MOTUROA OIL FIELDS

Wairarapa Times-Age, 30 May 1938, Page 3

MOTUROA OIL FIELDS

COMPANY'S FUTURE INCOME In a memorandum to shareholders the directors of Moturoa Oil Felds Ltd. state that, under the recent agreement, the company has the right, subject to the consent of the Minister of Mines and such other consent as may be necessary, to continue to operate the existing well until June 17, 1942, and thereafter until the New Zealand Petroleum Co., Ltd., gives it 30 days’ notice to cease operations and deliver up possession of the wells. The New Zealand Petroleum Co., Ltd., then has the right the purchase all plant and equipment.

To enable the Moturoa Oil Fields Ltd. to participate in developments in certain licensed areas other than the three areas in Taranaki province from which it will draw royalty from oil won by the New Zealand Petroleum Co., Ltd., an exchange of shares has been arranged between the Taranaki (N.Z.) Oil Fields, N.L. and Moturoa Oil Fields, Ltd., the Taranaki company taking up 60,797 new fully-paid shares of 5s each in the Moturoa company in exchange for 13,028 fully-paid shares of 30s each in the Taranaki company.

When the proposals are finally completed the position will be: Moturoa Oil Fields, Ltd., will derive its income from: (a) Production of its existing wells for period of five years from 16/6/37 or until such time as they are taken over by the New Zealand Petroleum Co., Ltd., (b) Royalty of 5 per cent, on value of crude oil won and sold from existing wells (if and when taken over by the New Zealand Petroleum Co. Ltd.) and from oil won and sold from wells drilled by the New Zealand Petroleum Co., Ltd., on three licensed areas in the Taranaki province, aggregating approximately 600 square miles, (c) By way of dividend on its shareholding in Taranaki (N.Z.), Oil Fields, N.L., in respect of its varied interests.