PETROLEUM QUEST.

New Zealand Herald, Volume LXVIII, Issue 20982, 19 September 1931, Page 9

PETROLEUM QUEST.

: +ri COAL OIL, LIMITED. - INVESTIGATION OF AFFAIRS. DECISION OF SHAREHOLDERS. [BY TELEGRAPH.—PRESS ASSOCIATION.] WELLINGTON. Friday. At an extraordinary general meeting of shareholders of Coal Oil (N.Z.), Ltd., held in Sydney on September 10, a strong independent committee, comprising Mr. J. J. Cohen, district Court Judge, Mr. E. L. Thompson, a director of Sargent's, Ltd., and other important industrial concerns, and Mr. Garvin, a well-known Sydney business man, was set up to investigate the affairs of the company. This committee will submit its report to shareholders at an adjourned meeting t<» be held in Sydney in October. HISTORY OP COMPANY. GEOPHYSICAL SURVEYS. The operations of Coal Oil, Ltd., have been principally carried on in a search for oil at Omata, near New Plymouth, a few miles west of the Moturoa well. Tho company was formed in Sydney in 1926 for the purpose of exploiting coal areas at Westport and believed oil-bearing country at Waipatiki, Hawke's Bay. The nominal capital is £750,000 in £1 shares. Of this 227,322 shares were allotted ns payment for services rendered arid in response to previous appeals, and at the end of 1929 a further £IOO.OOO was sought to enable the. company to carry on development in Taranaki. For over two years prior to the company starting at Omata, a survey of tho area was carried out by experts of tho Elbof Gcoplnsi'cal! Council, which applied every phase of geophysical science before making its recommendations that oil accumulations would be found in satisfactory quantities. The council, in part payment for its services, accepted shares in the company. While it was not claimed that oil on the company's sites was a certainty, Coal Oil, Ltd., held that the utilisation of the geophysical survey removed much of the risk of "blend boring. ' The most up-to-date plant ever used in Australia or New Zealand was erected, including a steel derrick 122 ft. high, the highest employed in the district. Other features were the installation of the first modern rotary drilling plant in Taranaki and a preparedness to search greater depths than have hi'.herto been reached in New Zealand. Operations were commenced in 1930, practically simutaneously with those at the Moturoa well. Commencing with a bore of 21in. diameter, the company stated it was prepared to drill to 8000 ft. if necessary, nearly 2300 ft. deeper than the original Blenheim well, which was the deepest well on the New Plymouth field. The first oil, horizons were expected between 2200 ft, and 5000 ft.. but the more important ones below 5000 ft. Drilling continued for about 18 months, but in August Inst, when a depth of over 3403 ft. had been reached, a cablegram was received from headquarters in Sydney giving instructions for operations to cease and to make the .plant secure. The men were paid off, the office at New Plymouth closed and since then the plant ha 3 remained at a standstill.