SEARCH FOR OIL

Manawatu Times, Volume LIII, Issue 6631, 9 June 1928, Page 7 (Supplement)

SEARCH FOR OIL

SYDNEY, May 31. Hints of further developments at Boma, the formation of Builders, Ltd., incorporating a number of oil prospecting companies, and favourable reports from New Zealand, have led to great activity in. the oil share market. In Stock - Exchange circles in Sydney and Melbourne interesting reports have gained circulation in regard to the latest developments in Queensland. One is to the effect that the influence of the Commonwealth Government was exerted in certain quarters with a view to launching the scheme for the creation of Builders, Ltd., and its 26 affiliated companies. The intervention of the Federal authorities, it is reported, was actuated by a desire to crowd out “foreign interests,” which are reported to have designs on areas in Queensland, where a great deal of exploratory work has been done and much Australian capital spent. A strong “alien” organisation, it was said, had actually set machinery in motion for the purpose of obtaining rights over certain large areas of land, from which there seems to be a reasonable prospect of obtaining oil in commercial quantities. Such a supposition was based on results disclosed by preliminary activities of tho 'Boma and Lander companies. The chairman of the new oil groups denies that the Federal Government is standing behind the organisation, but that does not mean that it had nothing to do with its formation. Tho course of activities of the new group has yet to be decided. At the outset it will engage in a geological examination and scout boring. It is easy to understand the interest of the Federal Government in such work. Apart from the vast industrial significance of the enterprises, there is the consideration of the imperative need of providing oil for tho Australian Navy in peace time as w r cll as in time of war. That phase of the quest for oil would appear to amply justify a desire on tho part of the Government to protect and converse for Australia the benefits of production of an Australian oil supply. Tho area in which the 26 companies intend to concentrate their work is what has become known as the “Boma territory,” being adjacent to the property that is being explored by the Boma Oil Corporation. It was reported in Sydney that extensive American interests had endeavoured to obtain rights over areas which -would have enabled them to “snuggle” up against Boma, but that plan has been frustrated. Significance is attached to the

recent eager buying of Builders.’ shares by men in Melbourne and Sydney who arc not likely to have done so purely from a speculativ ' point of view. Builders, Limited, pro vide an additional safeguard agains foreigners by retaining the right to refuse to sanction the transfers of scrip Meanwhile, the Minister of Mines in Queensland has been darkly hinting of important developments at Roma, and has suggested that a definite announcement will be made shortly.