THE TARANAKI PETROLEUM FIELDS.

Dominion, Volume 5, Issue 1402, 30 March 1912, Page 18

THE TARANAKI PETROLEUM FIELDS.

GENESIS OF THE INDUSTRY. ; EARLY DISCOVERIES: STORIES OF PLUCK AND ENTERPRISE. Success at last: Payment of the Government Subsidy. Present Prospects: Yield, 7,000 to 10,000 Gallons per Week. "Tho geological structure of the Taranaki district, New Zealand, together with the production which has attended initial development, indicates the existence of an important oilfield. Of prime importance in the light of present knowledge ire the properties, including as they do tho 'Mqturoa' Block, which fringe New Plymouth Harbour and enclose wells yielding petroleum of the highest quality. These oil properties, which possess great potential value, are from their position capable of more expeditious and economical development than any others with which I am acquainted. I hold the opinion that still lower horizons than 3680 feet, and nearer to the strata to which oil is indigenous, present even greater possibilities than.thoso penetrated,"—Dr. J. M. Bell. "The biggest prospective field I have ever seen, its possibilities are enormous."-Mr G. Adams, associate of Sir Boverton Redwood, the eminent petroleum authority, London.

"Struck oil!" The magic of Aladdin's lamp cannot conjure up greater phantasies of wealth than the utterance of'these two little words. In drama and 6tbry and real life tho men who have "struck oil" hare had at..their, command...something, better than goldmines. The financial king of the world to-day is a man of oil. Oil, it is more valuable than gold. ;It will make a thousand, and one things, from the malodorous benzine and kerosene to Attar of Rosea for a lady's handkerchief; from the soft sperm candle /to the hardened asphalt on the strcots. For alleorts of motive power, for steam engines and iteamships, the cry is for oil, and more

is about to be wiped away through the advent of British capital allied with that of New Zealand. Oil experts and capitalists from foreign parts are agreed on the great possibilities of oil production on tho Moturoa' fields, which are practically virgin-in character. Millions of tons of oil yearly have been reclaimed from the American fields, but tho demand there, as everywhere else, exceeds the supply, and the cry is for more fields. The opportunity now presents itself in New Zealand to further exploit its own iiolds, which havo been tried and proved to tho satisfaction of tho most sceptical. - THE OIL FIELD. '.'••■'•. Journeying out two or three miles from

permanent settlement by the Europeans, for it was in November 28, 1839, that Dr. Ernest Dicffonbach, naturalist, of Berlin, first noted signs of oil when he visited the Moturoa beach in the ship Tory, with an exploring expedition of the New Zealand Land Company. DIEFFENBACH'S REPORT. The doctor remarked, in his roport, that "there was a strong smell of sulphuretted hydrogen gas about a mile from highwater mark." Ho added that the Natives of the place had a whimsical story that tho odours were caused by the decomposing spirit of a Maori atua, or god, who had been drowned there. In the days of

oil. , Fifty million tons, were produced in 1910, and of this quantity twenty million tons were used by way of fuel, principally on railways. Other uses, were in largo smelting works at the nitrate mines, and by the bulk of manufactures throughout tho world. Here in our own New Zealand it is ussd in almost every town and village in some way or. the other, and practically all imported, because so 'far we have introduced no refining process' for the oil which wo are now producing at Moturoa, New Plymouth.' This difficulty

New Plmyouth towar.ds / the Breakwater

and wharf and' the historic Sugar Loaves, the traveller will perceive on his right and left several long, dark, narrow pyramidal objects which raise themselves silent and. weird along the foreshore. These are tho present oil wells of Taranaki,. tho only place in tho locality where "oil has been struck," and--where it is now being reclaimed from old Mother Earth at the rate of from 7000 to 10,000 gallons a week. The discovery of oil in Taranaki dates back oven to years before

Dr. Dieffenbach oil production from the earth was practically unknown, and now observations by scientists lead one to understand that the Maori explanation was not at all whimsical, 1 but sufficiently near as to be almost correct. Tho origin of petroleum has given rise to much speculation, but in all probability it has been really produced by tho slow decomposition undor great pressure of both vegetable and animal matter! In his book on Taranaki, the late Mr. Charles Eursthouso also referred to the fact that the earliest settlers remembered how the water around the Sugar Loaves was sometimes covered with a scum of oily matter, while one had only to disturb a stone on the beach to find beneath it a similar deposit of oil, which was pronounced to bo petroleum. The presence of oil in this region is very easily detected. It may bo seen exuding from tho ground, principally small streams, and covering the surface of tho water for some distance, and also in the swamp lands along tho ocean beach. Gas may bo seen bubbling up through the water and oil, and steady or intermittent ebullitions of gas nro constantly disturbing the clear or muddy waters along tho. foreshore. A scum of petroleum is frequently seen on tho surface of tho sea near the Breakwater, and is rendered very noticeable when the dredge, used for clearing away sand accumulations from tho harbour, is at work. The racks taken up from tho bottom of the harbour are saturated with petroleum, and in some of the drcdgc-loads of sand there rim often to be seen many barrels of crude petroleum. It is very evident that oil is present in large quantities in the region of Moluron, and possibly over a very large area of ground. KAIiLY HISTORY. The e;irly history of the oil discovery at Sfotiiron makes interesting reading, but nobody troubled over Dr. Diefl'cnbach's report for many years, for the simplo reason that practically nothing was known on the subject. The history of petroleum excavations in the world dates back only about half a century. It was at the end of 1865 that four men, residents of New riymouth—Me»3r». J. F. Carter, J. E. Scott, J. Smith, and Eon—applied to the th«a Tw»a*M ProvinaW Ctraaoil fe* Ow ijtaU i» sxojfisei La ail ca £3 swsa cL

