OIL DEVELOPMENT.

Pahiatua Herald, Volume XLVII, Issue 13858, 17 May 1938, Page 6

OIL DEVELOPMENT.

SEARCH IN NEW ZEALAND HUGE SUM TO BE EXPENDED. Electric Telegraph—Press Association CHIUSTC HURCH. This Day. New Zealand will witness shortly the initiation of one of the largest and most comprehensive oil development schemes undertaken in the Southern Hemisphere for many years. Within the coming two or three months boring will be commenced on the East Coast of the North Island. The actual date of clie start of the work is depending on the time of the arrival oi the machinery now on order plus an allowance lor the erection of drills and provision of staff accommodation The search will commence on an area of 1000 square miles of country in the Gisborne-Wairoa district. The country in this locality has been subject to Tin extensive geophysical and geological survey and ? ufficient data has been gatheicd to warrant an expenditure of capital on a more expensive process of drilling. First into the field will be the New Zealand Petroleum Company Ltd., an organisation with extensive capital and resources. This company has arisen as a result of merging ol Taranaki Oilfields with the Vacuum Proprietary which has interests throughout the world. Modern machinery of the value of £‘75,000 has been ordered by this company for use in the search for oil in New Zealand and the development of the country where the oil deposits are believed to exist. One report is to the effect that the company is prepared to spend £I.OOO. 000 in its search though it believes it has a reasonable chance of discovery a payable field before reaching that figure. The Minister of Mines. Hon. P. C. Webb, said he personally was gratified that fhe work would soon be put in hand. A search for oil was timely and if the results reached the expectations of the companies a new industrial and economic era would dlown in the Dominion The Minister also said the Shell Company had been granted a license to oj crate our an area of 900 square miles a little to the south of Napier and that other licenses would be granted during the liext few weeks