PETROLEUM.

Taranaki Daily News, Volume LVI, Issue 22, 26 June 1913, Page 5

PETROLEUM.

OIL IX TRINIDAD. AN ALLEGED MONOPOLY. By Cable—Press Association—Copyright. London, June 24. | A white paper has been issued giving details of the agreement between the Crown agents of Trinidad with the Shell Royal Dutch Syndicate regarding the rental of £IO,OOO a year or a royalty of 2s per ton on crude oil and a penny per thousand feet on gas. The Government retains the right to take ten per cent-of the crude oil, conceding a proportionate reduction in rent for oil used. The Daily Chronicle complains that it is practically a monopoly, the syndicate Securing the right to prospect and select 100,000 acres of the best oil-bear-ing properties. Other: producers are virtually forced to sell oil to the syndicate. The Chronicle proposes that the Government should lay a pipe line. THE BELL BLOCK WELLS. The work of shutting off water at the two wells in drilling in the Bell Block district by the Taranaki (New Zealand) Oil Wells, Limited, was practically finished yesterday afternoon. Mr. Carter and Mr. Henry were at the wells during the afternoon, when made the final tests of the cementing work at No. 1. These were considered satisfactory, the bailing showing the hole to be dry, and in a few days, when the cement has become thoroughly set, drilling will he resumed at a depth of 2,100 feet. It is expected that the water at No 2, encountered at 1,900 feet, will ■be shut off before the end of the week. Drilling results at these two wells will now be watched with increased interest. » When seen bv a "Daily News" reporter last night, Mr. Henry said) the Bel! Rloek wells ranked amongst the hest drilling achievements in the oil fields of the Dominion. They were eertainlv perfectly straight and'flawless. "I should like to poin,t out," he said, "that the precautions taken by Mr. Keith to shut off water are of great importance. He it not taking the risks which led to the flooding of some of the pioneer wells in the old Motuma field. In the case of new territory such as we have at Bell Block, and this applies to all virgin territory in the Dominion, every 'precaution to guard against water flooding should be taken h v our exploration companies and their drillers. If the water is not cased •off, or If j„ cases of abandonment, wells are not properly plugged, we cannot expect to see the successful exploitation of the fields A single imperfectly cased well may lead to the flooding „f extensive oil-bearing territory winch in later years may b» successfully proved and exploited. No <lonl>t, as the result of water-flooding experiences elsewhere, everv possible Precaution vvill be taken to prevent the Joodinsr of now territories in the New IK month and siirroundina districts, and from now on. IM) hole should be abanplugged. It is a regrettable fact connected with other oil field development* i the Dominion, that the water was ot shut off ,n .very case, and it was is neglect n, „ ;lr ,v dnvs which was I gely responsible f or the em„i s i on of o I and water ,n some of the wells at nresent tnne. If the Moturoa field ad been more carefully developed from paid to the exclusion of water, the avero.l te,U have 1,*,, j, r , ater Ulai , u . ■it -resent Tn this connection I may ™;.,7 tha th (f Advisory Board hay ' '"<! to add to the oil-fleld equipment t'7 very hatest tools f or fi^n/2" at o„ s and the shutting off of wate?." -Mi Henrv added that the dhwto-s ow h d (]Hl]i oi]]r] s ■ li.W 0r m ,,,1e„t (l tthethreenewl TJf i , f!,r( ' ,, ' ~lso him-1 self pleased with the >iW w„ ments. - develop-