the most easterly part of the Sugar Loaves Reserve, divided from ,tlio remainder by a line parallel to Paritutu (tho bigger Sugar Loaf) and giving about half a mile of sea-frontage from the stream at Honeyfiold's farm, where resided then and now descendants of the famous whaler "Dicky" Barrett. The late Mr. K. .M. Smith, Jf.H.R.f is 6aid to have first pointed out the possible existenco of petroleum on the beach to his namesake of tho party. The leases were cut lip into acre allotments, and the council invited applications for them in accordance with conditions. The rights were readily sought after,, and tho only surviving original holder of one/of them, Mr. William Humphries, 'iiS still *a resident of New Plymouth. ' The Hon. T. Kelly, the then provincial secretary, who signed, all tbo leases, is also a resident of Now Plymouth to-day. The terms of tho agreement to Messrs. Carter and Company, who may well be termed the pioneers of the industry, were that the land should be granted free, no royalty or charge, for two years, on condition that tho company should sink or bore not. less than a depth of 120 feet from the surface during the first year, and not loss than 240 feet from the surface during the two years, tho arrangement being subject as to whether oil would be found in payable quantities before reaching those depths. Should oil not be found before reaching 2)0 feet, the company was to boro at the rate of not less than 120 feet per year, the royalty to bo paid when the oil was obtained in saleable quantities. The royalties to bo paid in these circumstances were as follows:—At up to 120 feet, 7 per cent.; 120 to 240 feet, 6 per cent.; 240 to 360 feet, 5 per cent.; 360 to 480, 4 per cent.; over 480 feet, 3 per cent. These terms were accepted by the Provincial Council, and tho company started operations. "TO OIL OR LONDON." Work commenced at the end of December, in 1865, Carter and his mates operating with picks and shovels on the site near tho blacksmith's shop at tho bottom of tho Breakwater. By January 18, .1860, the party came upon gas in such quantities that one of tho men was so overcome that ho had to bo removed to the hospital for treatment, and a windsail had to be introduced into the shaft boforo work cculd be continued. There was some excitement in tho town, and so' impressed was the provincial treasurer -with tho prospects that in his financial statement on February 13, 1866, he referred to "the sanguine hopes entertained of the discovery of tho natural reservoir of the petroleum that oozes qut of the Sugar Loaves." A week later Messrs. Carter, Scott, Smith, and Ross struck oil at a depth of 00 feet. The pctrolbura was thick, and of a green-ish-brown colour; it had a genuine kerosene smell, but not so strong as tho purified oil. At this stage the shaft showed such signs of crumbling in that tho company decided to continue operations by boring. Meanwhile, in order to show their intended spirit of perseverance with reference to 'urthor operations, thoy raised their no.v historic legend on a sign-board above tho shaft—"To oil or London." On April 5, the Provincial Council extended the company's lease to nine years, without payment of royalty.

FOItEEGN COMPANY TURNED DOWN

The prospects soured by tho little company wero apparently so good that they attracted attention from a Melbourno syndicate, but a- public meeting prevented anything being done in this direction. The company had undertaken to raise capital of .£50,000 (.010,000 of which was to bo in the province) and to pay a royalty of ten per cent, on the petroleum obtained for exportation. Looking backward on the proposil, it appears that if it were a sound one, the New Plymouth public should not havo turned it down. They had a patriotic idea of keeping the money in the place, and while admitting that their belief was on tho best grounds, it should have been evident at the time that a large amount of foreign capital would be necessary at that time of sparse New Zealand population, in order to develop the fields. The Provincial Council debated the proposal- for some considerable time, but in response generally to tho wishes of the public they refused the application of the syndicate by seven votes to five. It is interesting to note that during the course of the debate the Hon. T. (then Mr.) Kelly, who favoured tho syndicate, predicted that the timo would come whon locomotives would be driven . by oil from Moturoa, while' there would call in it the harbour, steam Tossels, whose motive power would be generated by oil combustion. THE OLD SPRING POLE. Messrs. Carter and their mates had mean-

timo set about the task of building a derrick nnd fixing n boring apparatus over (heir new well, which they had coiled tho "Alpha." As mny be easily understood, the plant was of a somewhat crude description. The photograph • reproduced, in these columns gives an, idea of its appearance. Nenr the lowest britco of,the' derrick may bo running across in an almost horizontal direction. J This bar supplied the motive power for boring.

It was called "the old spring pole," and consisted of a lengthy young tree 40ft. long, cut from the bush at the back of Pnketotara by a Mr. Thomas Weston, and dragged thenco by a team, of bullocks to tho scene of operations. Tho thickest end of the log was made fast in some way to tho earth, and then a rope was attached to the other end, which was narrow, and as it was pulled it bent backwards and' forwards something like a springboard, and administered taps to tho bore. Drilling in the early days was done in this way, and affords a remarkable contrast to tho modern system. Everything, however, went well so far with the "Alpha" well, and tho inscription, "To oil or London," had now- boen nailed, to the braces of the contraption. On April 28, ISGG, tho "Taranaki Herald" reported ! that oil in payable quantities had ken struck nt 05 feet, but that the company was going deeper in tho hope of making a flowing well. I3y May 19 they had reached 115 feet, and from an analysis of the oil obtained, Dr. Sydney Gibson, of Mel- ' bourne, declared that the oil was one of tho finest samples of petroleum ho'had ever scan. By August 7 tlio boro was down' 115 fcot, and by August 25, 171 feet. Encouraging prospects continued to bo met with, and on October 0 of tho same year an outburst of gas forced the water out of the bore and several gallons of oil were obtained. The expense of this work had, been very heavy, and, finding that they would liavo difficulty in financing further, operations, Messrs. Carter sold out their interests to the Taranaki Petroleum Co., which continued the boring operations. OTHER COMPANIES. Meanwhile other local companies had started operations. Tho People's Petroleum Company was the first of this lot, and commenced at the end of April, 18GG, with a capital of .£IOOO, which was afterwards increased to .£3OOO. A leaso was obtained of i\ acres of land at Moturoa, and tho boring machinery was received from Nelson, then a town of considerable importance. Boring operations, which commenced on May 21, about 500 yards from tho "Alpha" well, were marked with some ceremony. The well, which had a four-inch pipe, was christened the "Victoria," in honour of the Queen. At a meeting, held on Juno 30, the ■ following directors were appointed:—Messrs. Rundle, Carter, W. Humphries, Laurence, Windsor, W. R. Xing, and Snell. Oil was reached at 115 feet, and a second Bhaft was then sunk about 150 yards away from tho "Victoria" well. By July, 18G7, the company had got down 516 feet, and had spent .£1260, and as funds wero getting short the People's Petroleum Company was absorbed by tho Taranaki Petroleum Company, which had issued a prospectus

