Keen Demand For Republic

Press, Volume CX, Issue 32210, 31 January 1970, Page 14

Keen Demand For Republic

(New Zealand Preet Axjoclalton) HAMILTON, January 30. Waikato sharebrokers today described the demand for shares in the Republic Petroleum Corporation (N.Z.), Ltd, as phenomenal. “The issue of two million 50c shares will ,be heavily oversubscribed: it is just the same as L and M Oil was,” said one broker.

The company announced plans last year to drill five exploratory wells in the Waikato Basin and its prospectus was published today. Sharebrokers in Hamiltoi said applications for share: had been lodged continuously since the company announce! its intention to search for oi last year. “There are far more appli cations than there are share: and most brokers will prob ably operate a ballot system,’ said one. The company is making ai issue of two million shares a 50c at par and Waikati brokers have described thi as “far too small for th, amount of interest,” Brokers in Christchurcl said earlier this week tha they had very small alloci tions of the shares fo distribution.

The authorised capital of the new company is s2m, but half of this is being issued to Republic Mineral Corporation of Texas—a million shares in consideration for rights and services, and a million shares to be subscribed for at par. The Republic Mineral Corporation of Texas believes that the commercial oil potential of the Waikato sedimentary basin is “highly promising” and that exploratory drilling is “fully justified, according to the introduction to the prospectus. “The Republic Mineral Corporation, backed by, and in association with, international oil interests, wishes to invite the public of New Zealand to participate in the additional seismic evaluation required to determine, precisely, the drilling sites, following which the American company will, at its own expense, drill five wells,” it says.

“Upon the discovery of petroleum in commercial quantities, the New Zealand company will share equally

with the Republic Mineral Corporation the income derived from the field.” The new company’s licence area is of 1556 square miles and is roufihly enclosed by a i rectangle extending from Te ; Awamutu in the south-west , to Whangape Lake in the I north-west (a fqw miles northl west of Huntly), and to Netherton (north of Paeroa) in the north-east and Hinuera ' (south of Matamata) in the 5 south-east.