THE OIL INDUSTRY.

Poverty Bay Herald, Volume XXXVII, Issue 12199, 15 July 1910, Page 4

THE OIL INDUSTRY.

STATE ASSISTANCE SOUGHT

(From .Our Parliamentary Reporter.) WELLINGTON, this day. An endeavor is being made to secure State assistance for tne Taranaki Oil Company, in providing a refinery in New Plymoutii. tor H. J. H. Okoy, member ioi* New Plymouth, who is also a director of the Oumpany, has on exhibition a number of samples of the Company's products', these including wax, petroleum jelly, lubricating oil, kerosene, and benzine. In justification of State assistance ho points out that the Company has expended a very large sum to prove the existence of oil, succeeding where other* had failed for forty years, its bores' are on. Government land, and a royalty of 3d per gallon will be paid to tlie' fctato after the first 1000 gallons hav<3 be"eii' refined.

In tho courso of an interview, Mr Okey pointed out that tho industry had emerged from- tho experimental .stage, l'he Company at tho present time hits, ho said, thveo bores, all producing oil/ No. 2, . which may be said to bo ' tho deepest boro in --New Zealand has been put down to over 3000 feet'.- Until about a month ago it had been flowing of its; own tied will, at the rate of b to 10 barrels a day. During this time tho Company were continuing boring. About a month ago the directors decided to pease, boring; and to draw th o casing and put down casing perforat. cd at) the difterent places whero oil strata was passed. Tho result of • this was a huge burst up, the oil going over the top of the derrick and swamping the whole country in the vicinity. Since replacing the perforated casing the tore has flowed of its own free will at an average of 120 barrels of 42 gallons •a barrel a week, and the supply appears to be on the increase, This, experts sa,y, is .the result in -most fields when the oil '.channels get clear. Number % the Birthday well ,p«t down by the late Min Fair, and the one oh whicfi the present i Company was ■• formed* has been abandoned for some time, but the director's are how putting down fresh casing. This bore continues to produce several barrels -of oil daily. The No. 3, or Mr Samuel's bore, has given the Company a considerable amount of trouble and "expense, . but the manager is Sanguine upon its being the best of; the three bores. It ia producing several barrels every day, so that it now might be said that the Company, has three producing wells, which- proves that the industry is past the experimental stage, and is also p^roof that an extensive oil field texists m Taranaki. The Company has now from 60 to 80 thousand gallons of oil in stock, mostly in large cement' tanks filled and covered over with wooden tops and earth to keep them air-tight. They had supplied, a considerable aftiounl of the crude oil ■\l\ over tho Dominion for gas-making, spraying, and other purposes. A ton qfioil was sent to Sydney a. few weeks ago to fulfil an order ; in fact the directors- have done everything possible to b'rhig it v before the public by getting into communication with tlio naval iathorities and the New Zealand Gorernment, with a view to getting rjd of their stock of- oil. More capital musj, bo , got to build refineries and to put down several bores in order to fnfij a rendition with regard to the rights the Company holds over nil area of 50C0 •icXes. -It lias at present sufficient f»fr|ds in hand 'and in view to Iceep the present works going for about nine months, and lately it has had numerous applications , from London and elsewhere to purchase the industry, but ill these have b'een in the direction of wanting tho right to sell for four or five months. The directors, although willintf to sell, will not allow it tp go out of their hands without a substantial deposit being paid down. As none of these negotiations has come to anything, I the directors have issued a circular to, the shareholders, pointing out the position. They propose to place 32,000 unallotted shares in the Corooany tinder qffer. to the shareholders and the public is preference shaves tip to iOs upon the assets of the Company, this, monpr tto he spont on -erecting' a- refinery .nnd putting down further bores. To show the nonfidencie Itho directors hnvo in the industry^ not one of the directors has sold a single share, and there are upon the directorate some of the largest shareholders. The directors are' very disap pointed nt the action "taken by the Government towards the industry and Mr Okey says ho is sure any reasonable assistance they mieht give to the industry would be "backed, up bv the Housp, a>s there is considerable risk of tho industrv Toing into the hands of outside capital isl-R, which' would be -in unfortunate thing for tho people of tho Dominion.