TARANAKI (N.Z.) OIL FIELDS N.L.

Dominion, Volume 33, Issue 281, 22 August 1940, Page 14

TARANAKI (N.Z.) OIL FIELDS N.L.

Last Year’s Operations The directors of Taranaki (N.Z.) Oil Fields No Liability in their report tor the year ended April 30, 1940, state that the company has the right (directly and through its subsidiaries) to receive royalty on oil won from areas in hew Zealand approximating 1400 square miles licensed by the New Zealand Government to New Zealand Petroleum Co., Ltd., m which areas the Taranaki group of companies was formerly directly interested. The first well sunk by New Zealand Petroleum Company, Limited (within the aggregate of areas mentioned) was located near oil seepages at Totangi Dome, about 20 miles north-west from Gisborne. Drilling was discontinued in November. 1939, at a depth of 5700 feet. The following is extracted from a statement issued by New Zealand Petroleum Co., Ltd., at that time:—". . . This step has been decided upon with great reluctance because of the apparent impossibility ol reaching greater depth on account of the unprecedentedly difficult drilling formation encountered. ... M bile the depth reached was not conclusive, the experience gained will prove to be of great value when the next well at Morere is drilled. It is anticipated that drilling conditions at Morere will be easier than at Totangi, as the strata are much less Steeply tilted than at Totangi; the directional drilling equipment will be available for use as required right from the commencement of operations, and the drilling experience gained at Totangi „ can be utilized to great advantage. . . .’ Drilling commenced at Morere, about a mile inland from the north shore ot Hawke Bay, in February last, and at the date of this report had reached a depth of 4108 feet, the formation encountered consisting of hard green shale. Up to the present, progress has been considerably more rapid than at Totangi, and the difficulties met with at that location have been absent at Morere. Royalty at the rate of 5 per cent, ot the value at the well's mouth ot oil which may be won from the Morere wed is payable to Gisborne- (N.Z.) Oil Fields, Ltd —in the capital of which Taranaai (N.Z.) Oil Fields No Liability has an interest totalling 96 per cent. Following upon geological and geophysical surveys extending over 20 months in the Taranaki province, several structures, i.-e., areas in which petroleum might be expected to accumulate, have -been discovered by New Zealand Petroleum Company, Limited. A. drilling test is now in progress on one of these structures, located near the town of Midhirst. This site was chosen by the seismographic method of geophysical sur'e'The'selected location is less than two miles from the boundary of the area in which the Taranaki Company (through Moturoa Oil Fields, Ltd.) is interested from the royalty point of view, and furthermore is only’ 19 miles in a direct line from New Plymouth, where three wells controlled by the Moturoa company continue to yield a steady if small production of oil. Should the existence of petroleum be demonstrated at Midhirst, it is readily apparent that the ground -between it and the producing wells at New Plymouth (over practically all ot which Taranaki (N.Z.) Oil Fields No Liability has royalty interests) becomes immediately more attractive as a potential source of petroleum. The Midhirst well ie being drilled by the latest type of heavy drilling plant imported from America, capable ot reaching a depth of more than 10,000 feet. The volcanic cover has been penetrated, and at August 6 the well had been advanced to a depth of 11-lo feet. Concurrently with its drilling activities, New Zealand Petroleum Co., Ltd., has continued geological and geophysica surveys for the purpose of selecting further well sites, so that on the completion of the wells now in progress no time need be lost in proceeding with further drilling. ~ ~ Production of oil from the Nos. 1, A and 4 wells of the Moturoa Company (in which the Taranaki Company holds 156.400 fully-paid shares of 5/- denomination, equal to ‘50.58 per cent., and including 5300 preference shares), has continued since your directors’ previous report. The total output of the three wells as at June 30, 1940, was: No. 1 well, 1341 barrels; No. 2 well, 31,439 barrels; No. 4 well, 6594 barrels. The directors continue to act without fees, and all administration charges remain at a minimum. COX BROS. (AUSTRALIA) Lower Dividend Rate Cox Bros. (Australia), Ltd., has advised the Stock' Exchange Association that a dividend of 5 per cent, on ordinary shares, and- 3i per cent, on both issues of preference shares, is payable on September 30. Transfer books close on bepThe interim dividend on the ordinary shares was 74 per cent. The distribution for the year is thus 12* per cent., compared with 15 per cent, for the tour preceding years. GREY AND MENZIES Reduction Of Dividends The accounts of Grey and Menzies, Limited, Auckland, for the year ended June 30, show a net profit of £2JJB, against £3579 in the previous year, and £4476 in 1938. The directors recommend dividends of 7 per cent, on both ordinary and preference shares, compared with 8 per cent, in the two previous years. It is also proposed to transfer £2OOO to reserve, making it £SOOO. Ihe sum of £lOOO was transferred m IJoJ. A profit was again reported by the subsidiary company, and a small divi(lend was paid. Recent results are:—

’The report states that this amount includes £1448 brought forward from 1939, while the adjustment of stock reserves required by recent legislation has been added.

1938 £ 1939 £ 1940 £ Brt. forward ... 1271 1308 2579* Net profit ... ... -1476 3579 2998 £5747 £4887 £5577 To reserve ... ... 2000 1000 2000 Dividends — 8 ... 400 pref., p.c. Amount 8 400 350 Ord., p.c. ... 8 8 7 Amount ... 2030 2039 1784 Car. forward ... £1308 £1448 £1443