in April, 1860, with a.capital of .£IO,OOO in XlO shares, with'power to incrcaso'to .CIOO.OOO. 'Tlio. provisional directors'were: Messrs. R. Chilman (chairman), Warwick. Weston, J. King, C. Brown, and J. C. Sharlnnd. Mr. Weston ncted'.as secretary in order to'savo expense, but on'his pro'oeoding to England Mr. R. C. Ilamcrtoh (now of Wellington) was appointed permanent sccre'jary,.-ond.tho vacancy on tho hoard was filled by. Mr.-IT. Weston, the

present editor of tho "Taranaki Herald." FIRST OIL EXPORTATION. Four-wells were sunk on the beach, and in two cases the bores soon reached 310 and 318 feet respectively. The same company had by then completed its purchaso of the "Alpha" group, and on May 4, 18G7, the first barrel of oil was exported and shipped to Sydney. Tho yiold at this well was then about eight gallons a day,

which, later increased to 80 gallons a day. This result created 6omo excitement, but the return fell a good deal, and the company became rather dispirited. At 91 feet a new bora obtained 40 gallons of oil in from 10 to 12 hours, but a partial cessation again followed. About this time tho late Dr. Hector furnished a report on the field, the crui of which was a statement that in order to obtain an abundant supply of oil-boring would have to bo continued to a great deptt. This opinion has been proved to be correct. One of the new bores, cnlled the "Beta," was drilled to 510 feet. Oil indications had been met with in the last 130 ft., and baring was continued to GB4ft., when tho company having spent JMOOO, found himself with no more capital and decided to wind itself up. It had bored one well 081 feet, two others 310 and 318 feet, while two shafts had been sunk TliO feet each. SIR JULIUS VOGEL. In June 19GG, Mr. (afterwards Sir) Julius Vogel commenced to bore on Carter and Company's old lease, but there is no record that he did more (ban get favourable indications at 17 feet. Twenty-two years passed before any further operations were commenced, and then n company was formed in 18S8 by Sir Julius Vogel.Mr. (afterwards the Hon.) O. Samuel formed a company in England. A bore was put down, oil was struck at 575 feet, and llien the boring tools were, lest in (lie bore. The driller wished to pro- | coed with the drilling, but the company had lost heart, owing to (he fact that its capital was severely limited. Six years later Mr. Samuel formed a small New Plymouth syndicate and sank a bore to a depth of 875 feet. Two or three barrels a day were obtained at intervals, but the water could not be overcome, and tho bore was abandoned. A bore which was then sunk at Omata returned no indications at 1531 feet. A new bore was started at Moturca, about a quarter of a mile south-cost from the first, at the back of Mr. J. G. JlonoyQeld's residence. Oil was struck in great volume, at 008 feot, and at 910 feet the yiold was at the rate of ton barrels per day. Drilling wulinut-d and at 1070 foot oil ra t£«U mat xiihi jriion a fkt MoaiwU

and destroyed tho works. Tho yield then was eight barrels a day, but tho water trouble- was a, constantly recurring difficulty, and apparently tho management had no knowledge- of how to (jet over the trouble. Some seventy barrels of oil were sold to tho Railway Department, and tho bore was abandoned for another which started near by. Oil was struck at 1903 feet, but as tho indications did not improve at 2050 feet, this boro was

also abandoned. It will be seen from tho foregoing that'on almost every occasion oil was struck at those, ventures at Moturoa, showing that the region was distinctly oil-bearing. Tho trouble ail the time appeared to bo lack of capital and lack of sufficient knowledge regarding the mothods of working. Further attempts were made by Mr. Samuel and his company, but in each instance tho syndicate abandoned the job owing to tho returns

land Geological Department. Mr. Gor. don wont on to say that petroleum existed over a largo area, and that it wai only a question of boring to the requisite depth to get to tho proper source, 110 also referred to tho water trouble through fissures on tho coast lino. MR. FAIR'S EXPLORATIONS. In tho face of extreme difficulty, Samuel persisted in continuing his oil explorations,' 110 obtained tho services of Mr. R. G. Fair, who had had much experience in Rumania and America. Boring operations wcro commenced and in. May, 1894, Mr. Fair reported that he had struck an oil flow of ten barrels a day. Thero was intense excitement ia New Plymouth over tho news, and a l«g# number of peoplo marched down to U>9 well armed with bottles and tins in order to secure sonio of tho precious liquid, Tho well reached a depth of 1021 feet, and tho report slated that further operations wero impossible owing to the difficulty of shutting off tho sea water. It appears, however, that it was not the seawater, but mineral water. About this time the company shipped its first consignment of crude petroleum to* tho Balclutha Water Gas Company, later crude oil was purchased by tho Now Zealand Railways Department for the manufacture of gas at its Pctono workshops. NO. 3 BORE. Tho noxt bore which was put down tu Herckawa, about a milo from the present No. 1 and No. 2 wells, and on Mr. Mace'a farm. At 1534 feet, tho bore 6truck papa, and work was discontinued, although the settlers in tho placo 6tale that on many occasions they saw oil issuing from the well. Tho plant was then shifted to Mr. W. J. Honcyfield's Barrett Resorvc. Boring was commenced on what is now known as No. 3 bore, and with, successful results, j On January 11, 189G, at a depth of 895 feet, the drilling was in papa, with the water shut off, and nine days later there was an eruption of mud and oil, followed by puro oil, with great quantities of gas. OIL AS FUEL. For the first timo tho gas was used for fuel purposes in place of coal, a considerable saving being effected. Tho return from tho well was at least ton barrels a day, and this was considered to bo a payable proposition. Oil from the company's properties was now Belling at 15s, por barrel. Boring continued. A' big mud vein was struck at 915 feot, and

