SEARCH FOR OIL

Waikato Times, Volume 122, Issue 20501, 18 May 1938, Page 9

SEARCH FOR OIL

OPERATIONS STARTING BORING ON EAST COAST BIG CAPITAL EXPENDITURE (By Telegraph.—Press Association} CHRISTCHURCH. Tuesday New Zealand will witness shortly the Initiation of one of the largest and most comprehensive oil development schemes undertaken In the Southern Hemisphere for many years. .... Within the corning 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 the arrival of machinery now on order, plus allowance for the erection of drills and provision of staff accommodation. The search will commence on an area of 1000 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 has been gathered to warrant the expenditure of capital on a more* expensive process of drilling. Modern Machinery The first into the tleld will be the New Zealand Petroleum Company, Ltd., an organisaiion with extensive capital resources. The company has arisen as the result of the merging of the Taranaki Oilfields with the Vacuum Proprietary, which has interests throughout the world. Modern machinery of the value of £750,000 has been ordered by this company for use in the search for oil in New Zealand and the development of the country where oil deposits arc believed to exist. One report Is to the effect that the company is prepared to spend £1,000,000 in the search, though it believes it has a reasonable chance of discovering a payable field before reaching that figure. New Industrial Era The Minister of Mines, the Hon. P. C. Webb, said he personally was Y gratified that the work would soon be put in hand. The search for oil was timely, and if the results reached the expectations of the companies concerned. a new industrial and economic era would dawn In the Dominion. The Minister also said the Shell Company had been granted a license to operate over an area of 900 square miles a little to the south of Napier, and other licenses would beg ranted durother licenses would be granted dur-