THE SEARCH FOR OIL.

New Zealand Herald, Volume LXV, Issue 20088, 27 October 1928, Page 11

THE SEARCH FOR OIL.

GISBORNE DISAPPOINTMENT.

FORMATION OF THE STRATA.

f lIV TELEGRAPH. —OWN CORRESPONDENT.] GISBORNE. Friday.

Disappointment has attended the efforts to discover oil in payable quantities on the site of the Gisborne No. 1 well at Morere, according to a statement issued yesterday by Taranaki Oilfields, Ltd. The disappointment is not associated with the failure of oil indications, hut with the formation of the strata at considerable depths, which has definitely put an end to drilling on the No. 1 site. The company has decided to move its drilling crew to the No. 2 site at Mangaone, where a further attempt will bo made to tap the oil pool which geologists stale probably exists beneath Morere.

Activities in connection with the change of plans have kept the officials of the company busily engaged, and it was impossible to gain from an authoritative source to-day any information beyond that contained in the brief'notice issued yesterday Tt has been known for some time, however, that caving has been occurring in the well at the No. 1 site, and that the drilling gang had been endeavouring to overcome the difficulty which had led to the bending of the casing. Only a few days ago it was chronicled that the bend in the casing had been straightened, the feat being accounted a notable one, but apparently the fundamental trouble connected with the caving was too much for the equipment available. This is the third well started near Gisborne at which operations have had to cease after the expenditure of a considerable amount of time and money by the company. The other two were in the Waiapu district, and they gave satisfactory indications of the existence of oil, but were not persisted with owing to the failure of the strata. The site of the Gisborne No. 1 well is 6] miles from Waikokopu Harbour, on what is known as the Morere dome. Drilling was commenced in July. 1927, and was continued to a depth of 3025 ft. The Gisborne No. 2 well is on the Paparitu dome, some six miles west of the Morere dome. Drilling was started last April, and the well is now down about 1600 ft. Other wells sunk by the company have been:—ln Taranaki, Tarata, 5010 ft.; iMotorua, 4360 ft.: Okoke (suspended). North of Gisborne: Waiapu No. 1, 2540 ft.; Waiapu No. 2, 3010 ft. DUNEDIN GRAIN PRfCES. WHEAT, OATS AND CHAFF. [BY TELEGRAPH.—OWN CORRESPONDENT.] DUNEDIN, Friday. There is very little to record regarding the milling wheat market. Prime quality ' Tuscan is worth. 5s 9d per bushel, sacks extra, on trucks at country sidings, and other quality Tuscan round about 5s Bd. So far as red wheat and velvet are concerned there is not any offering. Hunters is worth 6s on trucks, but the prices for velvet are irregular and not quotable. Fowl wheat is quoted at 5s 9d, f.0.b., sacks extra, Canterbury ports, and there is.no shortage of this quality. . . Owing to some of the Canterbury forward sellers of oats having to come on the market to cover their commitments there has been little more inquiry for A grade, which are to-day firm at 4s, f.o.b. There is not the same demand for B grade, which are quoted at 3s 6d. The discrepancy in the prices is brought about by the' fact that the demand for A grade is really of a speculative character. The potato market is weak and the end of the season for old tubers is now in sight. Prices for old potatoes must, however, be considered as very remunerative, namely. £ll to £ll 10s per ton, extruck, Dunedin. The chaff market remains firm. Most of the local requirements are being drawn from Canterbury. The price for best quality is round about £6 a ton, with medium quality at £4 to £4 10s. There is nothing to report in the seed rrarket, and business is very quiet. GOLD FROM SLUICING DEPOSITS. NEW VENTURE IN OTAGO. [BY TELEGRAPH. —OWN CORRESPONDENT. ] DUNEDIN, Friday. In the Lawrence district there are a number of goldmining claims which were worked out in the early "seventies" by the ordinary sluicing method. The deposit left v bj' the sluicing process is known as cement conglomerate, and with the assistance of the Mines Department a company that has been working in the district since 1900 is about to try to win the gold that is generally admitted to be there. Up-to-date machinery has been obtained for drilling holes and for crushing the cement. Officials of the Mines Department have gone fully into the matter, with the result that the Government has authorised the payment of a subsidy equalling half the cost of drilling and proving the values of the deposits. The results obtained so far indicate that it should be a payable proposition to work these deposits, and it is likely that if this venture proves a success other companies will be promoted to work the deposits, not only at Lawrence, but elsewhero in Otago.

SHEEPSKINS AND HIDES. RATES AT WELLINGTON. [BY TELEGR.U'H. —OWN CORRESPONDENT.] WELLINGTON. Friday. Tho fortnightly sala of sheepskins, hides, tallow and sundries was held to-day, when good average-sized catalogues of all classes were submitted to a full representation of buyers. Sheepskins; The market lacked competition and prices for all descriptions were id to Id per lb. lower on previous quotations. Tho London sales have reported a, decline and this was rejected at the snle. Salted skins wero firm at late rates, with nil occasional rise. Hides: Fair-sized catalogues wore offered. Consequent _on unfavourable reports from ovorseas bidding was not keen and a weaker demand was met with heavies at id to Id per lb lower, and mediums id to id lower. Lights ruled nt pur. Kips were in better demand and showed a slight rise on Inst quotations. Yearlings were weaker by id to id. Calf were in request and weights to slb sold at par, 61b to 81b being Id lower. Tallow: Strong demand at late rates. Following is tho range of prices; Sheepskins.—Halfbred, 13! d to 143 d; pells, salted. 2s Id to 4s 2d; fine crossbred. 133 d. to MJd; quarter wools, to 5s sd: medium crossbred, 12Jd to 12jd; half wools. 8s Gd to 8s 3d; coarse crossbred. 11 Jd to 12d.: three-quarter wools, 10s to 12s lid- half wools, 9d to Hid: full wools, 10s to 12s lid: quarter wools, Sid to 9}d: extra large, 13s 2d; pelts, 6d to lOd; lambs, 2s' lOd to 3s 2d. Hides.— Ox. 331b to 441b, 7 3-Sd to 9Jd: •IMb to 521b, 75d to B'd; 531b t.T 591 hj, 8d to <Jid; GOlb to G9lb. 9 5-8 d to 10 l-8d; 70lb and over. 9Jd to 9 7-Bd. Cow; 331b to 391b, Gd to Old; 401b to 48lb, s?d to 9d; 491 b and over. Gjd to 8 7-Bd. Kip: 251b to 321b, Gid to llld; 1.71b to 2-tlb, G l-8d to 11 3-8f" Yearling; lllb to IGlb, 10 3-8 d to Calf: Gib to Btb. 17id to 18d: lib to slb,'9d to 17-M. Tallow.—ln casks, 28s to 31s-. in tins. etc.. 21s Gd to 28s Gd. Sundries.—Cow tails. 17d to 19d. i