TARANAKI OILFIELDS.

Auckland Star, Volume LVIII, Issue 276, 22 November 1927, Page 4

TARANAKI OILFIELDS.

ANNUAL REPORT. DIRECTORS STILL HOPEFUL. The annual report of the directors of the Taranaki Oilfields, Ltd., for the year ended July 31, states that "the company's negotiations with the D'Arcy Exploration Company, Ltd.—a subsidiary of the AngloPersian Oil Company, Ltd.—were terminated early in July last after consideration of proposals for a variation of the terms upon the basis of which the discussions were initiated. The directors express regret that it was not possible on this occasion to secure the co-operation of a leading British organisation in the search for oil in New Zealand, but it is stated that the new conditions proposed by the D'Arcy Company were unsatisfactory, more particularly taking into account the geological evidence already secured and the drilling programme determined upon in the region and during the period .o which the D'Arcy Company sought extension of option rights.

THE MORERE SITE.

Within a few miles of one of the structures there is an outcrop of sand about 200 ft in thickness, which smells of oil, and from which oil can be extracted. These structural areas are comparatively easy of access, and in each case the 'area of closure,' or the area from which production may be expected, is of great extent. One of these structures, known as Morere, is now being tested, the well being Ipcated about 1000 ft from the crest of the dome. Geological opinions with regard to the prospects on the Morere dome are unanimously favourable, and it may be added that another structure a few miles inland is regarded as being even superior to Morere, and would have been drilled earlier but for the fact that the necessary information has only been gained during the last few months. A drilling site on the structure has been tentatively fixed, and it is intended to move drilling equipment in as soon as weather conditions permit. All going well, drilling should be in progress on this area early in 1928. "In conclusion, it can be stated without reservation that the prospects of the company are good—better by a considerable margin than at any previous time. There has always been good reason to believe that oil exists in the North Island of New Zealand iir. commercial quantity, and in recent months the evidence has assumed more definite and more favourable shape. | It is the opinion of all competent geologists who have examined the territory that persistent effort should meet with success."