Oil Fids remains explorer

Press, 9 December 1985, Page 45

Oil Fids remains explorer

PA Auckland Oil Fields, NL, intends to remain an oil exploration company, its chairman, Mr R. A.' Radford, told shareholders at the annual meeting in Auckland.

Mr Radford interrupted one shareholder he considered may have been “leading the meeting to a spontaneous vote” to endorse any moves by the directors to seek diversification from being an oil exploration company. The shareholder then asked Mr Radford what he intended to do about the company’s share price which did not reflect its asset backing. Mr Radford said it was not the directors’ job to worry about getting the share price up. While investment firms were what he termed the flavour of the month, the company shares would rise if it found oil.

Oil Fields, he said, had $12.5 million invested into shortterm cash securities, and the group’s net assets represented more than 20c an issued share. Mr Radford said it was much too early for Oil Fields to consider a major change of direction.

Another shareholder who spoke in favour of Oil Fields continuing its present course received a round of applause. Mr Radford said the most tangible result to date had been the drilling in Westland of the Niagara-1 well, which flowed about 100 barrels of oil a day. The company, he said, intended to drill two more wells, beginning in February or

March, and to reopen the Niagara-1 well to allow extended production testing. This programme should provide information with which to determine whether oil production is feasible.

Mr Radford said the Shell BP Todd consortium was understood to be looking to drill early next year the Te Ranga prospect in PPL 38107 in which Oil Fields has a 3 per cent interest.

Drilling of the Pukearuhe structure in PPL 38083 was planned for early 1986, said Mr Radford. The well would be risky but had the potential for an oil find in the region of 100 million barrels.

Oil Fields has recently acquired a half interest in Australia and New Zealand Petroleum, Ltd, from NZOG. ANZ Petroleum holds some exploration interests in Australia and two substantial licences onshore in Papua New Guinea. Mr Radford told the meeting that Oil Fields was showing a profit on paper of about $1 million on its investment in Horizon Oil Exploration. In reply to a shareholder’s question, he said the board had not decided whether it would be taking up the offer from Capital Markets for its shares in Horizon.

He said Oil Fields had about 24 per cent of New Zealand Oil ano Gas, Ltd, but had no intention to increase its holding. Oil Fields has acquired a 10 per cent holding in recentlylisted Luxoil NL, and has an option to acquire a further 7.5 per cent, which expires midJune 1986.