OIL EXPLORATION

Poverty Bay Herald, Volume LXV, Issue 19826, 31 December 1938, Page 4

OIL EXPLORATION

POVERTY BAY FIELD THREE GROUPS WORKINGGEOLOGICAL INTEREST SHELL AND SUPERIOR OIL ' While actual drilling operations at the Totangi Dome, undertaken by New Zealand Petroleum, Limited, have been held up for the past three weeks owing to loss of verticality in the bore, interest in the oil possibilities of the Poverty Bay and East Coast field has been stimulated by evidence of activity on the part of two overseas companies which have not previously figured in the discussions of Poverty Bay territory.

These companies are the Shell Oil Company, Limited, which has formed a subsidiary known as the New Zealand Oil Exploration, Limited, and the Superior Oil Company, the latter being a fairly prominent United States organisation.

Both have undertaken prerhilinary geological work in the district, and the Shell Company's subsidiary has received from the New Zealand Government a license to operate in areas comprising 244 square miles in the Poverty Bay and East Coast district.

It is not known yet whether the Superior Company proposes to take out licenses, but geological experts representing it have visited Gisborne and the Coast, and it is assumed that the company is overlooking no chances of getting into the field in the event of the New Zealand Petroleum Company's drilling operations yielding promising results.

Keen Rivalry In Field

The position to-day is indicative of the keen rivalry among the various oil-production syndicates in the mopping-up of potential fields. Undoubtedly the new legislation which the Government placed on the statutes during the last Parliament had much to do with the awakening of interest in New Zealand's oil possibilities, but the formation of a company with American capital to drill in Poverty Bay was the turning-point in a long history of neglect by overseas interests.

It is understood that the Shell subsidiary's license includes a large area near the East Cape, and also to the northward adjoining the New Zealand Petroleum Company's license rights. Active geological work is proceeding not only in Poverty Bay and on the East Coast, but also towards the Bay of Plenty coast, the 244 square miles Of territory held by that company in Poverty Bay being only a portion of a continuous holding which extends into the Opotiki area.

Operations at Totangi No. 1 well, under the New Zealand Petroleum Company's programme, have been suspended until after the New Year holidays. The second cementing operation, undertaken last week after the initial attempt to correct the recent deflection of the drill, will be subjected to further tests for efficiency on Tuesday or Wednesday.

Resumption of Drilling

The company is in the unlucky position of having made no effective progress with its drilling programme for the past three weeks, and the outcome of the measures to correct the deflection will be awaited with a good deal of interest. When the deviation from the vertical became pronounced, just below the 2000 ft. level, the hole was filled back for over 300 feet with cement, following the usual practice towards correction. When drilling was resumed, it was found that the cement had not set solidly enough to resist the drill, and the drilling column began to follow the old hole, repeating the earlier deflection.

The cementing was repeated, and after several days a further test was made with the drill, but again the cement offered too little resistance, and it was decided accordingly to postpone further efforts until next week. In the meantime, research is proceeding to discover whether any chemical reaction is taking place in the cement mixture after it is pumped into the hole, and contributing to the lifficulty of getting a good hard set.

It is essential for the continuation of drilling on the vertical line that the cement should set harder than the surrounding sandstone rock, closing off the deflected portion of the hole.

N.Z. PETROLEUM BULLETIN

SUSPENSION UNTIL JAN. 2

The latest bulletin issued by the New Zealand Petroleum Company, Limited, states: —

"Operations in connection with correction of deviation at Totangi No. 1 well were in progress up to the Christmas holidays, when work was suspended until January 2."