MOTUROA OIL FIELDS

Gisborne Herald, Volume LXXIII, Issue 22200, 10 December 1946, Page 3

MOTUROA OIL FIELDS

PROFIT HALVED NO DIVIDEND PAYMENT Net profit of Moturoa Oil Fields, Limited, Wellington, for the year ended August 31. was £4GO. a reduction of £435 on the previous year. The directors report that the decline was mainly caused by an increase in management expenses arising from negotiations with the Government and other parties regarding the development of the Moturoa area. They did not recommend payment of any dividend. No dividends were paid last year. The net profit has been transferred to the appropriation account, increasing the balance to £2687. Negotiations with the Government for assistance for further drilling development had proved unsuccessful, but negotiations had been continued in other directions. So far there was nothing tangible to report, the directors state. "Oil sales at £2916 were slightly less than the £3171 the previous year, due to the total production from the wells being 53 barrels less and to an adjustment in price. Gross profit was £lO2 less at £1705. The managing-director. Mr. C. N. Taylor, reported that the quantity of crude oil raised was hardly sufficient to keep New Zealand Oil Refinery's plant in profitable operation, or to pay production and maintenance expenses.' “It is hoped,” he said, “that negotiations now in progress will be successful, as the comoany's financial resources arc not sufficient to carry on further exploration and drilling.''