SPECULATIVE RISK IN L AND M OIL

Press, Volume CIX, Issue 32145, 14 November 1969, Page 13

SPECULATIVE RISK IN L AND M OIL

The speculative nature of the four million 50c shares in L and M Oil N.Z., Ltd, now being offered to the public, is emphasised in the prospectus to the issue, which will be filed today.

The shares, which have J been underwritten by Newjl Zealand United Corporation, : Ltd, and Daysh, Renouf and|t Company, represent an inter-|t est in oil exploration in the < off-shore area north of Nelson;

held by Tasman Petroleum, Ltd.

Drilling in the area, which is 35 miles south of Maui 1, is being conducted by New Zealand Acquitaine Petroleum, Ltd. L. and M. Oil will hold the Tasman interest of Lime and

Marble, Ltd, of Nelson, and | the public issue will represent 40 per cent of the capital of the new company, which will own 25 per cent lof Tasman. , The proceeds of the current (issue would not be used to pay Tasman’s liabilities to its shareholders, the prospectus says, but these liabilities would be discharged before any dividend was paid. N.Z. PROSPERITY The consulting geologist to the venture, Professor Eric Rudd, says in his report that the level of production he visualises from the Tasman area will make a significant contribution to New Zealand’s prosperity. The results of the geophysical surveys and the accumulated geological information have convinced him of I the good prospects of the j area, which he describes as “one of the most attractive in New Zealand for petroleum exploration.” Tasman Petroleum has applied for further licences around and west of the Chatham Islands, the prospectus says. Applications for shares, with a minimum of 200 and then in multiples of 100 should be made with an allocating broker or with Daysh, Renouf. Full payment of 50c a share must accompany applications.