OIL IN POVERTY BAY.

Poverty Bay Herald, Volume LII, Issue 16946, 30 January 1926, Page 7

OIL IN POVERTY BAY.

WELLS TO BE SUNK. A BIG UNDERTAKING. DRILLING PLANT ARRIVING. Within the next month drilling for oil will have been commenced in Poverty Bay, on a scale never previously attempted in the history of oil exploration in this district. All oil ventures are regarded as gambles, but owing to the comprehensive naturw of the work which has been done prior to the actual commencement of drilling, and also to the experts avlio have been engaged, the present venture Avill be commenced with far less risks of failure than lias been the case with any other company. In an interesting interview, Mr. A. 11. P. Moline, general manager of Taranaki Old Fields, " Ltd., detailed the work which had been accomplished already, and indicated the lines upon which the work in Poverty Bay would be carried out. Following on a comprehensive geological survey of all the oil-bearing areas in the district it had been decided to commence boring operations. Some time ago a drilling plant had been ordered from America, and this was now in Auckland. Arrangements were being made to ship this to Gisborne am) as soon as it arrived, drilling would be commenced on locations to be decided upon. GISBORNE OIL COMPANY.

Dealing Avith the formation of the Gisborne Oil Proprietary, Mr. Moline said that interest in the search for commercial oil in the Dominion, which had been dormant for some years, was revived about the middle of 1924, Avhen Taranaki Oil Fields, Ltd., Avas floated. Tho) capital for this company Avas subscribed in Australia and Ncav Zealand. While the greater part of this money was found in Australia, it was interesting to note .that at the present true- the number of shareholders resident in New Zealand Avas approximately the same as the number in Australia. Some months ago Taranaki Oil Fields acquired the whole of the interests of the Gisborne Oil Proprietary, Lid., a company which had been formed to- investigate the oil possibilities on- flm East. (least, and in order to provide funds for this work tho parent company recently issued additional capital amounting to rather more than £150,000. HISTORY OF PRESENT VENTURE.

The present exploration for oil may be said to have commenced during 1924, when the Australian company Avhich had been formed to exploit the Taranaki oil deposits, decided to secure a complete geological report of tint PovertyBay district. Dr. Clapp, ono of the foremost geologists of America, was sent to Poverty Bay, and during a stay of some months compiled an extensive report on the oil possibilities of the district. Although the report is not available), it is known that it Avas favorable. FolloAving on the visit of Dr. Clapp, the company decided to carry out a comprehensive geological survey of Poverty Bay, and a number of American geologists were sent out to commence the detailed survey Avork. The first to arrive bn the scene were Messrs Whitney, Hunt and Miller, and for soma months they carried out the hulk of the survey Avork at various places in the district. Mr. Penny, another American geologist, folloAved later, and since that time the staff has been still further augmented NEW ZEALANDERS APPOINTED. The company was quick to recognise Diet merits oi' Ncav Zealand trained mining students, and once the work was Avell under way Messrs McPherson, Fyfe and Strong, all graduates of the

Otago School of Mines, were appointed to assist in tho detailed survey.

A short time ago Mr. Chester Wash burn, one of America’s foremost geologists, Avas appointed to take charge of the geological side of the task, and after carefully considering the results of the Avork which had been done, lie decided upon the location of the first Avell. PROGRESS OF COMPANY.

The company, which obtained experts on the geological side, also determined to appoint a recognised expert for its leasing work, and in April, 1925, Mr. Charles N. Taylor, who had been connected with oil enterprises in various parts of tho world, was appointed to take charge of the leasing operations. Experience in tlie East and in both North and South America had given him exceptional qualifications for the work, which lias made rapid progress since his appointment. Although tho Gisborne Oil Proprietary has been absorbed by the Taranaki Oilfields, the existence of the former company has been preserved as a separate entity. Air. Charles Taylor will now retain control of the Gisborne Oil Proprietary and in addition the scope of his activities has been enlarged by his appointment as assistant general manager of Taranaki Oilfields. The actual drilling work which is to be commenced, will bo carried out by the Taranaki Oilfields, this company possessing supplies of modern drilling equipment, and in the forthcoming drilling campaign, the parent company will be represented on this side by Air. Taylor. THE FIRST BORE. The work has progressed rapidly during tiro past few and at last the first bore has been decided upon. This will be regarded as being somewhat in the nature of a test weli, and the company should learn much from the difficulties which may bo encountered during the progress of drilling operations. It is possible that a second well may be commenced at the same time, but, the company which has all along been conservative and has taken few of the risks which are usually associated with oil enterprise, is not likely to commence a second well unless the geological formation is particularly favorable. PREVIOUS FAILURES. Tho history of oil exploration in Poverty Bay is one that has been dotted' with failures, but there _ are many who have all along believed that eventually success would lie attained and oil discovered in the district in payable quantities. The early companies failed for a number of reasons, the failures in many instances being due to lack of capital, lint more often to the application of wrong methods. It can safely lie said 'that never before in the history of the district has any such attempt Iteen made as the present one, where tiie best brains have been obtained, nml where no money lias been spared to make a success of the venture. The Arnolds knew of the oil and gas indications of the East Coast from the East Cape to the Mahia Peninsula. but it was 1573 before Europeans were attracted to tiie spots and attempts made lo obtain oil. Tho first company made its attempt at Wnitnngi Hill, but eventually failed through lack of capital. Since that time n number of companies have been' formed, but through one reason and another these also have failed and it has been left for the present company, operating 52 years after the first attempt was made, to thoroughly exploit tho resources of Poverty Bay.