TARANAKI PETROLEUM CO.

Taranaki Daily News, Volume LIV, Issue 62, 4 September 1911, Page 4

TARANAKI PETROLEUM CO.

CABLEGRAM I'lloM MR. CARTER. THE XJJW COMPANY'S CAPITAL i'OUTIII'OMIN*!. On Saturday a cablegram was received from Mr. Carter, who is in London in connection with the silo of the Taranaki Petroleum Company's undertaking to the Oil Tru-t Company, l.td.. to the ell'ect that tlht capita! of the new company is underwritten sulViciontly to provide tho purchase money for tile undertaking and for a large proportion of the new company's working capital. The whole o£ thin will 'he guaranteed before the company goes to dotation. 'J'his mean* that tiie Taranaki Petroleum Company's shareholders are now sun: of their money, and sure of a continuance <>l the oil prospecting ami development which the company's .-canty capital was finsurcdly becoming insufficient to carry on with sufficient vi'_'or.

The present stocks of nil have been sold to the new company lor fourpence a gallon, which is a \cry imte'.i better' price than woiiii! have bum obtained from the Xew Zealand <!overn:nent had it closed with th;> company's offer, made recently. Presumably the company takes over all the oil to lie produced from the bores from now until the date of the actual completion—the -inning of the agreement, and the payment of the purchase [.rice will take place in New Plymouth—probably about November. The bores are now producing at the rate of aibout 140 barrets a week. Each barrel contains 40 gallons, and the value ot this ait 4d a gallon, is thus C!M (is 8d weekly. The £lo,l.<H) bonus is still dangling in front of the local company for the striking of oil in Xo. 3 bore. Progress there has been le-s rapid than was hoped, imuiy difficulties having had to be overcome, but. willi ordinary luck, there should be that £IO.OOO for*distribution amongst the -llarelioidcrs, as well as the second £'2-jOO ot the Government bonus for the production of cnide petroleum.