PETROLEUM NEWS.

Taranaki Daily News, Volume LIV, Issue 139, 7 December 1911, Page 2

PETROLEUM NEWS.

THE TARANAKI COMPANY. Following is the directors' report, to be placed before the annual meeting of the Company to be held on Thursday, the 14th inst.:— As a prospecting oil company, your directors have much pleasure in stating that since their last anual report oil has continued to flow at two of the bores without any mechanical aid and without any practical decrease. This has seldom, if it has ever, been known in any other 1 oilfield. Bore No. I.—The directors for several reasons considered it advisable to discontinue work at this bore until a later period. This well is bored at a depth of 2200 feet. Bore No. 3.—This well has continued to maintain its output both in regard to quantity and quality for a period of about two years, and at this date is still freely flowing . The depth of the bore is 3030 feet. Bore No. 3.—During the month of May oil was struck at a depth of 2640 feet, and has since been flowing continuously. On several occasions there has been verystrong outbursts of gas and oil, going many feet over the top of the derrick. The bore is down to 4015 feet. Bore No. 4. —Tliis well having been drilled to a depth of 1701 feet, boring was discontinued, the operations of the staff being concentrated on Nos. 3 and 5 wells. Bore No. s—The staff has been principally employed at this well. The manager reports that the position at this , time is such that prospects of reaching payable oil at an early date are very promising. The well is down to 2038 , feet. , _ Oil Won.—The quantity of oil won during the year from the two wells was 139,015 gallons, as against 70,884 gallons for the previous year, or nearly double the quantity. Government Bonus £2soo.—As most of the shareholders are aware, the Company has received the Government bonus for the production of the first 250,000 gal- { lons of crude petroleum won in the "dominion. During the year the company has been under the efficient management of Mr. L.' Keith, who has carried out his duties in a careful manner. I Shareholders were informed bv circular in June last that Mr. J. D." Henry, the British oil expert, had visited the company's properties. As the outcome of Mr. Henrv's visit, Mr. C. Carter, the chairman of the company, at the request of Mr. Henry's principals, proceeded to London to execute an agreement for the sale of the com-i pany's properties to British capitalists. ! Mr. Carter has returned to the Domin- i ion after having completed the agreement. These negotiations have been°car-, ried out by Mr. Carter to the entire' satisfaction of your directors. Mr. ,H. J. Brown, the chairman of the British Empire Oil Fields, Limited together with Mr. Carter, arrived in New Plymouth on November 30. Mr. Brown has come to complete the arrangements for the purchase of the company's property. Legal documents in connection with' the notation of the company are expected, to arrive from London by eariy mail. Mr. Brown will remain here until these arrive and all business in connection with the flotation is completed. The new company, to be called the Taranaki (New Zealand) Oil Wells, Limited, will hive its head office in London • and several influential capitalists haveexpressed a desire to join the London . Board of Directors. With a strong working capital, the installation of the latest up-to-date drilling plant, and the erection of a refinery, vour directors feel confident the new company will be the means of extending and developing the oil fields of Taranaki. Acquisition of Shares in the New Company.—Your directors, believing it to be '" th « interests of the shareholders, cabled to the chairman when in London asking him to, if possible, arrange that the present shareholders should have the right to acquire additional shares in the new company should they desire. After some negotiations, Mr. Carter cabled that he had been able to arrange that the shareholders in the Taranaki Petroleum Company, Ltd., should have a prior right to apply for a certain number of shares in the Taranaki (New Zealand) Oil Wells, Ltd., full particulars of which will be .given at the annual meeting of the compny, with Mr. H. J. Brown, the chairman of the British Empire Oil Fields Limited, will he present. Mr. Carter! the chairman of the company, will also give an account of his visit to London in the interests of the company. The business of the meeting will be carefully reported and a copy sent to shareholders. The retiring directors are Messrs. C. E. Bellringer and H. Okey, who have given the requisite notice of their intention to again offer their services. Auditors.— Messrs. Hugh Baily and C T. Mills, the auditors for the past year are eligible and offer themselves for reelection. TARANAKI OIL AND FREEHOLD i COMPANY. LTD. '' Following is the report of the TaranaJti Oil and Freehold Co. to be placed before the annual meeting of shareholders on the 22nd inst.:— In presenting the annual accounts of our little company, your directors have to report a period of inactivity at the works and of quiescence (none the less anxious) on our own part. Early in the year Mr. J 1). Henry, of London, paid us expected visit to the Dominion, and the views which he then publicly expressed determined this board to do nothing to force a market for our interests, but to await the outcome of the negotiations in which his principals at Home were at that time 'engaged- with ' our neighbors the Taranaki Petroleum Company. We ascertained from reliable sources m London that oil men generally were delaying operations pending Mr. Henrys reports, and that much would depend upon his recommendations tnder these circumstances, and ever bearing m mind the .fact that ours i s the only bore in Taranaki outside of the Moturoa -area, which has really „ oi 0.l (for the last seam passed through was estimated by Mr. Iklloch at four barrels per day), we decided that it would be unwise to seek either sale or flotation at present, and have therefore refrained from attempts to realise lrobably mo.st of our shareholders arc aware that the purchase 0 f the Taranaki 1 etroleum Company's interests, is now being concluded; that their chairman has been Home to confer with the and has this week returned to .New llymouth accompanied bv the chairman of the British Umpire Oilfields, Ltd., who have acquired all the assets 0 the concern and are about to erect a rehnery and develop the boring on a large seale. Mr. Henry is al s0 "comi»" out next month on behalf of his London friends-and will remain S o„ro time there is every reason to anticipate that before the new yew is far advanced oil matters will be fairlv bri.sk in Tin iwki, and tliat 1«J12 will U-ii a.i imlusii'v launched which is destined to be productive of much wealth to our country lhe accounts speak for themselves and call for no comment, except that expenses kave been cut down to bedrock. It will interest shareholders to learn that our

late manager, Mr. Balloch, is at present filling an important position under an English oil company operating in Venezuela, South America. We hope that soma day lie will return to New Zealand and participate in the prosperity which we helieve is in store for us. Messrs. Browne and Messenger, directors, now retire in accordance with our articles of association, hut are eligible for re-election and' place themselves in your hands. You a.rc .required to elect an auditor, and Mr. Mills.intimates his willingness to again serve the company if you desire it.