not being on a payable basis at 1055 and 2052 feet respectively. MR. GORDON'S REPORT. At this stage it is interesting to refer to a report in 1888 by Mr. H. A. Gordon, inspecting engineer to tho Mines Department. Ho declared, that he thought oil would be found in a N.W. S.E. direction and his opinion has since been borno out by Dr. 8011, late of tho New Zea-

largo quantities of gaa at 1450 feet. At 1970 feet tho drillers abandoned the bora because nothing but sandstone had been met with for tho last 120 feet, and it was considered useless to go deeper. It was a veil-known, fact that this particular formation contained oil. The drillings smelt 6trougly of petroleum, and from a possiblo producing point of view tho formation was tho best which had beon met with on the field. In tho circuin-

itances, ,lt is diffloult to understand, why tho drillers should-have come to such an astounding conclusion. Further bores wore put down on Mossrs. Putts, Okoy, and Veale's farms, with varying success. In every instance proceedings were usually cheeked through want of 'money. Mr. Samuels started another small eyndicato, ond oil was mot with at all the bores put friwn. • FURTHER 'ATTEMPTS. It is interesting to noto .that from 1891 to 1901, a period of ten years, nine bores ■were drilled respectively to 915, 1021, 1534, 1970, 2050, 309, 1500, 2052, and 1080 feot, at a cost of something liko .£15,000, including the cost of boring plants and quantities of casing. Between 189 G. and 1901 very little drilling was done on tho Colds, but in the latter year an Adolaido concorn started again, with a.capital of £7bo, and acquired all tho old boring leases. As was only to bo expected, tho work was hampered through lack of capital, although there wero plenty of oil indications. Mr, G. C. Fair, who was tho prime mover in the scheme, and a great enthusiast, then 'interviewed tho late Right Hon. R. J. Seddon, and obtained from him a promise that the Government would contribute £1 per foot for a boro to a depth of 2400 foet, at which stago Mr. Fair considered that he would strike a good Bupply of oil. Boring had been going on near the present freezing works Bite, and not far from where No. 5 well fs now situated, and the results at No. 5 prove that Mr. Fair was correct in his assumption. Nothing further appears to have been dono by tho email syndicate, and the plant was sold to a now company with d capital of 2000 £1 shares. Mr. Fair was made manager of the new oonoern, and drilling was continued on the old field. THE BIRTHDAY SUCCESS. Indications were good, and at the end of 'April, 1900, oil was struck at. the Birthday well, tho flow ' being 10 barrels in twenty-five minutes. Tho eruption was

of a most pronounced character, and a boom started in oil shares. Preference Bhare3 rose Tapidly from £5 to £10, but'even with these fine prospects the company did not succeed, although 6ome few, people made money by speculation. The well .was capped, and the company, on the plea that the capital was not sufficiently large, went into liquidation. A new;company was formed, namely, the Taranaki Petroleum Company, with a capital of 120,000 £1 shares. The vendors received 5000 fully-paid-up shares. It was considered that the tide had now properly turned, as from the many successful boring results there was no doubt about tho presence of petroleum. Want of capital had always been the stumbling-block, and it was thought that with a capital of £120,000 to work upon this difficulty had been at last surmounted. As is usual in times of excitement, many rash statements were made publio regarding the American Standard Oil Trust, which

many people declared had designs on the Now Zealand oilfields. Members of Parliament waxed virtuiusly patriotic pvor the business. It is difficult to eay what there was in tho rumours, .but possibly somo peoplo woro aware that the American Standard Oil Trust already had a representative working at tho wells. This individual is now on tho Maikop fields in Russia. Very likely tho outcry against foroigu oxploitation kept the Amoricans from going any further into tho matter. DEATH OF MR, FAIR, Shortly after the formation of tho Taranaki Petroleum Company, Mr. G. C. Fair died. His death was a sevcro blow to tho district, as it is mainly to his dogged porscverauco and faith in the theory of payablo wells that tho present success has been attained. At tho in-' stance of Sir, Joseph Ward, Sir Wilfrid Laurier'3 Canadian Mining Department sent out Mr. Simpson from Fctrolia, Canada, to fill Mr. Fair's place. Tho now manager was never able to cope with tho water trouble at the Birthday well, and it was abandoned. It is a fact, however, that at tho present time a small flow of oil is coining to the surface of this well with tho water, but the present very successful oil returns at No. 5 well will no doubt obviato any further necessity to reopen this bore. NO. 2 CHAMPION. Meantime boring operations had been' going on at what is known as No. 2 bore. Quantities of oil were met with at 1740 feet. Drilling proceoded, and by May, 1909, oil in large quantities was struck at 3030 feet. In 31 days the flow was 40 barrels. From Juno 10 to July 0 of the same yonr tho output was '248 barrels. During tho year 1910 No. 2 well produced 230,000 gallons of oil. It has now been flowing continuously for over 20 months, and its output ranges now from 65 to 75 barrels a week. It was this well which earned tho proprietary tho first instalment by the New Zealand Government of .£2500 for tho production of 250,000 gallons

about Decombor 21, when the boro was about 2240 feot deep, it was decided to try shutting off the water,' by the.aid of ceraonh This was done, and very satisfactorily, for at a depth of 2333 foot' the best well so far drilled in Moturoa.had been "brought in," with a production of ■about 75'barrfils, or 3150 gallons, per day. Bcforo this depth was reached, however, there we're many tremendous blow-outs' of oil and nnid. Tho eruptions were at times of 60 violent a character that tho overflow ran into tho gullies' for. 'somo time before it could bo controlled by the com-' pany's staff. On occasions the output, ranged from 40 to 75 barrels per day. The How now is from 35 to 40 barrels per day, and is considered to bo the settled production. FURTHER CAPITAL REQUIRED. It had been felt all alone that although the prospect of the Taranaki Oil Company were most excellent, full success could not bo attained or proper development mado without the use of further capital. In the brief history which has just been given of tho industry, it is very evident that partly owing to lack of capital and partly to a lack of technical knowledge, oil exploration in the main has been desultory and haphazard. In one of his reports published last year Dr. 801 l emphasised this fact. The Taranaki Oil Company very wisely decided to make overtures to a British group, and ultimately, after tho visit of Mr. J. D. Henry, the property was sold to the British Empire Oil Fields,' Ltd., with a capital of .£250,000, registered. This company is a subsidiary company of the British Oil Trust, Ltd., of which Mr. H. J. Brown is the managing director. Mr. Brown is also chairman of the British Empire Oil Fields, Ltd., and he is a director and' associated in the management of other oil companies, whoso aggregate capital runs into some millions of pounds. Mr. Brown is now in New Zealand, representing tho company, and making arrangements for the further development of tho. Moturoa fields.

