SEARCH FOR OIL.

New Zealand Herald, Volume LXIX, Issue 21115, 24 February 1932, Page 9

SEARCH FOR OIL.

ORDER AGAINST COMPANY. COMPULSORY WINDING-UP. (Received February 23. 5.5 p.m.) SYDNEY, Feb. 23. The Equity Court of Sydney lias made an order for the compulsory winding-up of Coal Oil (New Zealand), Limited. Mr. A. Campbell has been appointed official liquidator. The operations of Coal Oil, Limited, have been principally carried on in a search for oil at Omata, near New Plymouth, a few miles west of the Moturoa well. The company was formed in Sydney in 1926 for (he 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 as payment for services rendered and in response to previous appeals, and at the end of 1029 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 the area was carried out by experts of the Elbof Geophysical Council, which applied every phaso of geophysical science before making its recommendation that oil accumulations would he found in satisfactory quantities. The council, in part payment for its services, accepted shares in the company. AVhile if. was not claimed that oil on the company's sites was a certainly, Ooal Oil, Limited, held that the utilisation of the geophysical survey removed much of the risk of ''blind boring." The most up-to-date plant ever used in Australia or New Zealand was erected, including a steel derrick ]22ff. high, the highest employed in the district. Other features were (ho installation of (he first, modern rotary drilling plant, in Taranaki and a preparedness to search greater depths than have hitherto been reached in New Zealand. Operations were commenced in ID3O, practically simultaneously with those at the Moturoa well. Commencing with a bore of 21 in. diameter, the company staled it. was prepared to drill to 8000 ft. if necessary, nearly 2500 ft. deeper than the original Blenheim well, which was the deepest well on tlie New Plymouth field. The first, oil horizons were expected between 2200 ft. and 3000 ft., but the more important, ones below 5000 ft. Drilling continued for about 18 months, but in August last, when n, depth of over 3400 ft. had been reached, a. cablegram was received from headquarters in Sydney giving insl Mictions 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 has remained at. a standstill. A committee of shareholders, who have bad charge of the company's affairs since October, reported to a, meeting of shareholders in Sydney at the beginning of February (hat the company had been placed in compulsory liquidation by a New Zealand creditor. The committee was of (he opinion that liquidation was necessary, but that the shareholders were not likely to receive any return. The. company's rights over the Omata. leases, near New Plymouth, were forfeited, but two of the committee bad an option over (he properly on behalf of the subscribing shareholders.