WONDER OF PETROLEUM WORLD

Taranaki Daily News, Volume LIV, Issue 177, 25 January 1912, Page 4

WONDER OF PETROLEUM WORLD

NO. 2 WELL, MOTUROA. NEW METHODS OF DRILLING. REVOLUTIONISING THE INDUSTRY. "The flowing of your No. 2 well at Moturoa for a period of two years of its own accord is an unheard of thing; it is, I truly believe, the wonder of the petroleum world."—Thus Mr. B. J. Weger, of the firm of Herman and Weger, manufacturers of the New Zealand Combination Ilotary drilling machinery. Mr. Weger is on a short visit to New Plymouth and through the good oflices of Mr. A. E. VVatkins, who has taken a close interest in matters petroleum for years past, our representative was able to meet and 1 get into conversation with him for a short time yesterday. Mr. Weger, it might be mentioned, visited New Zealand last year, after hearing something of the possibilities of petroleum winning here, and so satisfied was he with the prospects that he arranged to return find extend the firm's manufacturing operations to the Dominion. It is a case of "getting in early" with this firm, who have put in plants in every oil field of importance in the world. What Mr. Weger (who has been interested in petroleum for the past 27 years) thinks of the possibilities may be gauged from the fact that he has thought them good enough to warrant him in going in for manufacturing his patent outfit in New Zealand. "I believe," he said, "you are in for big things in New Zealand, but particularly in Taranaki, where you have proved the, field in the most conclusive fashion. Take No. 2 well, flowing without cessation as it has, of its own accord, for two years; it is an unheard of thing in' the petroleum world. But I don't believe you have struck the proper oil measures yet. The gas pressure, in my opinion, is holding back the oil. I have drilled a great many wells throughout the United States, and struck oil giving 8000 to 10,000 barrels .a day, but not one flowed of its own volition for longer than eight or ten months. Pumping had invariably to be employed." Mr. Weger went on to say that when he returned to America and told the people there that New Zealand possessed the finest oil indications he had come across they simply would not believe him. They said that if things looked so good as he described, why was it that English capitalists were not into the field instead of investing their money in Californian and other American fields? He met Mr. Harry Bunger, who used to have charge of the Omata bore, and he had the same experience. The people simply would not give credence to what lie had to say regarding the indications and prospects of this local field. " "I predict," said Mr. Weger, "that as soon as the present British-New Zealand company gets under way, you will have the Californian gentlemen swarming into Taranaki, and when they get to w«rk they will turn New Plymouth inside out." Mr. Weger's firm are the inventors of a system of boring that has revolutionised the methods of petroleum winning. There is, it appears, as much difference between the old and new methods of boring as there is between the Taranaki bullock dray and the modern motor car. Those who have been in close touch with the' operations carried on at Moturoa have a good idea of the great difficulties encountered. For instance, when a quicksand pv soft formation was struck, the casing was frequently jambed, necessitating the lifting of the pipes, which was a long and weary process. Under the new system the casing is rotary, machinery at the top revolving the piping, it the bottom of which is attached what is called a "trip bit," held in position by a shoe. The piping is therefore the drill. When shard material is met with a fishing tool is put down and the "trip bit" extracted and a cable, tool applied. To make the change takes only 30 minutes, as compared with 36 hours for 3000 ft. under the old method. If it is found necessary, poles can be used.

