DOMINION OIL INDUSTRY.

Taranaki Daily News, Volume LV, Issue 98, 11 September 1912, Page 6

DOMINION OIL INDUSTRY.

THE FUTURE OF TARAXAKI SPEECH BY LORD RAXFURLY. [Auckland Herald's Correspondent.] London, August 2. In the opinion of Lord Ranfurly, Xew Zealand is to have a big future as an oil country . He expressed this view at t)he statutory meeting of the Taranaki (N.Z.) Oil Wells, Ltd., which was held on Monday, at Winchester House. Aa chairman of the board, Lord llanfurly presided over the meeting. After the report had been adopted, the chairman said there was no doubt many of them would wonder why so few shares had been taken up in England on the flotation of this company. There was a large number of other companies floated 011 the same day, -but they might congratulate themselves on the fact that the people who knew what the Taranaki oil wells were capable of doing—the men on the spot —backed their opinion by taking somewhere about 173,000 shares, as against the 11,000 or so that -had been taken in this country. Here there were quite ii small number of shareholders, but on the Xew Zealander register they had 5000, showing that many of the people of that district probably backed their opinion as regarded the value of the Taranaki oil. It was only three months to the day since the flotation, and during that period tlie board had ordered a refinery plant,

THE REFINERY AND ITS PROSPECTS Over 100 tons of that plant was at the moment on the water. The balance would be sent out as quickly as it could be manufactured, and it was firmly hopsd that the refinery would actually be working by January or February next. An expert manager had been exgaged. The latter saw the builder and contractor for the refinery, went over all tihe plans and details and then left for New Zealand with a view of putting in foundations and superintending the (Tpc.r.ion. Mr Miller should be in Mew Zealand by now. They had also purchased a rotary drill, thoroughly up-to-date, and that should be leaving New York almost immediately, with two expert drillers accustomed to the particular class of work , News from New Zealand stated there was a large number of small individual companies starting to bore for oil in the same district. Probably theirs would be the only refinery, and it was tjie. chairman's opinion that tihe dividends of their company would come from the refinery prior to their coming from t.lje...lwring for oil. A well took a certain amount of time before it ran sufficient oil to pay expenses, whereas the Tefinery "which had been sent out wag capable of dealing with 10,000 gallons a day—possibly with 10,500 gallons. It was being built that it could, at the least possible expense, be enlarged at any time so as to double the capacity, if necessary.

I The question at- the moment was: | Should they have sufficient oil to keep the refinery going at 10,000 gallons a day? Some months ago the company had 340,000 gallons in stock, all theii storage was full, and their wells itop<ped down as best possible. With that stock in hand, the telegraphic news that the wells were still producing more, and with the knowledge that -other local companies were also boring and that oil would come to them for refining, it might fairly be taken fo- granted that the refinery would be kept busy.

ESTIMATED PROFIT. From information supplied by Mr Millar, the chairman had made out roughly what the probable profit and loss might be; they had naturally taken as their basis the analysis of the oil. An analysis made out on .the large scale of a refinery exactly iu the same proportion, and therefore one could not expect quite as large results as would appear on paper. From 10,000 gallons of crude oil there should be a working profit of about £2OO. Well, that was in a day, and even supposing it did not work out at more -than half that, the company would be doing an exceedingly good thing for the shareholders.. He trusted it would be (iossibk to look to the profit from the refinery as a certain profit. From the oil wells he also hoped that in the future they would get richer wells in point of supply than those of to-day. There wa3 no reason why they should not.

Lord lianfurly said he knew the country and he knew the particular -wells. He felt sure that New Zealand was going to turn out an oil country, and, as such, would be of immense importance to the Empire, and its position should enable it to be most useful for this country's men-of-war and shipping. No questions, were asked, and the chairman declared the meeting over.

THE REPORT. 1 From the' report- the following information is obtainable:—The company was 'islrred on July 21 last, with a. nominal capital of £400,000. The total number of sliares allotted is 243,383, of which 50,000 were issued fully paid up as part of the purchase price of the property, and 184,383 were alloted payable wholly in cash. The total amount of cash received by the company in respect of sliares issued wholly for cash is £43,382 ss. Receipts on share account total £43,382 5s (England £2770 ss, New Zealand £40,012). At the Bank of New Zealand in London there is an overdraft of £1764 12s 7d, less bank balances in New Zealand, £725; at Parr's Bank, London, £2!K) lis lOd; cash in hand, £1 las 7d; total, £IO4O 7s ->d; leaving £784 5s 2d to be added to the receipt}, which total £44,106 10s 2d. Details on iAe uayment side are: Purchase price (on account), £19,000; plant and machinery, £1000; vendors (for underwriting, commission and preliminary expense*), £?0,000; stamps on conveyance, license and brokerage, £3844 12s Od; cablegrams, postages, travelling expenses, bank charges and stationery, : .12201 17s 8(1: total, £44,106 10* 2d.

Tlio preliminary expenses of the company are estimated at £IO,OOO. The directors of the company are: The Earl of Banfurly (chairman), Major Dudley Alexander,' C.M.G., Mr. Joseph Brail a ford, Mr. Andrew L. Horner, K.C., M.P., and Sir John L. Harrington. Mr. J. D. Henry ii technical adviser.