of crude oil. While on this subject it is interesting to note that a second instalment of should be due about this time, the total production now being close upon 500,000 gallons. FURTHER SUCCESS. Boring operations were also continued at the present No. 3 well, known in the past as Samuel's well, and here again success Bmiled on tho efforts of the company. Oil was struck at 2800 feet, with a flow of 85 barrels per week. In March, the bore exhibited great activity, the flow sometimes reaching 40 barrels a day. The well is now down 4020 feet, with a flow of 40 barrels per week. ANOTHER CHAMPION, The last initial success of the company has been obtained on Gillbank's property, at a well now known as No. 5. Boring operations were commenced in 1910, and

THE OIL WELLS. .- * '■

GREAT POTENTIALITY OF THE FIELD. THE HISTORY OF THE ENTER- ' PRISE. The new history of the Taranaki oilfield will begin with tho negotiations entered into with a group of London oil men, having experience in most of the well-known oilfields of the world. British capital, technical ability, and a knowledge of oilfield management are to be forthcoming for Taranaki. Britain and New Zealand will work together to demonstrate to the world that tho Dominion contains one o£ its largest oilfields yielding a product which will command the highest price. Dr. Bell (formerly Government Geologist to the Dominion) is to be one of tho advisers to the London group who will operate a considerable acreage of tho field. Mr. J. D. Henry (the well-known oil expert of London) will also bo one of tho technical advisers to tho new company, tho Taranaki Oil Wells, N.Z., Ltd. Ho will, furthermore, have the bene, fit of the knowledge and experience of the Oil Trust and the British Empire Oilfields, who hold their organisation and •"heir departmental experts at the disposal of the now company. A NEW DIRECTORATE. The directorate is a strong one, having at its head tho Earl of Ranfurly, G.C.M.G.; Mr. Joseph Brailsford, chairman of the Ebbwvalo Steel, Iron, -and Coal Company, Ltd., ono of the largest nnd best-managed concerns in South Wales; Mr. A. L. Horner, K.C.M.G.; and Major Alexander, C.M.G., who, it is understood, has been taking a considerable interest in oil matters of late. The chairman of tho Oil Trust, Limited—Sir John Lane Harrington, K.C.M.G.—lias signified his consent to become a member of the board, but it is understood that at the present moment he is in East Africa, and consequently cannot join the board until after the company has gone to allotment. The general management will bo iu the competent hands, as we havo before stated, of the Oil Trust, Ltd., and their'associates, tho British Empire Oilfields, Ltd. These two companies are responsible, cither directly or through, their directors, for the management of oil-producing companies and oil-drilling companies in ninny portions of tho world. California, Ohio, and Pennsylvania claim their attention in America; Grosny and Baku,'in Russia; Tustanowico and Borislav, in Galicia— three of the largest oil-producing parts of the earth; Trinidad, Newfoundland, the West Indies, Nigeria, the Gold Coast Colony, Canada, and Labrador all possess their attention nnd their money. They havo interests in India, Cuba, Snkhalien, Syria, and Palestine. Portuguese West Africa also acknowledges them as owners of oil interests, and oilfields development therein proclaims their activity. In opening up a now field, tho driller with the largest experience over a number of oilfields is almost a necessity if tho difficulties that naturally arise are to b" overcome intelligently and with tho least expenditure of capital. Space will not allow us to mention all tho well-known names connected with this group, Thoro 1b Mr. Oswald Nottlefold, fovoraiiiff dlroo- . tor of fch* firm of. NeUlo&d'ei Mz. WU-„

MR. H. J. BROWN.

Tho following appeared in "Vanity Fair" of Juno ,21, 1911:— Mr. Henry John. Brown, so well known as a leading light of tlio Oil World, is in many ways a remarkable man. Born in 1563, he is the son of Mr. Henry William Brown, head of tlio manufacturing jewellery house of John Brown, Sons, and Eady, Ltd.-a firm started by that Mr. John Brown, F.TC.G.S.,'who devoted so much enthusiastic attention to the search for the ill-fated Sir. John Franklin and his gallant companions in Polar travel. Mr. John Brown, the grandfather of the subject of (his sketch, by his resources and his zealous counsel aided nearly all the private expeditions sent out in the endeavour to clear up the fnto of Franklin; and ho published a memorable volume on "The North-West Passage," just beforo the starting of the expedition under Sir Leopold M'Clintock, which brought homo the record of the adventures of Franklin and his comrades up to the year 18J8. In this work were set forth the author's views, afterwards fully verified. Mr. John Brown died in ISBI, and his business was continued by his thrco sons, one only of whom now survives. Mr. ITenry John Brown, who received his early education at London University College School, was brought up, as the son of'his father and his grandfather's grandson, in tlio jewellery trado; but his vigorous mind speedily jWned for expansion. Ho evinced in a pronounced degree tho possession ;: of that peculiarly indomitable fixity of purpose which characterised his grandfather, and, going boldly into tho City ten years ago, Mr. Henry J. Brown gave up the diamond business and plunged with perfervid vigour into the exploitation of oil and petroleum in the British colonies, and by his acumen and widely acknowledged integrity in duo course became a leader in the development of those immensely important industries. Ho acquired an interest in • the "Petroleum World," and engaged in many fortuitous speculations in the search for oil in Labrador, Newfoundland, Trinidad, New Zealand, Cuba, Nigeria, the Gold Coast, and elsewhere. At the present time business control • rather than newspaper work engages Mr. Brown's chief attention, though ho has travelled largely over the British colonies and in (he productive oil spheres of America. '■..-'. He is managing director of that great concern "The Oil, Trust, Limited"; (chairman of the British Empire Oilfields, Limited; chairman of tho North : Caucasian Oilfields, Limited; and was, in addition to the promotion of tho'' success of many subsidiary concerns, instrumental in opening up in Cuba one of the largest asphalt deposits in tho world. Possessed of a genial and engaging personality, coupled with a capacity. for hard work, unerring judgment, and exceptional organising ability, it is not to be wondered that Mr. Henry John Brown has become the mercantile magnate that he is. He is a keen sportsman, widely read, and of cosmopolitan tastes, nis business eminence has made him a member of the London Chamber of Commerce and a Fellow of the Institute of Directors; his observant travel procured him a Fellowship of the Royal Geographical Society. He golfs, when ho can find time, on the links of the Burnham Club; he Is a member of tho Eoyal Automobile Club; and also belongs to tho Upper Thames Sailing Club. Mr. Brown is a capital judge of a cigar, and a man of tho most unswerving fidelity. —Jehu Junior. W. A. Collis Photo, N.P.

