NEW ZEALAND OIL.

Evening Post, Volume LXXIX, Issue 116, 18 May 1910, Page 3

NEW ZEALAND OIL.

COMPANY FLOATED IN LONDON. THE GISBORNE FIELD. (From Our Own Correspondent.) LONDON, Bth<&pril. A wee* or two ago I mentioned tho probability that there would shortly ba a boom in oil properties from which. New Zealand might expect to reap some considerable benefit in the way of capital for the operation of the valuable fields which are dotted all over th» Dominion. At that time negotiations were in hand for the capitalisation in, London of an extensive area which was held under options by Mr, W. Lissantl Clayton, of Gisborne. The underwriting of the issue has now been arranged, and it is expected that the flotation, s<> far as the London shares are concerned, will bo completed within the next few days. The company will be floated under th* title of the New Zealand Oilfields. Ltd., and the capital will amount to £200,000, in two million shares of 2s each. The sum of £80,000 is set apart for working capital. The consideration paid by : the company for the purchase of tha concessions amounts altogether to £110,750, which is to be paid, as usual, partly, in cash and partly in shares. The vendors nave asked to be allowed to *eserve two hundred thousand shares, forj subscription in New Zealand. Besides the London board of direo* tors, there is to be a local board in. New Zealand, consisting of not les« than three members, and remunerated at the same rate as the London board. FEATURES OF THE SCHEME.'" The company is being formed for. the purpose of investigating and developing forty-four concessions extending over au area within a short distance of Gisborne, and all within the county o£ Cook. There is a report made by" Mr., Frank A. Rich, B.Sc, M.A.1.M.E., M.1.M.E., for the original vendors and another by the celebrated expert Sir Boverton Redwood and his colleague, Mr. W. H. Dalton, who say : "Some of the many exudations of pa* troleum and gas in the Hawkes Bay district have been known for more ttiaii forty years, and several attempts liave been made to exploit the oil-bearingi beds of which they attest the existence. The failure of these to establish commercial production of oil has resulted from various causes?, ignorance being a preponderant element in all. Haphaz-> ard selection of drilling sites, with iittla or no perception of the nature or structure of the beds to- be penetrated or o£ the probable depth to oil-bearing rock, if present ; unsuitability to local conditions of the system of work adopted: inadequacy or inferiority of. material used;| lack of technical-skill to combat difficulties encountered, and want of knowledge in other directions, have courted (and generally won) failure in even the richest fields. It is already known from, published and unpublished reports thafc several well-marked anti-clinial lines traverse the whole region, more or less,, in, a north-easterly direction, but curvingVto and fro, and doubtless varying, also \a degree, from sharp fold to slight undulation. From our general knowledge' of the district we are of opinion that,- with careful selection of the sites for the wells proposed to be drilled, there is a good' prospect of finding petroleum in com-, mercial quantities." Sir Boverton Redwood has consented to act as technical adviser to the company. In a report on a sample of oft from the Waitangi bore which had been submitted to him for analysis, Sir Boverton remarked: "From particulars which have from time to time been, placed before me, I am hopeful that New Zealand will become an important contributor to the petroleum supplies of the Empire under the British flag." NEWSPAPER COMMENTS. The Financial Times of yesterda.jp said : — Another attempt to develop tlie petroleum resources of the Empire materialises to-day in the inception of .tho New Zealand oilfields. . . The prospectus lays great stress on the importance of an adequate oil supply for the Empire, and draws attention to the articles that havo appeared in the press on this subject of lat-e. These matters, however, are common knowledge, as is also the fact that there are undoubtedly large potential sources of supply in -New; Zealand. . „ That the area is -easily accessible for transport is, however, a tangible fact. Some twenty of the conces^ sions are subject to termination on six months' notice if work has not been commenced, but as this notice has ivoij been given it is> concluded that the concessions will not be terminated. It is not made clear, however, whether work has been commenced or not. . . The success ot the company must, of course, diepend upon whether the production of oil can b& realised to an extent adequate to placing the undertaking on a sufficiently remunerative basis, and the pros-* pectus is not conclusive in that rei spect. ' ' The Financial Times and The Financier, content themselves with merely quoting the prospeotus, and the Morning « Post says "the venture is Irankly speculative." The Daily Express thinks the company is fortunate' in that Sir Boverton Redwood haa consented to act aa technical adviser. THE TARANAKI FIELD. In yesterday'^ Financier there was ai long article relating to New Zealand oil in general, and # the Taranaki field in particular tt says theie are aoundant) signs that m New Zealand there exisfa one oi tho most important deposits of * petroleum in the British Empire.. After, mentioning that the Admiralty is watching event* very closely in New' Zealand with respect to the oil discoveries, .the article concludes : — "Considering • the investigations which have been made, the character oi the samples, and also the fact that several small companies arc procuring oil in commercial quantities, it is quite evident that this Taranaki oilfield may easily become .the source of a great industry of vast importance to the colony and an Imperial asset of nc small consequence. "• •; ~