Republic programme slowed by shortage

Press, Volume CXIV, Issue 33448, 1 February 1974, Page 21

Republic programme slowed by shortage

New Zealand Press Association

AUCKLAND, January 31

i The development of the Moturoa concession to be undertaken by Republic Petroleum Corporation (N.Z.), Ltd, is expected to be slowed by the world-wide shortage of essential piping, the chairman (Mr E. G. Wallace jun.) said at the annual meeting.

Reparation for explora-1 tion, was, however, proceed- ( ing as quickly as possible and! work was on. schedule, he said. In) a brief statement to the meeting, another of Republic’s directors (Dr Roland Tindel) told; shareholders that, the company had withdrawn from the Northland Basin and its agreements with Hyde Oil (Kaitaia) Ltd. Republic expects to begin drilling 20 stratigraphic wells in the Moturoa area later this year. Mr Wallace said that exploration activity by concessionaires in New Zealand over the next 12 to 18 months could produce up to 150 gas and oil wells. Mr Wallace said that he thought that New Zealand was standing on the threshhold of a “fantastic change” which might be evidenced in the next 12 to 18 months, largely as a result of having new mineral resources. “I am pleased to see that the Government is doing all it can to promote and en-

(courage exploration studies,” he said. I Mr Wallace said that the (company was looking at other (areas in New Zealand and (“within 90 days,” Republic would be applying for additional licences to carry out exploration in new areas. Mr Walace said that the company would be seeking to list its shares “on a foreign market” so that United States investors would get a chance to trade. However. he would not comment on where a listing might take place but said that it would be “later this year.” President Nixon’s move to abolish the 22 per cent depletion allowance, made to United States oil companies on their overseas oil production, could make things “tough.” but was designed (to affect unfriendly nations (such as the Arab bloc, Mr (Wallace said. “But it is against United (States interests to block the flow of funds to friendly countries like Nev,’ Zealand,” he said. It was “unlikely” a windfall profits tax; which could affect Republic in the event of a strike, would ever be imposed, Mr Wallace said.