OIL BORING

Wairarapa Times-Age, 18 May 1938, Page 7

OIL BORING

BIG DEVELOPMENT SCHEME IN NEW ZEALAND EXTENTIVE AND SYSTEMATIC SEARCH OPERATIONS IN EAST COAST DISTRICT (By Telegraph—Press Association.) CHRISTCHURCH, This Day. In New Zealand shortly there will be initiated one of the largest .and most comprehensive oil development schemes undertaken in the Southern Hemisphere for many years. Within the coming two or three months boring will be commenced on the East Coast of the North Island, the actual date of the start of the work depending on the time of arrival of machinery now on order, plus allowance for the erection of drills and the provision of staff accommodation. Details were announced yesterday by the Vacuum Oil Company-Proprietary, Ltd., and Taranaki (New Zealand) Oil Fields, No Liability. In af? memorandum to shareholders, Taranaki (New Zealand) Oil Fields states that yesterday New Zealand Petroleum Company, Ltd., was incorporated at Wellington, with an initial nominal and subscribed capital of £250,600 in £1 shares, divided into 600 A shares and 250,000 B shares. No shares have been issued other than for cash. COMPANY’S DIRECTORS The directors of New Zealand Petroleum Qo., Ltd., are: — Sir Colin Fraser (Melbourne), chairman of directors of Broken Hill South, Ltd., director of North Broken Hill, Ltd., and Zinc Corporation Ltd., chairman of directors of Electrolytic Zinc Co. of Australasia, Ltd., and of Western New South Wales Electric Power Pty., Ltd., etc. Sir Walter Massy-Green, K.C.M.G. (Melbourne), director of Electrolytic Zinc Co., of Australasia, Ltd. Mr Hugh Hamilton (Melbourne), chairman of directors of Vacuum Oil Co. Pty., Ltd. Mr Wesley A. Ince, solicitor, of the firm of Arthur Robinson and Co.. Melbourne; director of Claude Neon, Ltd., Hoyt’s Theatres, Ltd., etc. Mr A. K. S. Mackenzie, solicitor, of Wellington, director of Rimu Gold Dredging Co., Ltd., Grey River Dredging Co., Ltd., California Texas Investments, Ltd., etc. Mr H. H. Sterling (Wellington), director of Hume (Cobb River), Electric Power C 0.,. Ltd., etc. Sir Colin Fraser will be chairman of the board, and the secretary is Mr F. H. Bass, of Wellington. AREA OF SEARCH The search will commence on an area of 100 square miles of country in the Gisborne-Wairoa district. The country in this locality has been subject to an extensive geophysical and geological survey, and sufficient data have been gathered to warrant the expenditure of capital on a more expensive process of drilling. The New Zealand Petroleum Company, Ltd., an organisation with extensive capital resources, has been formed as a result of the merging of Taranaki Oilfields with Vacuum Proprietary, which has interests throughout the world. Modern machinery, valued at £75,000, has been ordered by this company for use in the search for oil in the Dominion and the development of country where oil deposits are believed to exist.

One report is to the effect that the company is prepared to spend £1,000,000 in its search, though it believes it has a reasonable chance of discovering a payable field before reaching that figure. The Minister of Mines (the Hon P. C. Webb) said he personally was gratified that the work would soon be put in hand. A search for oil was timely, and if the results reached the expectations of the companies a new industrial and economic era would dawn in the Dominion. The Minister also said that the Shell Company had been granted a licence to operate over an area of 900 square miles a little to the south of Napier. Other licences would be granted during the next few weeks. MACHINERY ORDERED INITIAL DRILLING VENTURE (By Telegraph—Press Association.) GISBORNE, May 17. Modern machinery capable of drilling to a depth of 8000 feet will be loaded in the United States next week to the order of the Vacuum Oil Company for transport to the Gisborne district. The gear should be delivered in Gisborne before the end of June and by then everything should be ready for assembly on the site at Totangi chosen by the Vacuum Oil geologists for the initial drilling venture in Poverty Bay. The company has a staff of men working in the district in addition to a resident geologist. A camp site has been selected at Totangi and huts are to be erected for 30 men, comprising a regular drilling gang. The by-road will be surfaced to carry heavy loads of machinery and a new bridge is being constructed over Totangi creek on Mr Dougal William’s property, where a well site had been located. The road reconstruction job has been let to W. S. Goosman and Company, and arrangements have been made

with the Poverty Bay Electric Power Board for the supply of electricity for lighting and domestic purposes at the camp. It is proposed to use the old Ngatapa railway section for the transport of the heavier machinery from Gisborne. The plant will be operated by Diesel power. The arrival in New Zealand of the Vacuum Oil Company’s drilling superintendent is awaited with interest. He has lately been supervising drilling and production in the Sumatra field. While the preparations are proceeding for drilling at Totangi, further sites are being chosen with a view to extending the drilling operations later. NATURE OF SHARES. CAPITAL TO TEST POSITION. By Telegraph —Press Association. WELLINGTON, This Day. In an interview, Mr Hugh Hamilton, chairman of directors of the Vacuum Oil - Company Proprietary Ltd., explained that the nature and division of the shares was such that the effect was that the Taranaki Company, outside of taking up of 200 A shares, was not called upon to provide any capital until there had been an expenditure of £250,000 represented by B shares. The purpose of the Vacuum Company and Californian and Texas Investments, Ltd. in putting up £250,000 between them was to provide the capital necessary to test the position. The holders of B shares did not have the right to participate in the profits of the New Zealand Petroleum Company Ltd., otto take part in any general meeting.