OIL PROSPECTING

Grey River Argus, 6 August 1940, Page 4

OIL PROSPECTING

IN GREY DISTRICT ABOUT TO BE STARTED Big Californian Coy. CONCLUDES AGREEMENT WITH N.Z. OIL CONCESSIONS, LTD. Prospecting for oil in this district is about to be commenced. An agreement whereby the Superior Oil Company, of California, will undertake prospecting in the Marsden Riding of the Grey County has been concluded with New Zealand Oil Concessions, Limited, the holders of the license. The agreement, which is the result of long negotiations, is highly satis - ractory to New Zealand in the respect that the Superior Oil Company is providing the necessary plant, ana capital for prospecting, and drilling on a basis such that payment for such is the first charge on profits should oil be found. Under the agreement, the Superior Oil Company are taking up seventyfive per cent, of the shareholding in New Zealand Oil Concessions, and any subsequent profits will be divided on that basis as between the American and the New Zealand shareholders.

In the petroleum world, the Superior Oil Company is known as the largest independent oil prospecting concern in the United States. It holds the world’s record for drilling. 'This company, as the result of preliminary survey work, is satisfied that the Grey district is an encouraging field for operations, and among the encouraging signs are the oil seepages at Kotuku well-known to West Coasters, which have beqn subjected to prospecting in former years, and revealed a very definite oil flow. The head office of New Zealand Oil Concessions Ltd., is at Christchutch, the directors representing American interests being Mr R. E. turner, geologist, of Los Angeles, and now of Palmerston North; Mr J'. W. Ward and Mr F. C. W. Anderson, of Wellington. Directors representing New Zealand shareholders are Messrs W. S. Thompson and G. E. Lewis, both cf Christchurch.

The directors of N.Z. Oil Concessions, in their third annual report, cn May 31 last, intimated that an arrangement for prospecting in Marsden area was in prospect, and it has now been approved by the Government. This development will be welcome news for West Coasters, who have long believed that tne oil prospects in the district were worthy of far better testing than they have previously been given.