INGLEWOOD OIL COMPANY.

Taranaki Daily News, Volume LIV, Issue 151, 22 December 1911, Page 2

INGLEWOOD OIL COMPANY.

ANNUAL MEETING. The annual meeting, of the Inglewood Oil Boring and Prospecting Company was held at the Town Hall last evening, when there were sixteen shareholders 1 present. Mr. T. Furlong, jun., presided. REPORT AND BALANCE-SHEET, The secretary read the report and balance-sheet (previously published in these columns). Mr. Furlong, in moving the adoption of the report and balance-sheet, said:—

Some twelve months ago, when we last met, I then indicated that we were just about negotiating with an English syndicate through a financial agent in Wellington of established repute for the sale of the company. We—that is, this gentleman and ourselves—had mutually agreed on the terms which were to be submitted to the people at Home. This was in December last. The terms were accordingly submitted to London, and as regards the standing of the London sydnicate, our agent wrote: "You may rely on it that the people at Home with whom my London agent is in touch are wealthy, and if they undertake to float the company it is as good as done, as they do all their own underwriting." Subsequent reports showed, however, that the financial market at Home during the first few months of this year was anything but a favorable time for the successful flotation of a proposition of this nature.

This was followed by the Coronation, industrial disputes and rumors of war. which all had a tendency to delay th» issue. For a time, therefore, things appeared to remain at a standstill, but in June last cables were received from Home announcing the registration of the Inglewood Oilfields, Ltd., and with the information I had at my disposal at the time I naturally came to the conclusion that this was our proposition, this company dealing with certain areas of land in and around Inglewood. Later information, however, indicated that it was an entirely different proposition, and was not in any way connected with our own.

Certain complications had arisen re the options of the two companies, and this had the effect of our London people turning down our proposition for the time being. As matters stand at present I am clearly of the opinion that it is to the advantage of our shareholders that the matter was deferred for the time being, because in the meantime your.directors have been able to re-open negotiations—which we have every reason to believe will be carried through successfully—that should prove beneficial to the shareholders! and to all interested in the company. These negotiations were carried through by Mr. Elwin, one of our directors.

Mr. Elwin., at my request, interviewed our agent in Wellington, and they agreed to the following terms:—That £16,000 should be available for prospecting right away, that in the event of the prospecting being satisfactory a new company is to be formed to work the properties, that there shall be paid to the present company, as part of the consideration, a sum in cash of not less than £6780J the balance of the consideration 'bo be fully paid-up shares. Thi9 w«uld mean that our additional share capital would be £13,560, or equal to two additional shares for every one held. The new company is to be of not less than £50,000 working capital. To ensure the success of the floating of the company we have given to the London people through our Wellington agent a firm offer for three months.

I think it would be advisable for me to make a few remarks about our Mokau properties, which are undoubtedly a very very valuable adjunct to our proposition. Our options over that property ceased when Mr. G. H. Stubbs disposed of Ms interests to the Palmerston North and Napier syndicates, and it then became necessary for us to re-open negotiations with his successors to secure a renewal of our former rights over that area. 'This, I am glad to say, has been successfully accomplished, and I feel indebted to Mr. Stubbs and to Mr. J. H. Quilliam for the valuable assistance they have rendered the company in this connection. We have now secured a renewal of rights for twenty-one years, conditionally on one bore being put down to a depth of 1000 ft within two years. Mr. Cocoran, F.R.G.S., of Dunedin, made a geological report of the Mokau-Aw&kino district about five years ago, and reported having found seepages of oil there, and Professor Park, a geologist connected with the Otago University, also holds the opinion that the features of the country are distinctly favorable. Regarding additional areas which have been secured at Inglewood, this h&s I»ea brought about by the assistance of Mr. T. C. H. Nicholls, a director of the eompany, and one who is interested very much in the development and resouwtes of the district. This gave us an additional 5000 icres at Inglewood, so that with the former options we have altogether about 8000 acres in this locality, or, with the Mokau. 20,000 acres in *il. This additional area in the Inglewood digtriot has also been given ooHdjtkroaily on operations being started by April next.

Turning for a moment to the financial position of the company, you Will find on reference to the balance-sheet that our expenses during the year have not been heavy, the sum of £BS representing the whole of the outgoings during the twelve months. This includes office expenses, salaries, advertising and stationery, annual license, and sundry creditors. Our grants stand the same as last year, but, of course, they are worth much more than the amount shown on the balancesheet. With regard to the condition of the plant, that at Norfolk road has been looked after by Mr. Burgess, and we have a certificate from Messrs Nixon and Grant, engineers, and Mr. D. Watson that the plant is in good order. Regarding the general prospects they appear to be very hopeful. The visit of Mr. J. D. Henry to New Zealand and his very favorable reports on the prospects of the New Zealand oilfields, the visit of Mr. Carter to the Old Country and his subsequent return in company with Mr. Brown, chairman of the British Oilfields, Ltd., shows the attention that our fields are receiving at the hands of British capitalists, and this will, I have no doubt, act as a great impetus to the early development of the industry, and success should soon be accomplished.

Tn conclusion, I may perhaps be pardoned for saying that although our little company has not actually struck oil, we have the satisfaction of knowing that whether we recover or not the money we have spent, we have yet played a part, even if a small one, towards the development of the oilfield which is believed to exist in Taraaiaki. Had not local enterprise and local capital persevered with the efforts to And oil it would probably liave been many years before outsiders interested themselves in the field. Mr. Brown, the gentleman from London who is now here to complete the purchase by a British company of the Taralinki Petroleum Company's undertaking, remarked the other day that money spent in boring dry wells in an unexplored field must not be regarded as wasted. Therefore, I say that our efforts may be counted to our credit, even though thev go no further. But I believe that the negotiations we have now set on foot

will result in something more tangible to ourselves and that our enterprise and patience will presently be amply rewarded, for the rights we hold may eventually turn out to be of very great value With that hope, I beg to move the formal adoption of the roport and balancesheet. Mr. Fleetwood drew attention to the amount owing for calls, and considered that the shares should be forfeited to the company. The chairman said they could sue for arrears, and he suggested leaving the matter in the hands of the directors to deal with. The chairman, in reply to Mr. Blythe, said .there were items to adjust with their solicitors, and that the £lO shares were equivalent to five £2 shares. On the motion of the chairman, seconded by. Mr. Watkins, the report and balance-sheet were adopted. DIRECTORS AND AUDITOR. Messrs. G. Ahier, G. Ramssn and J. J. Elwim were rs-appointed directors, and Mr. H. Baily as auditor. Mr. Elwin said he had an interview with the agent at Wellington as to the success of the future syndicate, and the prospects looked well. •From what he heard about Mokau, he thought it would go on faster than Inglewood. The meeting was adjourned until Thursday next.