PETROLEUM.

Taranaki Daily News, Volume LV, Issue 121, 9 October 1912, Page 4

PETROLEUM.

TARAXAKI (X.Z.) OIL WELLS, LTD.

The following progress report is being forwarded to shareholders of the Tarnnaki (X.Z.) Oil Wells, Ltd. by Mr. C. Carter (the chairman of the Advinorr Board):-- '

We have pleasure in submitting herewith a concise statement dealing with the progress made on your property since the formation of the company on May 17 of this year. General.—When the present company acquired this property, it was decided that the development of your field should be carried out on a much mort extensive scale than had previously beet done; accordingly orders were placed for the supply of additional drilling plant of the latest and most efficient design, together with a refinery capable of handling some 10,000 gallons of crude oil per 24 hours.

Producing wells.—The present producing wells, Xos, 2, 3 and 5, continue toflow, without having recourse to pumping, the strong gas pressure being stilt maintained.

Second bonus.—The total production to date is largely in excess of the 500,000 gallons required, and we ere now inreceipt of a second portion of the <;<)• vernment bonus of £2500.

Xew bores.—ln order to conserve our options in the Bell Block district, whew' we have some 2000 acres of drillingground, it was necessary for us to stai* drilling two wells in this locality before October 1, 1912. Two sites were accordingly selected, adjacent to tho railway and road. The derricks on boththese sites are now completed, aud drilling operations commenced on the 28th ult. The value of these wells from a prospecting point of view cannot be over-estimated, as should the prolific oil sands be encountered there, the greaterportion of your property will have been proved.

Rotary plant.—With a view to further developing the field in the Moturoa district, a rotary drill, with sufficient casing for lining two wells, is now being imported, and is due in Wellington on the 15th inst. The rotary system of drilling is considered to he the most efficient in strata such as is encountered' in this district, and it is confidently anticipated that future wells will be drilled in a shorter time, and the oil sands penetrated with a larger diameter of easing than is the case with your present wells,, so that a greater production should be obtained from the same prolific sands encountered in wells Xos. 2, 3 and 5.

Refinery.—With a view to obtaining the valuable products present in your crude oil, a refinery is now being erected on a piece of ground five acres in area, forming jart of the Prison Reserve, on which well No. 2is situated. This sit» is admirably adapted for our purpose, as it is adjacent to the railway and breakwater. A siding is now under construction for handling the plant and will later be used for facilitating the marketing of the refined products. The first shipment of the refinery plant should arrive here about the 20th inst., and m the meantime excavations for the foundations aTe now being made. Bricks, rubble, etc., for the construction of the building are also being obtained. An analysis of a sample of your crude oil has been made, and the follo\yng refined products are obtainable from a daily output of 10,000 gallons per 24 hours:—Spirits, 580 gallons; kerosene, 3300 gallons; gas oil, 2600 gallons (10 tons); lubricating oil, 000 gallons; wax, 140cwt.

Staff.—An adequate staff is now on your field, consisting of field manager, refinery, manager, analytical chemist, two expert rotary drillers and local secretary. Two engineers are being supplied, by the makers of the refinery plant, wlic are responsible for the erection of same. Great interest is manifested inThe development of this industry by our shareholders throughout the Dominion. This is. evidenced' by the large amount of correspondence daily reaching the office seeking information, and the object of this circular is to supply that want, not only to those who make enquiry, but tothe whole of the shareholders,

The Dannevirke Evening News say* that boring for oil at Mangaone will commence in about a week's time .