TARANAKI OIL FIELDS

Otago Daily Times, Issue 23806, 12 May 1939, Page 14

TARANAKI OIL FIELDS

SHAREHOLDERS’ RIGHTS FORMATION OF NEW COMPANY EXTENSIVE BORING CAMPAIGN PLANNED (Per United Press Association) WELLINGTON, May 11. Because of a misconception among shareholders of Taranaki (New Zealand) Oil Fields. N.L., as to the rights held by them as a result of the formation of a new company, the committee of the Wellington Stock Exchange approached Sir Colin Fraser, a director of Taranaki (New Zealand) Oil Fields, N.L., chairman of directors of the New Zealand Petroleum Company. Ltd., and chairman of directors of the proposed new company, the Taranaki (New Zealand) Oil Development Company, N.L., who elucidated several points which have not been clearly understood by some. The original shareholders in Taranaki Oil Fields permanently retain their valuable right to a royalty of 5 per cent, of the value at the well mouth of all crude oil won from more than 800 square miles in the Poverty Bay district, and. through its shareholding in Moluroa Oilfields, a royalty from 600 miles in Taranaki. The royalty right also extends to one-third of 5 per cent, of the value of oil won from 60 square miles in the Kotuku district, adjacent to oil seepages. To participate in any further profit from the sales of crude oil by the boring company, i.e., the New Zealand Petroleum Company. Ltd., it would have been necessary to make further calls in the very near future against the remaining liability of 5s 5d per Taranaki Oil Fields share. This necessity has been obviated by the formation of the Taranaki Oil Development Company, to include those shareholders of the old company who are desirous of retaining their interest in the operations beyond the royalty stage. Although this interest extended to certain areas beyond those mentioned above, Sir Colin was clearly of the opinion that boring for some time to come would continue in the valuable areas over which the royalties extend. American Companies’ View As evidence of American companies' determination to make a prolonged search for oil in this country, the initial capital of £250,000 in the New Zealand Petroleum Company has been increased by a v further £330,000. It is a 20 per cent, interest in this additional capital. i,e., £66,000, that the shareholders in the Taranaki (New Zealand) Oil Development Company have the right to subscribe, as well as a similar 20 per cent, of any further increases in New Zealand Petroleum capital. Sir Colin* stated that it should be quite clear that New Zealand was in for a very extensive boring campaign in thp terirtories detailed above. He told the committee that many of his intimate oil friends in America consider that New Zealand has a very good chance of finding oil. Volcanic Countries In answer to a question whether the volcanic nature of the country here militated against the finding of oil in sufficiently large quantities, he pointed to the fact that many of the successful oil fields of the world were established in volcanic countries—Mexico. Sumatra, etc. Sir Colin drew attention to the fact that the interest of the shareholders in Moturoa Oil Fields and Taranaki Oil Fields in the further developments which are taking place were practically identical, both companies being closely linked through the interchange of shareholdings.