“Encouraging” Oil Flow At Cabawin

Press, Volume C, Issue 29502, 2 May 1961, Page 17

“Encouraging” Oil Flow At Cabawin

(N.Z.P.A.-ReuUT'-Capuright)

BRISBANE, May 1. About 4000 gallons of oil a day is flowing from Cabawin No. 1 well at Tira—JOO miles from Brisbane—in the most encouraging Australian oil strike since the ill-fated flow at Rough Range. Western Australia, in 1953. Experts said last night that the Cabawin flow so far had little commercial potential. About 20,000 gallons a day was required for commercial production. In Canberra, the Minister for National Development (Senator Spooner) said that progress results at Tara were encouraging. The Queensland Minister for Mines (Mr Evans) said: “I received a very full report on Cabawin on Friday. My geologists were out there.” Statement Expected The Union Oil Development Corporation, operator for the Union-Kem-A.O.G.

Cabawin No. 1 well. Is expected to make a statement in America on Tuesday. Preliminary production testing at the well has indicated the pressure of light gravity oil and gas. The well was producing high-grade oil. Professor E. A. Rudd said in Adelaide last . “ft Is nil which would fetch top pricesi slid which 'contains about 59 per Cent petrol.” Professor Rudd, professor of ®comjmi#:dSteoic®y fct Adelaide University, returned to Adelaide after observing tests at the well. : He ts chief geotogml adviser to Australian Oil and Gas Corporation. OIL SHAKES SO AR . Stock Exchange Scramble (N.Z,P.A.-Reuter— Com/ripltt) O,,^SS d * scenes on the Sydney Stock Exchange today, m reports of a steady oil flow at. Tara, QneeiM&ind, reached broken. Operators and brokers Joined In a melee in the middle of the floor and the oil trading post had to be cloaed for a short period. Shares in Australian Oil and Gas the “roma group" fluctuated widely. Australian Oil. after rising to 265, closed at 23s early—a rise of 2s 10|d. In the Roma group Associated Oil jumped 2s 3d to 9s 3d, and Associated Freney rose Is 6d to 5s 3d.