SEARCH FOR OIL

Wairarapa Times-Age, 6 August 1940, Page 9

SEARCH FOR OIL

AGREEMENT WITH AMERICAN COMPANY. PROSPECTING IN GREY DISTRICT. (By Telegraph—Press Association.) GREYMOUTH, August 5 ; An agreement whereby the Superior Oil Company, California, will prospect for cil in the Marsden Riding, near Greymouth, has been concluded with New Zealand Oil Concessions, Ltd. holders of the licence. The agreement is the result of long negotiations and is highly satisfactory to New Zealand in that the Superior Company will provide the necessary plant and capital for prospecting and drilling en the basis that payment for such is a first charge on the profits should oil be found. The Superior Oil Company takes up 75 per cent of the shareholding in New Zealand Oil Concessions, and any subsequent profits will be divided on that basis as between the American and New Zealand shareholders. The Superior Company is known as the largest independent oil prospecting concern in the United States and holds the world record for drilling. The company is satisfied, as the result of preliminary survey work, that the Grey district is an encouraging field. The seepages at Kotuku, well known to West Coasters, are hopeful signs. The head office of New Zealand Oil Concessions is in Christchurch, the directors representing the American interests being Mr R. E. Turner, geologist. Los Angeles, now of Palmerston North, and Messrs J. W. Ward and F. C. N. Anderson. Wellington, and for the Now Zealand shareholders, Messrs D. S. Thompson and E. E. Lower, Christchurch.