SEARCH FOR OIL

Dominion, Volume 27, Issue 188, 8 May 1934, Page 12

SEARCH FOR OIL

Vacuum-Taranaki Agreement According to a circular to shareholder# issued by the Taranaki (N.Z.) Oil Fields, N.L., the Vacuum Oil Company Proprietary Ltd. has been granted an extension of time to December 31 for notifying whether it intends to drill on the properties of the Taranaki group. In August, 1932, the terms were announced of an agreement entered into by the Taranaki Company and its mibeidiaries with the Vacuum Company whereby the latter undertook to carry out a geological examination of the properties of the Taranaki group on the east sida of the North Island of New Zealand. Since then such an investigation has been actively prosecuted by the Vacuum Company’s technical staff, brought to New Zealand for the purpose. The agreement requires Vacuum to give notice before the end of August, ( - 1934, as to whether it intends to drill or not in the territory whieh it is examining ; it is only in virtue of carrying out drilling operations that Vacuum will become entitled to acquire a proportion of the Taranaki group's geological “structures.” If it notifies its intention to drill, it is bound to commence drilling by the end of 1934 unless it pays a substantial cash sum for the right to defer commencement of drilling until the end of 1925. After commencement of drilling Vacuum may retain its rights only by continuing to drill or by maintaining payable production. The Vacuum Company has entrusted its investigations in New Zealand to geologists of high standing and wide experience, who have made good progress m their study of potential oil country over an area several thousands of squar# miles in extent. It is felt to be necessary. however, that these officers should, at the present stage, return to America (and possibly visit other countries) to consult their technical colleagues on vnr ’- ous aspects of the geological survey, and it has become evident that they will not be in a position to submit a final recommendation to their principals by August 31 1934. In the circumstances the directors. after discussion with the Vacuum Comnnny. have agreed to grant an extension of the term within whmh Vacuum is to notifv its intention te drill or not by four months—the dates by which drilling is to be commenced (in the event or n favourable decision), and to which e “onrion fee” and rrimhnrsement rentals ore borne b Vnonum being taken further slmHarlv. , The Vacuum Comuanr is now oblisstto anr ounce its <]ecis ? on on tion of drilling by December 31. 1934.

THE PORT MELBOURNE. The C. and D. Line advises that tW Port Melbourne is now to leave Lyttelton to-morrow for Gisborne, Napier and WeJ iington to complete her Homeward loadfnc. She is due hero on May IS and «to clear this port finally on May 19 London via Cape Horn.