymouth with a view to reporting on the prospects and conditions of this oil-field. His visit is being made at the instance of capitalists who contemplate operating here. At the forthcoming meeting of the Company, Messrs. F. P. Corkill and G. W. Henderson retire from the directorate by effluxion of time, but are eligible for re-election. Mr. G T. Mills, public accountant, who has been our auditor for the last two years, is available for re-appointment in that capacity.