THE OILFIELD.

Taranaki Daily News, Volume LIII, Issue 307, 22 May 1911, Page 4

THE OILFIELD.

GREAT DEVELOPMENT AHEAD ADVENT OF BRITISH CAPITAL. TARANAKI PETROLEUM COMPANY'S INTERESTS PURCHASER The Taranaki Petroleum Company on. Saturday received cable advice from' Air. J. D. Henry, the oilfield expert, who recently visited Taranaki as the representative of English capitalists, to the effect that it had been decided to aecept the terms offered by the company for the sole of its properties, plant, and interests to a London syndicate. The news was received with many expressions of pleasure by shareholders and non-shareholders alike, the satisfaction being not so much that the concern had been sold as that it had been found possible to persuade considerable outside capital to assist in the development of a primary product, whose existence had long been located but whose existence in payable quantities had been demonstrated comparatively recently as the result of the dogged determination of the local company and its expert staff. Not unnaturally there was much enquiry as to the terms of the transaction and discussion as to the position of tile present shareholders: as to whether'it was a straight-out sale for eash, or whether the shareholders would be able to retain an interest. A satisfactory feature was that in every ease that came under our notice the .shareholders desired' the latter course, which is generally believed to be the case. It is not nogsiblc, however, to make any announcement yet, but we have the assurance of the directors that the interests of the shareholders have been well conserved, whilst still making the venture an attractive one for the investment of capital. The directors will doubtless make public the facts in this matter when the proper time arrives, which will be, doubtless, when they arc authorised to do so hv the purchasers. Meanwhile, the term's are not disclosed. THE NEGOTIATIONS.

• Messrs Watkins and Fox, of New Ply. .mouth, have for sonic few years been in direct communication with mnnv o£, the largest "oil men" and financiers in London, through their London agents, Messrs Rodyk, Williamson and Fox, wha in the first place induced Mr. G. Adams, through his friend Sir Bo\erton ltedwood, to viaiWhe oilfields of Taranaki a few years ago. This, we may say, »vag the commencement of London capitalists taking mi interest in Taranaki oil. At that time, some four years since, money was hard to obtain, owing to the financial crisis in America, which prevented capitalists then from taking hold of the industry here. Since that time. Messrs Watkins and Fox have bpen in constant communication with the right people in the Old Land, and have pointed out the many advantages of securing an interest in this district They have been kept well posted as to every development on the loca) field, not only by letters sent in answer to direct queries from Home, but also by means of articles appearing in the petrolrtim and financial journals dealing with the possibilities of the industry, (he exceptionally fortunate situation of the oilfield as regards the port, and the commanding situation of the port itself, whilst they have also bce» aware of the progressive policy of New Plymouth in regard to the development of the port for ocean-going traffic. As just stated, these oil men asked for and were regularly supplied with information concerning the field, and expressed themselves as so satisfied with the nature of that supplied that they stated* when time was opportune they would be prepared to consider Taranaki as a field for their enterprise. One and all of them expressed a strong opinion as to the ninny advantages of placing their money in British possessions, where a security was guaranteed which would not he obtainable on foreign oilfields. It was towards the end of 1909 that Mr. Watkins got into communication with Mr. J. D. Henry, and that gentleman wrote that he was so impressed' by the nature of the information sent Home that, he intended to visit Taranaki during the following year, adding: "New Zealand will come well to the front before tho autumn. It is impossible not to attach real importance to your oilfields, when one reads the geological reports of Dr. ,T. M. Bell." Following on this, the matter of acquiring the Taranaki Petroleum Company by Mr. Henry's group of men was suggested to these capitalists by Messrs "Watkins and Fox last May, and the shareholders in the company have much to thank the firm for in the "deal" which has just taken place. They must also thank the Government, and especially the Minister for Mines, for the action they took in having the first geological survey made of our oilfields. The London financiers insisted on official data of this kind being placed before them, as well as reports from their own experts, before they would invest capital in such undertakings, and Mr. Henry (London's well-known expert) therefore visited us, which visit brought about the transaction just announced.

FUTURE DEVELOPMENT. Future development depends very largely, of course, on the amount of capital that will be at the disposal of the new company. We are given to believe that the capital will be very large, and will be quite sufficient for a rapid development of the industry. The management will not be hampered for want of funds, which has been the painful experience of the local companies in the past, and which has been the reason for transferring the local interests to a larger concern. A certain amount of "wild-catting" will be necessary; that is, boring in localities where as"vet the existence of payable oil deposits' is not, proved, but the information gained in such bores must prove of the utmost importance to the geological expert who has to trace the direction of the field. Tt. can fairly be assumed that the management of the company will be of tho best, guided bv experience in the marvellous petroleum development of recent years. The best expert knowledge available, and thoroughly modem plant—no one pretends that (lie prospecting plant here has been of the most modern type —will be at the disposal of the company, and file -success of the field should be assured. There is one thing very certain, that the new people can depenft on every local assistance in their future operations, and fanners and landholders will place no obstacles in the way at the in-, ception of n new nnd important industry. LOCAL BENEFITS. Tt has been found that where petrofeum developments take place they bring In their train population and industries, thereby enhancing the values of propertv throughout the field. Onlv two or three, months ago, in March of this year. ''l-200 an acre was paid for land alongside a proved oilfield for the purposes of further development of the Santa Maria OiK flelfU Co. This, of course, was in the locality of the oil "gushers" of California, hut there is no frainsavin" th« fact that values in this district will be (Continued on page 8.) 'f