TARANAKI OILFIELDS.

New Zealand Herald, Volume LXII, Issue 19195, 8 December 1925, Page 7

TARANAKI OILFIELDS.

PAST YEAR'S OPERATIONS.

COMPANY'S VIGOROUS POLICY.

PLANS FOR THE FUTURE. The first annual meeting of tho Taranaki Oil Fields, Ltd., was held in Sydney recently. Mr. W. A. Watt, chairman of directors, presided, and in moving tho adoption of the reports and balance-sheet —a summary of which was published in tho Herald on November 20—he said that tho company was engaged in developing a commercial oilfield better equipped, more strongly supported by its own communities, and with more substantial hope of success than any company that had hitherto trodden tho same path. Mr. Watt said that tho directors appreciated tho importance to both Australasia and tho Empire of the success cr failure of the efforts, and it was their aim that every department of tho operations should be carried on with tho benefit of the most eminent technical advice ;Vld tho highest class of equipment and service. Notwithstanding the active, though somewhat unregulated, search for oil prosecuted in New Zealand in former years, tho company was practically a pioneer, with little assistance from the results of previous work. The oil industry in unproved country was inherently uncertain, and as an insurance against the possibility of non-success on the properties originally acquired, the directors realised that it was essential to take up interests in other areas of promise. Of the new areas acquired, said Mr. Watt, they believed tho East Coast regions possessed tho most impressivo possibilities, by reason of their extent and tho positive character of tho indications recognised by the company's geologists. Tho report by Mr. F. G- Clapp on these areas and his recommendations based on many months of personal investigation on the spot, were very encouraging. The directors felt that a vigorous leasing policy was necessary and desirable, but it was necessary that the leasing campaign should be confined t-o areas of definite geological promise. Boring had not proceeded quite as rapidly as had been expected, but the caution exercised by the drilling staff would bear it 3 fruit later if oil in commercial quantity were found. Regarding the future, Mr. Watt said that without the right kind of preliminary work and without scientific drilling with the best of equipment, material and personnel, a company could fail of success where all the natural conditions were favourable. So far as one could speak definitely in expectation of the final proof which tho drill afforded, favourable conditions for production, storage and delivery of petroleum were present in tho company's properties, and it was therefore the first responsibility of the directors t-o see that the prospects of success were not discounted by any lack of care or thoroughness in the field work. The expenditure, so far, the speaker continued, had been heavier than first expected. It had cost more to put down tho wells and the company had spent a good deal of money in the acquisition of rights over new areas. The relations of the company with the Government of New Zealand were harmonious and the work was being conducted in a spirit of co-operation with tho departments concerned. The motion for the adoption of the reports and balance-sheets was agreed to. A resolution was passed fixing the sum to be paid as directors' fees for last year, and for the current year at £2500 a year. A motion was agreed to giving effect to tho recommendation of the directors that the period for exercise of the options to purchase shares at a premium of 15s a share given on the first issue of capital be extended eight months to March 31, 1927.