TARANAKI OIL WELLS.

New Zealand Herald, Volume LI, Issue 15566, 25 March 1914, Page 10

TARANAKI OIL WELLS.

URGENT NEED FOR FUNDS. SHAREHOLDERS TO HELP. NEW ZEALAND CONTROL DESIRED. A meeting of the Auckland shareholders in the Taranaki (N.Z.J Oil Wells, Ltd., was held in the Chamber of Commerce yesterday to consider the report of two delegates sent to investigate the condition and probable prospects of the company s property in. New Plymouth. Mr- A. Page presided over an attendance of 25. The report of the delegates, Messrs. W. C. Macklow and P. V. Colledge, stated that the company was in a very bad financial. position, and, if shareholders did not lend immediate assistance, the works would have to close down, and the compa.ny go into liquidation. A sum of ,*O,OOO was required at once to save the company from disaster. The are holders had been already asked to l-nd this amount to the company, on © security of the plant and buildings, which cost £38,344, and were insured lor £25,000. The loan would bear interest at 10 per cent., and was repayable on or before December 31, 1914- Merely as an investment, this proposition would be a j good one. There had already been a response to the extent of £6000-upwards iof £3000 from Taranaki alone— the balance from other places. Comparatively .little had come from Auckland. i&e £6000 was being held in trust, pending the full subscription, but if the latter were not obtained, the sum m hand would be returned. After full consideration of the present position, and future prospects, the delegates strongly recommended ail shareholders to contribute to the loan. Success Nearly Assured. It would, they said, be a great pity if the shareholders allowed the company to fail, when success was go nearly assured. It was beyond doubt that oil was present in quantity on the company s property, and success must ultimately. attend the important oil industry. It was absolutely necessary that the head office and board of management should be in New Zealand. There were only 11.000 shares subscribed for in Losdon which, with 25.000 promoters' shares, gave a total of 36,000 shares held by British investors, as against no less than 232,C00 shares held -in New Zealand. Owing to there being no funds to pay workmen, work on the property was almost at a standstill. There were approximately 100,000 gr'.ons of crude oil in stock in the tanks, bjt it could not he refined, because there were no funds to pay wages. The average output of the bores now flowing was 13,600 gallons per month, as estimated from figures in the office. It was absolutely necessary to sink more wells in order t° obtain sufficient crude material to keep the refinery going. The refinery had a capacity of 10,000 gallons of crude oil per 2W hours, but working at 5000 gallons per day -would pay expenses. So far, it had worked at a loss owing to lack of crude oil. The company had about 260 acres on lease at Moturoa, and about 2000 acres with boring rights at Bell Block. At tho latter place two bores had been put down at an expense of £11,000. Indications were very good, there being a good pressure of gas, hut work had to be stopped owing to shortness of funds. Advisory Board's Proposals. Should the present negotiations with London fail, the Advisory Board would propose. that the capital be increased by offering 130,000 unallotted shares to shareholders at an underwriting discount of 20 per cent. These shares would be paid up to 10s each, and this, with a 4s underwriting fee returned, would leave ,6s per share, which, would produce £39.000 of working capital. It" was believed that the balance of 10s per share would not be required.

Mr. Colledge said that liabilities amounted to £8100. The amount required per week to pay expenses, including work at one ' bore, was £500. The value of refined products in stock was £2000, and of the oil in stock £2500. Calls in arrears amounted to £4285. It was not likely that other refineries would be put up at Moturoa, consequently the company would get the oil of other companies working there to refine. The opinion at New Plymouth was that some other companies were trying to depreciate the company for the purpose of acquiring it at a cheap price." The chairman said it was very improbable that any other company would do any refining at New Plymouth. It would seem that unless £4000 were raised to bring the total to £10,000, somebody would buy up the company's property at his own price. That would be a pity. If put on a safe footing the industry could be made a very fine one.

"Reap a Great Reward." Mr. J. Veale said he was convinced from his experience in New Plymouth• ithat there were a certain number of people who Vere trying to depreciate the value of the company's undertaking, their object being to secure the property at a nominal iprice. (Hear, hear.) If the shareholders would see the venture through, he was sure they would reap a very great reward. After further discussion had taken place, and a number of explanations had been made, it was decided" that each of the local shareholders holding 20 or more shares, should advance to the company, by" w,ay of. loan, a sum of not less than 10 per cent, on the nominal value of their shares, the amount advanced to be repayable on or before December 31, 1914, and bear interest at 10 per cent.

It was also resolved to request the Advisory Board to take any necessary steps to have the board of management transferred from London to New Zealand. MEETING- IN OHRISTOHUROE. MONEY TO BE PROVIDED. [BY TELEGRAPH.—PRESS ASSOCIATION.] Christchtrch, Tuesday. About 200 shareholders in the Taranaki Oil Wells, Ltd., met this evening, Sir Geo. Clifford presiding. Mr. Carter, chairman of the Advisory Board in Taranaki, stated clearly the financial position of the company,- and showed that it was necessary to provide a sum of £10,000 to enable the operations to be carried on. The meeting unanimously resolved to support the appeal, and further was of opinion that, provided the present difficulties were overcome, the prospects of the company were excellent.