TARANAKI OIL PROSPECTS.

Taranaki Daily News, 12 August 1916, Page 4

TARANAKI OIL PROSPECTS.

AN ENCOURAGING OUTLOOK. We are in a position to state that, !fl spite of lii uncial difliculties, the Taranaki (X.Z.j Oil Wells Co., Ltd., lias been able to carry on the industry through the trying months due to the war. The Advisory Board anticipated that tha loan advanced by certain of the shareholders ir 1913 would have carried them forward to a time when money would have been more easjjy obtained on the llonie market or in the Dominion, but the outbreak of war rendered it impossible to obtain further capital, and the 'imperilled position of the industry was placed before the Government. The action taken by the Government has not only enabled the company to eontinue drilling, but has given confidence and made further progress possible. The Government is advancing a substantial sum, upon security, to the company, as work proceeds, lor the express purpose of testing the field at thai 5000 feet horizon, which was reported on so favorably by Mr. E. C. Clarke, the. Government Geologist, in 1912, and at which depth it is anticipated a mors prolific oil supply will be encountered, Work is proceeding accordingly at No, 2 bore, and in order that the field may be thoroughly tested the well has been re-cased, commencing l with a Btring ol l'2in. easing, following by a string of lOiri., and now Sin. casing has been car-i ried down to where there was only Sin, in the old well.

No. 5 bore has been flowing foral)out four years, and still maintains a constant flow. The record of this well proves conclusively that the Moturoa oil reservoirs are of considerable magnitude. This well lias in on small degree mada possible the carrying forward of the iw dustry. A new benzine extraction plant nas recently been erected at the refinery. This has proved highly satisfactory and economical, the benzine extracted by this process giving general satisfaction. Since January the monthly sale has averaged about 1400 gallons. The engineer of a large local firm-, who has used thousands of gallons of the local spirit, compares it favorably with the imported brands, and has no hesitation in saying that, provided the car's ignition is properly tuned and the carburettor properly adjusted, the difficulty of starting is eliminated. As regards power, he considers it equal to, if not greater than, anjt brand on the market.

The benzine is filtered before beinjf sold, so that it is free from any foreign matter. One car ran 10,500 miles as a test on Taranaki benzine, ant. was found to bo almost free from carbon when taken down. The usual mileage for a car to run before cleaning is 5000 miles. Owing to the company being in a position to sell all their benzine locally, the expensive process of tinning and casing has been eliminated, the spirit being sold in 45 and 00 gallon drums. The consumer has no charges to pay other than for the benzine, the drums being returned for refilling. A good demand has been created for the company's crude oil, ss well as for the benzine, the former being extensively sold for Diesel engine fuel. The average sales of crude oil for the present year have equalled (if) 80 gallons per monthj and the demand is steadily increasing.