QUEST FOR OIL.

Gisborne Times, Volume LXVIII, Issue 10752, 24 November 1928, Page 2

QUEST FOR OIL.

TARANAKI COY.’S REPORT,

CONFIDENCE UNSHAKEN

Confidence in the ultimate- successful outcome of the search for oil m the Dominion is expressed by the directors of the Taranaki Oil Fields Company, Ltd., in their annual report to shareholders for the year ended July 31, 1921. The report states that owing to persistent caving met with at the Gisborne No. 1 weM below 3,000 ft. drilling operations there had to he suspended. It is considered, however, that the considerable pressure of inflammable gas present at the bottom of No, 1 (which is now believed to be within a short distance of the first objective—gas and oilbearing sandstone) is directly in accord with the geological forecast tnat gas, and not oil, might be expected in the well if either the drilling location proved to be too near the apex of the dome structure or the structure is even larger in extent than surface indications suggest. The director consider that nothing which has occurred since drilling was commenced at either location has discounted the prospects of oil production on the selected well sites, and that the occurrence of inflammable gas in Gisborne No. 1 corroborates the theory upon which the location was selected. The serious difficulties met with and overcome so far and the experience gained lead the directors to the belief that adequate tests of both well structures can be completed.

Forecasts within close limits cannot be made as to further depths to be drilled before tlio first objective horizons are reached. Gisborne No. 1 is still some hundreds of feet above the lower limit (3,'300 ft.), of the range of depth within which the company's geological advisers expect cretaceous strata, to be entered, the first in which favorable developments may be looked for. The evidence obtained from the well samples, however. supports the belief that this upper objective is not far below tinpresent. bottom of the well. The data in band go to show that the rock sequence of Gisborne No. 2 well is the same as that at No. 1. Sufficient, particulars are not vet available, to justify a definite depth being indicated for the upper limit of the cretaceous strata in No. 2, but it is possible, by comparison of data, to indicate, tluit the, difference from No. 1 will not be as much less as was expected.

STATEMENT OF ACCOUNTS. The balance sheet ishows the following liabilities; Capital paid up, £170,561 (last year, £463,111), including capital p.aid up in money, £303,501 (.£303,611), and paid up otherwise than in money, £167,000 (£159,500) ; option extension receipts £19,471 (£19.471); forfeited shares account £489 (£439); insurance fund reserve. £537 (£1000); income tax provision, £373 (£702); sundry creditors, fi:5629 (£16,381); deposit account, £5150 (£15,654)-; a total ol £500,210 (£517,046). Assets set down include the following: Property account, £133.424 (£131,661); freehold properties, £3,650 (£3.650); general development, £12,0-51 (£12.28-4); drilling, £60,01-5 (£59.580); shares in other companies, Gisborne OilfielcJsj £107,23.7 (£84,737); Waitangi .Oilfields, £15,000 (£15.000); and AVaiapu Oilfields, £48,750 (£4-3,000) : a total under tinhead of £170,987 (£144,736).; stores and tools, £22.8‘30 (£35,135); sundry debtors. £41,087 (£25,913.1; deposits and accrued interest, £40,104 (£85,243); bank and cash accounts, £1,123 (—) ; brokerage and _ underwriting commission £9,487 (£9,487); a grand total of £500,210. A note is attached to this year’s item sundry debtors, explaining that a partion of the amount (£41,087) represents the cost of plant and materials charged to subsidiary companies, which is subject to repurchase at valuation. The annual meeting will be held in Melbourne on December 17.