TARANAKI PETROLEUM CO.

Taranaki Daily News, Volume LIII, Issue 318, 3 June 1911, Page 4

TARANAKI PETROLEUM CO.

SALE TO THE ENGLISH GROUP. The directors think that it is advisableat this stage to place before shareholders the present position of the negotiations for the sale of the company's properties. It is as follaws:— As most of the shareholders are aware, Mr. .(. D. Henry, the British oil expert, visited our properties during last February. Air. floury had several .utes> views with the directors and finally he took to London with him the following conditions upon which the company would eell its property: "That with a view of affording every facility to Mr. J. D. Henry in hisefforts to establish the oil industry in Taranaki, the directors resolve thayt (unless its undertaking has been sold or agreed to be sold in the meantime), upon payment of £2OOO in cash by way of deposit on or before the 21st day of June, 1011, the company will Rett its undertaking (excepting moneys due and to become due and oil won) at theprice of £ 100,000, and a further sun* of £IO,OOO if oil be struck at No. S bore before completion of purchase. The purchase money td be one-half fa cash and one-half in fully paid-up shares in an approved company, whose principal object is boring for and obtaining petroleum, and having a nominal capital of not exceeding £400,000, with a subscribed capital of not lees than £IOO,OOO (in addition to shares . allotted as purchase money), the purchase to be completed by September 30, 1911, or deposit paid to be forfeited as liquidated damages." Almost immediately upon Mr. Henry's arrival in London the company received the following cables from him: "Everything has been reported to> my group (meaning principals). Will do business without loss of time. Ths whole of my time will go into the business. Will return as soon as possible to Taranaki to organise new works. Will pay £2OOO deposit to secure option six months. Urge upon j you the necessity of Mr. Garter (chairman) to proceed to London as soon as possible." The chairman Accordingly left New Plymouth for London on June 2.

The directors having agreed to the extension of time until November 30, and the deposit having been lodged in the Bank of New Zealand, London, a further cable was received from Mr. o. D, Henry urging the necessity of the chawman going to London for the purpose of facilitating the completion of the necessary detail arrangements and signing the contract. Approximately the following is the position at the present time: £ 6. <L

Ordinary shares, 86,870 at 20s (fuuly paid) 86,870 0 0 Preference shares, £1 eachAmount called upon, 10,504 at 6s 3,161 4 0 0047 at 3s 907 1 0 90,928 5 O Amount to be paid when option exercised (£50,-'- , ' 000 cash, shares £50,000) 100,000 0 0 Additional amount to be 'paid if oil struck at Bore No. 5 10,000 0 0 Oil in stock, 250,000 gallons (approx.), at 2d per gallon 2,084 0 0 Cash in hand and moneys due to the company ... 3250 0 0 £115,334 0 0 This is not taking into account the cost of continuing the company's operations. Shareholders must understand that these figures are only approximate, and are given to them so that they may fairly guage the position. C. E. BELLRINGER. Acting-Chairman. No, 3 well at Moturoa is now down to a depth of 3965 ft, and the country being passed through is much firmer, with fair showings of oil. At No. 5 the 8-inch casing is now down to 1840 ft., at which depth the bore will be reduced, and 6-inch casing is now being put In. No. 2 is flowing about the same a« usual. During May there were 550 visitors to the works, including the American Consul, Mr. Baker, and Mr. Smyth, representing the Ironsand Syndicate. Another consignment of oil was shipped to Auckland yesterday.