liam Leonard, partner In tho firm of .Leonard and Co., Ltd., owners of tank steamers, and tho first to introduce this comparatively-speaking new mode of carrying oil to Kiißland; Mr. 13. 'J'. Boxall, cliitiriiinn. of the J'reinier Oil and Pipe f.inc Company, tialicia ; chairman of (ho Central. Carpathian Oil (Company, Ltd., C.inlicia;' also chairman of the Alpha and Triumph—nil nil-producing companies;' Mr. Charles'Perkins, of Perkins, Mackin-l'.-h, and Perkins of St. Albans, England, oil-lonl and' plant innnufncAurers and oilfield, owners and managers; and Sir. 11. .I..Brown, cliairman of the British C'iilifornirin Oilfields;' tho Oil ■ Trust of Ohio, the Central Oliio Oil Company, tho Dnlcham Oil and Bcfinery Company, andother companies, connected with, the development nf oilfields, so that tho Taranaki oiliields, or such part of thorn as me lo lie oiierated by tho Taranaki (New Zealand) Oil Wells, Ltd., will have .tho benefit of the advice of men well versed in (hi; management of companies, men who have previously acted in similar enterprises iu other parts of tho world. THE NEW ERA. Taranaki was first brought to Mr. Brown's notice by Mr. J. 11. Adams', who visited the field about four or fivo years nj!o, but Mr. Brown was so much engaged with s'omo of the foreign oilfields that it was impossible for him to turn his attention to New Zealand at that time. He was kept au courant with the happenings in the field by being associated with Mr. J. D. Henry, tho noted authority and part-owner of the "Petroleum World" newspaper, tho best-known technical oil journal issued in England, and read on every oilfield. It was not until the British Eiupiro Oilfields, Ltd., .was formed that it was possible to investigate tho potentialities of New Zealand as on oilproducing country, Then, only, was ifc decided to ask Mr. J. D. Henry, tho wellknown expert on British colonial oil enterprises, to visit New Zealand and report as to the possibilities and probabilities of Taranaki. Mr. J. D. Henry visited New Zealand in 1911, and again early in 1012, and although his first report to tho British Empire Oilfields, Ltd., was sufficiently satisfactory for them to desire participation in the Taranaki field, his later report—given to Mr. Brown in NewZealand, and to tho directors at Homepositively decided the question, namely, that not onlv had New Zealand an oilfield, but th'at it had, in Mr. J. D. Henry's amnion, a very considerable oilfield. Tho directors of the Taranaki Petroleum Company aro to bo congratulated, on (ho largo acreage, namely, somo 5000 acres, over which they have acquired oil rights in this field, situated, as it is believed, right in the midst of a. petroliferous area. Already Taranaki holds a record, having one well still producing oil at practically the fame quantity nor day two years after oil was first sli'iicK. Tlio Taranaki (Now Zealand) Oil Wells, Limited, will, at its inception, take over threo (lowing wells. This in itself should demonstrate tho value of the

field, for there are by comparison not a largo number of flowing wells in the world. Most of them, on the other hand, are put to pump a short time after oil is once struck. In fact, in two of tho most productive oilfields of the world a "Haspel" (which is a form of pumping) is used almost as as the oil-pro-ducing sands are entered. One hardly realises what the development of an oilfield means to the country in which that oilfield is situate!

OIL FOR RAILWAY FUEL. ' Tho advent of fuel oil has become an important factor in railway locomotion alone. For instance, it is estimated by the United States Geological Survey that from 20,000,000 to 25,000,000 tons of coal per annum aro already replaced by oil. Tho larger part of that is used for. locomotives. Furthermore, there are approximately 22,000 miles of railway trackage in the United States operated with petroleum, as a fuel, and probably it would not be far wrong to stato that .some 25,000,000 barrels of fuel oil were used by these railways during 1911. The oxponso of equipping the averago locomotive in order that oil fuel may be used is about .£IOO. Tho cost of steel banks for storing is about Is. per barrel, and the facilities for handling tho same at tho terminals is about half tho cost of that of handling coal. Tho navies' of the world are by degrees substituting'oil for coal. Tho only difficulty has been that tho supply has not been equal to the demand. Where oilfields are adjacont to the sea coast, tho mercantile marine aro already being propelled by the means of oil fuel, and as tho Taranaki field develops it can readily be soon that steamers will bo able to get their supply of oil between Now Zealand and Home from fields being operated under the British flag, namciy, New Zealand and Egypt. OIL FOR GENERAL PURPOSES.. The markets for oil of the quality found in , Taranaki are _ already here. Now Zealand alono requires G,000",000 'gallons of kerosene per annum; 2,250,000 pounds of paraffin wax; 2,750,000 pounds of candles per annum •, and 2.250,000 gallons of lubricating oils, machine oils, axle greases, and solid lubricants. Tho Australian requirements arc considerably more. In fact, 23,000,000 gallons of kerosene will not cover their requirements per annum. Messrs. A. and F. Craig, of Paisley, who made a very careful analysis of the crudo oil from the Taranaki field, state that no_ country in the world can compete with New Zealand in the manufacture of paraffin candles. Messrs. Craig in their report show what a largo quantity of motor spirit is contained in tho Taranaki crudo oil. Hero, again, wo have ono of tho most valuable by-products. Of this product thero is a considerable shortage throughout the world, which is hardly to bo wondered at considering the increasing number of automobiles. Tho introduction of tho "Diesel" will further increase the demand for oil fuel. In order that the best results may be obtained'from tho Taranaki field, tho Taranaki (New Zealand) Oil Wells, Ltd.. have decided to erect a refinery for tho separation of tho various by-products. Tho plans for tho refinery have, wo underbeen already submitted, and Messrs. A. and F. Craig, who havo already made a oonsidorahlo numbor of teats, aro satisfied that th« loiults shown by their injjywa vill be nroducfld whtn tho jßflawr. k la awriUoA, ,

