MOTUROA OIL FIELDS

Otago Daily Times, Issue 26328, 6 December 1946, Page 9

MOTUROA OIL FIELDS

REDUCED PROFIT SHOW (P.A.) WELLINGTON, Dec. 5. The net profit of Moturoa Oilfields, Ltd., for the year ended August 31 was £460, a reduction of £485 on the previous year. The directors’ report said that the decrease in the net profit was caused mainly by the increase in management expenses arising from negotiations with the Government and other parties regarding the development of the Moturoa area. The directors said they considered it necessary to conserve the company’s financial resources to meet eventualities and did not recommend the payment of any dividend for the present. The net profit had been carried to the appropriation account, increasing the balance in that account to £2687. Shareholders had been advised in August that negotiations with the Government about assistance for further dwelling development had proved unsuccessful. Negotiations had been continued in other directions, but so far there was nothing tangible to report. Oil sales, at £2916, were slightly less than the total of £3171 for the prev ous year. That was due to the total production from the wells being 53 barrels less than to the adjustment in the price. Trie gross profit showed a reduction of £lO2 The managing director, Mr C. N. Taylor, in his report, said the quantity of crude oil raised was hardly sufficient to keep the oil refinery's plant in profitable operation or to pay production and maintenance expenses. “It is'hoped,” he said, that negotiations now in progress will be successful, as the company’s financial resources are not sufficient for carrying on further exploration and dwelling operations."