TARANAKI OIL WELLS.

Taranaki Daily News, Volume LVII, Issue 206, 8 February 1915, Page 3

TARANAKI OIL WELLS.

LORD RAXFURLY'S REVIEW

THE FINANCIAL PROBLEM.

GOVERNMENT ASSISTANCE.

London, December IS. Although tbc Taranaki (X.Z.) Oil Wells Cimipany lias not yet reached tin: dividend-paying stage, a shareholder at the animal"nicotine, which tvni Held at Salisburv House on Wednesday, expressed the'opinion tbat the company wan near the paying point. Lord Kanfurly, wlio presided, made tin- welcome announcement that the New Zealand Government bad promised assistance to the New Plymouth industry. Supportin" Lord Kanfurly were Mr. A. L. Horner K.C. M.P., Mr. Joseph Urailsford, Major Dudley Alexander, C.M.G., Mr. J. 11. Henry, adviser, and Mr. A. 11. Prior, secretary. In proposing the adoption of tlie re „ort and accounts, the chairman explained the reason for the delay in the holding of the meeting. Last year he had explained the necessity of obtaining further working capital, and from that time till the outbreak of war they had been ceidlnuady in negotiation with various financial houses with that object in view. No result had, however, attended their efforts, owing to the. excessive terms required bv the parlies who had been approached", .lust before the war started thev were advised by the local advisory boar.! that they wire in active negotiation 'i.lU the New Zealand Government win-, it was thought, would subsidise th> i:iflustrv. lie. was able now to say tha', a.-stance would be forthcoming. l„:t he could not give de-tails, as the n-'.vs hail only arrived by cable. It was Ijecaus..- they were waiting for the decision of tile Xew Zealand Government that the meeting had been delayed. CONDITION OF THE WELLS. The profit and loss account showed that a loss on trading had been sustained. That was primarily due to the fact that they had been unable actively to carry on drilling operations, with the result that the supply of oil lor the reliuery had not been suil'icicnt to keep it properly working, but the demand for the products obtained from the crude oil was excellent, and, in the event of the company being able to work the refinery to the fullest extent, good profits would be assured.

With regard to the wells, the latest I detailed information received from New Zealand showed that work at the rotarv bore had to be temporarily suspended/owing to the stall' having to devote their attention to repairs at No. 5 well. " On work being resumed at the rotary, the bore became very active, and l,i lai'ote the words of the report: "The stall' was hard put to it to secure the oil that was coming away through the S ; n casing. For about half an hour {hi.-, casing was taxed to its fullest capacty in'bringing the oil to the surlace.'aud ill 4i> minuted some SO barrels of pt trolcum were saved. Hut a large (jiiautiiv of oil escaped and llowed out to sea. The tremendous pressure of the gas continued all day, and the rear of its Jsume. could be plainly heard in the town, about a mile and a half from the bore. The density of the gas made it quit;- impossible to conlin.'.e work at the' derrick. - * ■ ] VERY ACTIVE WORK. The chairman showed a photograph take;i on the spot, proving that very acI tive work was going on in the well, Continuing, he said the -No. 5- bore, which had been producing regularly for nonie two vcars, recently ceased to Slow, owing to the collapse o! some lengths "1 the Jin easing, and it win found neces-

sary to withdraw the Din and lin casiiijj" which came away together. As tin; water had been shut oil v.'itli tin* s:n casing, it became ncccs-ary t,> carry th;' (.'in down and shut oii' w:t!i that diameter. This was successfully carried down H'Oit below, where the water i,ad been shut oil - with the uin, and the well was now absolutely water free. Since that lime drilling I'-i'-d been proceeded with ami the bore was lioneased to a depth of -2330 ft. When that depth was reached the gas became so violent that drilling had to be suspended. The bore, in which there was a heavy gas pressure, was clearing itself of silt and coming on to oil. At the No. 2 bore good urogress had been made with tile work of cleaning and repairing, and ,l was believed that all trouble iiftd been overcome. The well, was cased to 21!l'ht, and the management was very sanguine that it would come into production again shortly. They believed the well was now in production. No. continued to How, and a ree< nt cablegram stated that the wee!;lv production ot oil from the company's wells was now about 7770 gallons, or 185 barrels, which, as (rude oil, was valued in New Zealand as about £IOO per week. OIL WITHIN' THE EMPIRE. Mr. A. L. Horner, in seconding the ;Vmptioi'. of the renorC and accounts, desired especially to impress upon shareholders ill New Zealand that it was not impossible to rai.-e capital ill London for tile enterprise. Capital could alwavs 1,., raised, and they could liaye raised any amount at a price. l>ut it w as at :■ wire which the directors thought they were r> tt justified in paying. And it V. :,l:,o :'t a price which wou'.ii have struel; ;i! (lie iudepr e.deiice *.r the e<illlpan\ it-elf. It had bi en a dream of the directors that they should try ami l;eef the company a British concern. His owr dream had been to have oil within tie; Empire, and that was one of tin nasons which governed the directors ii their el7wts to raise new capital. Ii the report of the New Zealand (<o\ern ment. with regard t> the industries o the country, it w'as stated that some thing lil.e ' half-a-inliiion pounds word of oi! products were imported into Ncv Zealand during the past year. SHORTNESS OF WOTIKINfI CAPITAL The chairman faid he had known >li oilfields for more than 17 years, havin | been taken over them by Mr. >ani | iti'l long before lie ever dreamed Uin lie would have n personal connectio with them. The refinery was ill ever way sai-i-fectory. As regards iiw shor I n"ss .if working capital. that was wnsi m • ;1 .l l-ept jhe board ill trouble the who;

vi -\t. twin..' to find poini' way out of tl»-lliflh-nlfv. 'Tt was p:-?-fi-<-tly true, and X>-,v Zealand knew it. tl :it in London tlwv could bave ?"' "">' <l !l ' r,lli, - v " l ]>ii)!!-v but Hie nne-dinu \va--: AUiiuwould bave been left to the ordinary sharcbuMer-, if tlu-v pniil tl'-e nrice asked? Tin- l)0!.r.l con-idi-red it their rlii'v to bok after tin' int«T!--t of Ike ebarebobb-rs us Ion;: a- lli'-v could cany ,„;. w'.ibo-.it -jiviivl' av/av llii-ir I'M'tlirii'i.t. Tlii-y liad carried on, and were soinu' to '-am- on. The roiiort. and amounts were adopted. }ir. A. U Horner \v;i- re-elected to tac board.