TARANAKI OILFIELDS, LTD.

Press, Volume LXIII, Issue 18917, 4 February 1927, Page 12

TARANAKI OILFIELDS, LTD.

IMPORTANT DEVELOPMENT WORK. The company with which the Tarauaki Oilfields, Ltd., has made an agreement for co-operation in the development of tho oi l resources of New Zealand is the I. Arcy Exploration Co., Ltd. The latter company is subsidiary to the Anglo-Persian Oil Co., Ltd., and is capitalised by it to investigate and test potential oilfields in :tiow territories. Tho agreement is the result of long negotiations, and includes ail offer on tho part of tho Tarannki Company to grant tho D'Arcy Company an option over certain of its properties which are to be determined prior to reconnaisances in New Zealand l)y geologists, who hnvo arrived in the Dominion from England. If tho option is exercised tho British Company will Ibe obliged to spend, considerable sums on test drilling, and if tho results aro natisfactory, will engage in _ active development. In the opinion of tho directors of the Taranaki Company, the arrangement is favourable for tho company, and, assuming that the conclusions of its geologists are confirmed by the technical representatives of tho D'Arcy Company it should mean a material augmentation of the resources in men, material, and finance to be 3jpplied # to the attainment of tho object for which the Taranaki Company was formed. Under the agreement tho ID'Arcy Company is required to mnke u reimbursement of previous expenditure in certain cases, and to pay a royalty on production. In addition to the courso of action which may bo pursued upon the option now granted, the Taranaki Company will proceed with its own programme of exploration and development within the territorr which it is retaining.