AUSTRALIA’S OIL DISCOVERY

Press, Volume LXXXIX, Issue 27226, 18 December 1953, Page 16

AUSTRALIA’S OIL DISCOVERY

STATEMENT BY AMPOL EXPLORATION Events leading to the discovery of oil at Exmouth Gulf, Western Australia, were made known to the Australian Stock Exchanges by Mr W. G. Walkley, managing director of Ampol Exploration, Ltd., last week. On November 1 a waxy substance was noticed in the mud and cuttings coming from the well. The technologists said it was ozokerite, which was of little commercial value. Drilling continued. After laboratory tests of samples sent to San Francisco, the Standard Oil Company of California instructed that the drill casing be perforated at the point at which the waxy material had been met, and that a test on the well be run. Mr Walkley said delays occurred in sealing the well and obtaining an oil showing, but the first test on November 27 gave 14 barrels of oil. One gallon was sent to San Francisco to determine whether it was crude petroleum. It was not until December 4 that the chairman of Standard Oil announced the discovery. Ampol Exploration, Ltd., was not told of the nature of this intended statement, and Mr Walkley received a cable of regret on December 7. Ampol Petroleum, Ltd., will need about £BOO,OOO of the new issue of £2,450,000 to take up its rights in any new issue by Ampol Exploration, Ltd., said the company in a statement. This amount is based on the intention of the American associates to spend £4,500,000 on the Western Australian oil fields during 1954. The remaining proceeds of Ampol Petroleum’s issue will be used for the general development of its business. It had already paid £1,500,000 for a new oil tanker which had not yet been delivered. Two leading American oil executives have left for Australia to inspect the Exmouth Gulf area. COMPANY NEWS Aulsebrooks Interim.—An interim preference dividend of 2'/ 2 per cent, is payable on December 18, and is ex the*same date.—(P.A.) Gear Meat.—The directors recommend a final dividend of 6a a share.—(P.A.) Denhard Bakeries.—An interim preference dividend of 4 per cent, (less social security tax) is payable on December 18. —(P.A.) Voting Powers Limited.—The directors' motion to-limit the voting power of large shareholders to 10,000 votes was passed by shareholders of the Northern Roller Milling Company, Ltd., at an extraordinary general meeting this week. The motion went through on a show of hands. At a meeting on November 5 this motion was defeated by the voting of the Public Trustee, who holds 36,800 ordinary shares out of the 225,000 issued.—(P.A.) STOCK SALE OXFORD The first Oxford fat lamb sale of the season was one of the lightest yardings for this sale for many years. About 250 lambs were penned. The sale was quite a satisfactory one, taking into consideration the weight of the lambs and the small number forward. There was a full representation of all freezing companies. Sales included: R. J. Southgate, 27 at 61s Id to 65s Id; K. D. and A. M. Henderson, 35 at 65s Id; H. E. Reid, 27 at 61s 7d; N. G. Dailey, 21 at 58s 7d to 61s Id; E. A. Bottemer, 35 at 61s Id; N. W. Skurr, 72 at 56s Id to 58s 7d; J. J. Howard, 19 at 58s Id.

NAPIER WOOL SALE PROCEEDS (New Zealand/Press Association) NAPIER, December 17. The gross proceeds of the Napier November wool sale were £3,010,127. A total of 41,869 bales was offered. The average price per bale was £7l 17s lOd, and the average price per lb 50.833 d. COLOMBO TEA MARKET (New Zealand Press Association) COLOMBO, December 15. Offerings totalled 5,314,0421 b at the tea sales held this week. A strong Middle East demand prevailed at the close of the sale. High-grown broken orange pekoe realised 245 cents lb; medium liquoring broken orange pekoe, 201; medium, liquoring orange pekoe, 210; low medium broken orange pekoe, 190; low medium dust, 195.