THE OILFIELDS TO-DAY o .

HOW THEY BORE FOR, OIL. ■SOME VISITORS' OPINIONS; Nearly everybody who visits Now Ply- . mouth journeys down to historio Moturoa to view tho oil wells, tho derricks of which riso up liko elongated black pyramids, becoming' blnckor and blacker as they aro bespattered by their eruptions. There is nothing lovely about them, but their grimness is forgotten in their wonderful possibilities as industrial revenue producers, and insensibly, although it might bo stupid, one views each well as a golden butterfly story. Around tho wells thero is an everlasting petroleum odour, and tho stuff is seen everywhere coating everything with a slimy viscous covering, which, if it touches one's clothes, spells to them dark and irretrievable ruin. Tho oil comes out of tho pipes running in a dark greenish stream into an iron-reser-voir, where it separates itself from. the water, aud runs into tho huge underground reservoirs, which day by day and night by night aro becoming more and more taxed to accommodate tho precious liquid, for when they are running the wells go night and day, and;'thero is no eight hours' business about them. They work right round tho clock. No. 2 well, tho veteran of tho field, has been now flowing about twenty-seven months, and still turns out its average G5 barrels a week. During its career it has filled five huge underground reservoirs, which aggregate 183,000 gallons, while another is partly full. These tanks are usually shaped like a parallelogram, with a length of 3G feet, 17"fcct wide, and 16 feet deep.' They aro entirely covered in except for l a trap door to, each of tho caverns. Two of No. 2's tanks, however, aro circular, one holding 30,000, the other 28,000 gallons. The well is down 3030 feet. No. 3, which is dowu deepest of tho lot, namely 4020 feet, flows 40 barrels per week, and has now been in harness for nino months, during which timo it has accumulated about 05,000 gallons. No. 5, the latest development, is down 2333 feet, it is running from 35- to 40 barrels per week, and has- already filled a (auk of 40,000 gallons during the period it has been operating. THE WORKING PLANT. The position of a well is usually deter-

mined by the geologist. A derrick is then erected from 56 to 75 feet. The working plant comprises in New Zealand a 15-h.p. engine, a large driving-wheel, and two draw wheels for elevating and lowering the tools and casing. At.the commencement a shaft is sunk from .ten to seventeen feet, in order to get what is termed a sinker bar and drill' under tho walking beam, an uncouth-looking affair, which connects on to the driving : wheel,. am! which operates sinker and bar, so that it will, drop two feet a time at the rate of from 40 to 70 strokes a minute. The sinker bar is a straight bar of iron weighing from 7 to 14 cwt. (the bigger the bore the-- heavier tho bar), and cir cular-in shape. Tho drill, which is from three to five feet long, is screwed' on to the sinker bar. It is made of pure steel, 'something like a cricket bat in shape, but also like a big cold chisel. This drill is turned partly round by a man as it falls in order that tho incision may bo circular, and tho rate of progress about 80 feet per week. Some days not a foot i 3 made,.other days 35 to 40 "feet per day. Tho hardest stuff to get through is the softest formation, and.tho best progress is made through sandstone. After drilling: from 5 to 7 feet tho drilling tools have to be;'elcvatcd, when;a sand pump is lowered'to clean out-tlio drillings. A'fresh start is then made.' AgaiiV when in sandstone sharpened,' every.' 20 fccti'.'iii : papa,'.every--100'"foe£ Two■ drills" usually.' last"" 8000 feet. Tho. bores with" a lQr inch..casiu'g, which, is "carrie.d,,dowh to a depth of froin,2oo to.-700„feet,:wheu,8 r inch casing .is inserted; ; .This,. pipe, goes .'down to 1700,:qr.'20p0,fcct, and with; this pipiug; an-endeavour-us. made to shut off the wator'. -Fresh water ,is met at 20 feet, and on to 150 feoti with- a big flow at 1750 feet. At 2100-feet the-return-is oil-and water, -and-so-on :to-40M::feet,- when 'the water has a salty flavour. Six men work usually on a'bore. Casing is "an 'expensive item, .but much-.of it may bo used: more than once. Driving costs, under the present conditions, from 255. to 355. per foot, but there are quicker, and at tho same time cheaper, • methods in the oil-boring countries of the world'. The present com : pany at Moturoa has boring rights over from 8000 to' 10,000 acres -of laud. Tho royally is about 5 per cont,, and a labouring man who owns tho land on which No. 5 well is placed is n6w appropriating a handsome income running into J3lO per week on the oil returns. GAS AS FUEL. From the time that No. 2.b0r0 started to flow, gas from this well has been, used as a fuel, instead of coal, which'change'has resulted in a saving to the company of from £8 to £12 per weekl When drilling was started at.No. 5 the gas was run in pipe* from No. 2 to No. 5, a distance oi m ijwdj, m 4 }utd thgrt «1m m ft fy&_

