OIL SEARCH IN NEW ZEALAND

Press, Volume LXXVI, Issue 23001, 22 April 1940, Page 8

OIL SEARCH IN NEW ZEALAND

£500,000 SPENT SO FAR PROSPECTING OPERATIONS REVIEWED “Since - early in 1938, when prospecting operations .for oil began on the present scale, a total sum of £500,000, it is estimated, has been expended,” said the Minister for Mines (the Hon. P. C. Webb) last night. ~ Stating that the total estimated production of crude petroleum in the Dominion to the end of 1939 was 2,987,631 gallons, Mr Webb said that, since the passing of the Petroleum Act, New Zealand had seen the inauguration of a most thorough arid extensive search for oil. “Contrasted with previous attempts, the work now being undertaken,” he said, “is, being carried out with the most modern equipment, which is being operated by expert and scientifically-trained staffs.” The existence of oil in New Zealand had been known for many years, and efforts to locate it in payable quantities had extended over 70 years. Although the previous work did not prosper, the results were inconclusive; much of it was ill directed and futile, and of the remainder, some wells did not reach their objective, because of poor technical equipment and lack of funds. Up to the present, Mr Webb said, 65 licences to prospect for oil had been granted. The area aggregated 11,500 square miles in the North Auckland, Gisborne, Hawke’s Bay, Taranaki, Wellington, Otago, and West Coast '(South Island) districts. Two Drills Referring to the thorough and active prospecting campaign embarked on by the licensees, the Minister said there were in the Dominion now two modern drilling plants, one of which was capable of drilling to 10,000 feet and the other to a depth of 15,000 feet. The cost of these two plants was approximately £200,000. One hole at Totangi. near Gisborne, was drilled to a depth of 5700 feet, but, because of unfavourable conditions, had to be abandoned. The plant was immediately dismantled and transported to Morere, where - the drilling of a second hole had begun. The other plant was npw being prepared to drill a well at Midhirst, in the Taranaki district. Two wells had also been drilled in the North Auckland district, one to a depth of 837 feet and the other to a depth of 1461 feet. “In addition to drilling plants, there has also been imported into New Zealand some pf the most modern geophysical equipment in the world,” he said. “The cost of one of the sets of equipment was approximately £20.000. Very active geophysical investigations are being carried out. the expenditure of one licensee in this class of work being approximately £3500 a month.” Personnel Engaged However, activities were not confined to geophysical investigations and drilling. Very careful and thorough geological investigations, topographical surveys, and palaeontological examinations were being made, and large areas had been geologically mapped by licensees. Some idea of the extent of the operations might be gained from the personnel employed by licensees, 132 being employed by the. major companies as follows:—Geologists; geophysicists. etc., 55, surveyors nine, draughtsmen four, -laboratory assistarits five, drillers, etc., 23, others 36.