OIL COMPANY'S SEARCH

New Zealand Herald, Volume LXXI, Issue 21793, 7 May 1934, Page 5

OIL COMPANY'S SEARCH

.THE TARANAKI OPTIONS • EXTENSION OF AGREEMENT As the geologists of the Vacuum Oil .Company will not. be in a position to submit a final recommendation by August 31, the directors of Taranaki (N.Z.) Oilfields, N.L.," Melbourne, have granted an extension by four months of the terms within which the Vacuum Company is to notify its intention to drill on the properties of the Taranaki group on the east side of the North Island of New Zealand. The dates by which drilling is to be commenced" (in the event of a favourable decision), and to which the "option fee" and reimbursement rentals are borne by the Vacuum Company, arc taken further forward similarly. The Vacuum Company is now to announce its decision on the question of drilling by December 31, 1934. The following statement of the position has been made: —"In August, 1932, an agreement was entered into by Taranaki (N.Z.) Oilfields, N.L., and its subsidiaries with the Vacuum Oil Company whereby the Vacuum Company undertook to carry out a geological examination of the properties of the Taranaki group on the east side of the North Island of New Zealand. The agreement requires the Vacuum Company to 'give notice before the end of August, 3934, of its intention to drill or not in the territory which it is examining. It is only by carrying out drilling operations that the Vacuum Company will become entitled to acquire a proportion of the Taranaki group's geological structures. If it notifies its intention to drill, it is hound to commence drilling by the end of 1934, unless it pays a substantial cash sum for the right to defer commencement of drilling until the end of 1935. After commeijcement of drilling the Vacuum Company may retain its rights only by continuing to drill or by maintaining payable production. The Vacuum Company has entrusted its investigations in New Zealand to geologists of high standing, who have made good progress in their study of potent/al oil country over an area several thousands of square miles in extent. It is felt to be necessary, however, that these officers should at the present stage return to America and possibly visit other countries to consult their technical colleagues on various aspects of the geological survey, and it has become evident that thej r will not be in a position to submit a final recommendation to their principals by August 31, 1934."

COURTAULDS, LIMITED

INCREASE IN PRODUCTION A considerable improvement in the demand in England for ravon yarns, with a consequent running of factories at maximum output, is reported by Courtaulds, Limited, in reviewing its activities for 1933. Sales increased in volume by 15 per cent over those of 1932. Further important economies have been effected in production costs, resulting in an all-round reduction in prices. Extensions were being put in hand that would increase output by over 30 per cent. This increase would be felt immediately, and would be completed within 12 montlia In the textile branch the production was about 75 per cent of full capacity, against 55 per cent in the previous year, but on this side prices were still unremunerative. After violent fluctuations in the demand for rayon in the United States of America at the beginning of the year, since last April consumption has kept up with production. The demand m Canada has improved and Courtaulds (Canada), Limited, w;as adding 40 per cent to its production. In Europe there has been a slight improvement in the demand.