: . j tlras effecting soother £& to jCIO per week ' savins. This is practically tho saving now ,| at all tho bores. Oil la also used ns fuel, ! but chiefly for demonstrative purposes, When visitors go to the'wells'they always ! place their fingers In the oil to sec if it is really oil. Travellers form all over tho world go down, to tho well, tho average now boing from 800 to 400 per month. j Thoy aro all Invited to express an opin- : ion on tho wells, hut usually their remarks are exceedingly commonplace Some, however, are decidedly original. An Eltham man, for instance, wrote: "Tho , best cow that will over be milked in Tara- j naki," Another man wrote: "Wanted, . another Dante." Another wrote: "A greasy miracle makes you think of your < future homo." A Maori wrote: "How wonderful is tho Pakeha. He spears tho heart of tho earth and up comos bubbles j -tho bubbles of wealth." Tho gem, how- , ever, is provided by an individual of a poetic turn of mind, who wrofco: "Ere shuffling off this mortal colli View Taranaki's springing oil. Such smell and odour, uproar and heat, ! Not Hell itself could belch or beat. Now, tremble all yo sinners, and if yon i can ) Tour peace you'll make with God and , man. Peacemakers, bliss bo on you falls, Big dividends instead of calls."- j

A HISTORIC MAP.

♦ | NEW ZEALAND SEVENTY TEARS AGO. There is in the possession of Mr. E. P. Webster, of Now Plymouth, tho first plan of tho town of New Plymouth, aud j tho islands of New Zealand drawn by Mr. F. A. Carrington shortly after his ; Arrival in Taranaki on February U. ; 1811. ; Tho _ wholo of the map supplies a I most interesting record of post history. ' Tho North Island mas marked "Now I Ulster," or "Eaheiuomauwc," while tho I South Island was named "Now Munstor" or "Tavaipoenamoo." Stewart Island ■ was also called New Lcinster. There was no Wellington nor Christchurch, these j nlaccs being marked respectively, Port < Nicholson and Port Cooper. Along tho West Coast of the North Island, ono notic;s the names Wnnganui, Petre, Patea, Wainrato, Opunakc, New Plymouth, Wnitara River and Molcau and. Taranaki. 1 Auckland, Rotorua Lake, LakoTnupo, and i tho W.iikato, Manawalu, and Rangitikei ; .Rivers were, also named, with Wairarapa. j Practically the only towns in the North ! Island mentioned were Auckland and New

W.,;A-."Coliis.'Photo, N.P. j

Plymouth. The present Southland and | Otago are marked "unexplored," while ; what is now known as Ashburton waa then recorded as Wihola Lake. Another lake was raised in what is now known | as Waitaki County and oalled To Wai 1 l'ocnammoo, or Lako of Grr-onstoue. Vaxt \ Chalmers was called Port Otako. Nelson j was' apparently ' (.ho only town in the | South Island in thoso days. - j Coming to the plan of the New Ply- • j mouth settlement, one is struck with the . | marks denoting Maori pas. There wore in, ! all fifteen. Near the banks-of the Wai- , .1 wakniha River, not . far from Devon i Street, there is the following note: "Tho j moa dinomis is said to havo frequented ! this place a few generations since." I "Brooklands" appeared as the property ! of Capliain King, but.there was no men- | tion of any other European residences. j .There wore several Government reserves sot out, also Devon and Victoria Park 6., 'St.'Germain's Square, Oetavius Place, and j a' cattle market. Tho following streets were named; Devon, Brougham, Robe, Dawson, Mount Edgecumbe, Morlev, Cut.' field, Barrett, Liardet, Cover, Eliot, Hob. son, Hitte, St. Aubyn, Young, Aubrey, Caino, King, Wallace, Down, Molcsworth,-■ Loach, Wakefield, Bell, Shortlake, Builer, Pendarven, Courtenay, Currio, Gard-' ncr, Hendrie, Lemon, Watson, Baring,Terrace, Elrington Place, and Oriental Crescent. » ' I CAPITAL VALUE. | ! CAPITAL VALUE OP TARANAKI i j," ; COUNTIES AND BOROUGHS, IM- j '■.:■ .'PROVED.A'ND UNIMPROVED. ] .'-,!'J'!.'' ■.. Counties. '■• I /- /-■ -~ Capital Value Unimproved . | -'.y'. >■■'.■ - Land and ' Valuo of - | .'''.;■-.;■'' Improvements. Land. .. j I.'-'-'--; ..• -.18!!!. 1011. 1891. 1911. I Comity... ! £ '■■■■', "."£■ .£ £ ■, ! Taranaki ..9G9.573 1,095,'05l 001,091 1,133,710 j Kgmont ■•■;'• — ■1,40(1,W7' — 837,006 I Stratford 560,345 2,034,314 417,500 1,221,562 I Whangauio- ■■-••. , ! I . niona — . 513,033 '■— 292,016 WaimateWest- — 1,204,022 — 921,169 Ilawera 1,217,43(5 1,945.«9il 807.857 1,400,174 Eltliam - 1,521,327 ■ — 1,007,151 Patea 823,075 2,251,709 522,322 1,545.28.1 i Awnkino — 013,023 — 421.910 I Knwhia 351,209 400,011 350,051 2,5:i9;905 ; Clifton.' 441,325 931,310 385,252 560,073 j ;';'■'- Boroughs. j New PlyI mouth 341,117,1,225,875 1C5.621 726,107 « Hawera • 84,834 487,324 37,914 232,9.' iS . Patea: '•' 43,378 -64,002 12,005 22,012 .Waitara — 195,851' — 90,080' '< Inglcwood — ' 158,209 •- — 07,434 : Stratford -.'..'365,229- - 189,51.'! : Bltham — 302,308 — 167,498 j In 1891 the present boroughs of Strat- ' ford, Elthnin, luglewood, and Waitara i formed parts of county districts, and possessed, no mu'uicipiil.-sttr'us. 1 - !r ""~ ~ " - ~" 7 i In France 28 gallons of wine per head , of tho population is consumed; in England only, a quarter of a gallon. i By the time the Panama Canal is fin- ! lehod the United States will halo paid I MAMA® f<« ltg i fi9Mtjr.u«tion,