RIGHTS OF COMPANY

Taranaki Daily News, 18 September 1940, Page 8

RIGHTS OF COMPANY

oil field development position at moturoa "If the present Act were • not in force and if rights were not granted in consequence to the New Zealand Petroleum Company, I: would be inclined towards the proposal," said the Hon. P. C. Webb, Minister -of Mines, at New Plymouth last night, when replying to a suggestion from the Taranaki Chamber of Commerce that as a war measure the Moturoa oilfield should be further exploited. "Nevertheless I will - discuss the matter with the representatives of the company and come' to a decision as soon as possible," he said. '.'If there is oil in Taranaki then the present companies will find it," continued the Minister. "They have spent about £1,000,000. I am confident that they will get it, and I can say that no gold mine would do this country half as much good as the discovery of an oil field." In introducing the subject Mr. Gordon Fraser expresed appreciation at the work carried out by the Minister, but asked for a sympathetic consideration of the Moturoa prospect; not as a commercial venture but as a war measure. Mr. A. B. Scanlan pointed out that Moturoa was the only proved oil field in . New Zealand and Austrglia. There was no desire to interfere with the rights of companies, .but it was felt -that as. a war measure the utilisation ■ of the . full field might be justified. Mr. Scanlan stated that it was felt that if modern methods were applied at Motui'oa the results would be appreciable. . The' Moturoa field had produced about 2,500,000 gallons of crude oil, and of that Moturoa Oil Fields Ltd. had won roughly 1,500,000 gallons during the last few years, stated Mr. W. Fossey. Moturoa was a definite producing area, and though production was not big from each well, tlie oil was of good quality. -Every galloq was of great value to the country. The producing level was shallow— approximately 2000 feet. Under present methods of drilling to this depth the cost spread over a number of wells would be reasonable.