Again, there is no under-rimming required. A bit attached to a cable tool cuts a hole two inches greater in diameter than the pipe. There is nothing therefore holding or impeding 'the cas--1 ing, which revolves smoothly. Under the old system, extra piping was required for rotating with. Under the new the I whoje work is performed by the rotating j casijig operating in the hole. Under the old method it was necessary ! every few feet to lower a pump to extract the cuttings. This is done away 1 With, By the rotary system the material is forced up behind the piping by means of pressure pumps, which have a pressure of 600 head. If quicksands or fcaving formations are struck, mud and clay is pumped down the inside "of the piping by means of the pressure pump and forced up on the outside, where it ! forms a mud or day wall, thus prevent- | ing aiiy caving taking place. Shutting off the water, which has been such a difficult matter at Moturoa, asumost of i us know, is overcome in a similar way. The mud or clay forms a jacket in which the pipe can move with freedom or ease and without dangeh In some cases it is found necessary to pump in concrete to make a concrete wall. The piping is worked by a machine-driven rotary table at the head of the bore. This table connects or disconnects the casing, and thus obviates the laborious work en- : tailed by the use of poles or jacks. The outfit is much lighter and less : cumbersome than the old style. The firm claims that a plant capable of boring to 5000 ft. or more is less than half the weight of any other deep-boring plant at present on the market. The plant is built of iron and steel, no wood being used; it is portable, ,and can be mounted on wheels, which , enables it to be shifted about with f ease and economy. Besides, they are easy to erect. Four men can put them together in the course of three days, and have them in running order. The present rigs take a long time to erect, and are difficult to shift. The firm, as we stated, is manufacturing in New Zealand, having arranged with Niven's Machine Company, Napier, to build the machines. Already a start has been made, and Mr. Weger believes that within twelve months fifty will be required in New Zealand. To prove the success of their efforts, the firm is prepared to contract for bor-' ing. They have no doubt at all that a •hole, 3000 ft. deep, can be put down in six months, and at a low cost. What this means to the industry can be understood when we remember how long it took to put down some of the wells in tnis district. To Show the bearing improved machinery and improved methods have upon oil exploitation, Mr. Weger instanced the case of the well-known Kern river dis-1 tnct, California, Fourteen years ago, when lie first became acquainted with that district, wells driven to 3000 ft. took tlnee or four years . Under the rotary system the same wells are driven in sixty or seventy days. The new system ,has quite revolutionised this field, as it has fields in other parts of the United States, and as it undoubtedly will in Taranaki, where we have yet to see modern methods applied. On the Kern river field, where fourteen years ago there were but a few drilling plants, it is now transformed into a veritable fore? t of rigs, extending sixty miles one waj and thirty miles another. Mr. Weger says he will not be surprised, by the

way things are shaping, if a similat transformation is effected in Taranaki before long. His firm operate in all parts of the world, but Mr. Weger confesses that the potentialities and possibilities of no part have impressed him so favorably as New Zealand's, and in particular New Plymouth's. TARANAKI COMPANY'S OPERATIONS Yesterday Mr. J. D. Henry and Mr. 11. J. Brown, with Mr. Weger, of the petroleum firm or Herman & Weger, paid & visit to Moturoa and inspected the operations at the different wells, particularly at No. 5. At the latter well the water has been cemented off, and, according to the manager, is in a perfectly satisfactory condition, and drilling work is to bo re-started at once.

THE NEW COMPANY. It will be remembered that the underwriting of 55,000 shares was offered by the British company that is purchasing the Taranaki Company's interests to local shareholders. These have been all taken up, and applications for further underwriting are being considered One gratifying feature of the applications i 8 the confidence shown in the future at the industry by the fact of local shareholders making a big proportion of their applications "firm," which is to say "that they desire the shares in the new company issued to them)

WHAT THE BRITISH COMPANY WILL MAKE. Interviewed by our representative yesterday in regard to the new company,. Mr. H. J. Brown, chairman of directors of the British Oil Trust, stated:— ■' : "I would like to correct a statement that has been made as to the possible profits of "the British Empire Oilfields, Limited, in the formation and promotion of the Taranaki (New Zealand) Oil Wells, Limited, Lawyers often appear to have a somewhat roundabout way of framing agreements, and it is possible that in those entered into by the British Empire Oil Fields, Limited, and the Taranaki Petroleum Company, Limited, are not quite as clear to the lay mina as they might be. In plain language they are as follows: The British Empire Oil Fields, Limited, undertakes to form the Taranaki (New Zealand)' Oil Wells Limited, and procure underwriting foV 150,000 shares (paying in the meantime the preliminary expenses) for the sum of £50,000, half cash and half shares The preliminary expenses in the formation of the company are estimated at £35,000, which sum is set out in the agreement. Should all this £35,000 not Tbe spent, the balance goes to the new company, the Taranaki (New Zealand) Oil Wells, Limited. On the other hand, should the sum of £35,000 be exceeded, the British Empire Oil Fields, Limited, have to pay the excess amount out of the £50,000 coming to them, so that the gross profit that can b§ made by the British Empire Oil Fields, is £50,000' only, and out of this they have already incurred considerable expense which they do not intend to ask the new company to pay. Thus the positipn is as follows:

£ Nominal capital 400,000 Shares held ih^reserve..... 50,000 £350,000 Amount payable to the Taranaki Petroleum Co., Ltd: 105,000 Amaunt payable to the British Empire Oil Fields, Ltd 50,000 Cross allowance for flotation expenses 35,000 £210,000

This leaves £210,000 for working capital and the general purposes of the company, plus any surplus that may be saved out of the £35,000 allocated to .the expenses of the issue of the company. I hope that this statement wilt make it impossible for there to be any misunderstanding with respect to the profits of the purchasing company. I am exceedingly sorry that any misunderstanding should have' occurred, as I have always deemed the financial part of this business to be most satisfactory to the directors and eminently fair to the shareholders, whose interests they have so carefully protected."