THREE WELLS BLANK

Taranaki Daily News, 9 December 1926, Page 13

THREE WELLS BLANK

PROSPECTS STILL GOOD VALUABLE DATA OBTAINED. TARANAKI OIL FIELDS, LTD. It is freely admitted that this venture is the first sustained effort guided by expert scientific direction, and employing modern drilling equipment that has been made to find oil in the Dominion. The con sensus of geological opinion is that commercial oil exists in the territory in.which the company is operating. While some sense of disappointment with regard to the company’s initial drilling work is unavoidable, the more reasonable view is that as a result of systematic detailed geological work, and the efficient drilling of several of the most promising structures, the company’s efforts should ultimately achieve success. Though three wells have been abandined—two in Taranaki, West Coast, and one in Waiapu, East Coast —the above passage sums, up the conflderit spirit in which the general manager ol Taranaki Oil Fields Ltd., Mr. A. H. P. Moline, faces future operations. The passage is taken from his annual report, in which he also says:— "At the time the company was floated the prospects actually in view were those presented by the field at Mofuroa, which had produced oil in semi-commer-cial quantity in past years, together with a structure which had been discovered in the vicinity of Tarata. One test of each of these localities has since been made, with the result that at Moturoa several promising shows if oil were got, and at Tarata a bed of sand 95ft in thickness was found at a depth of 4830 ft. The well drilled for Waiapu (N.Z.) Oil Fields, Ltd., in which concern your company is largely interested, also gave negative results. In view of the vastly wider and more detailed knowledge of the geology of New Zealand which the company now possesses as the result of the last two years’ work, it is a fair statement that notwithstanding the failure to find commercial oil in the first three wells drilled, and despite the admitted difficulties which still have to be overcome, the prospects now are at least as promising, and probably more promising, than they were at the time the company was floated.” As showing how the course of events is consistent with anticipation, Mr. Moline quotes Mr. F. G. Clapp, who, in his report on the Poverty Bay district, said:—“This country is potent»aLy favourable, and success is expected; but perhaps not in the first two or three wells. Consequently, my reeoirunendation that the field be tested carries with it the proviso that at least six test wells should be drilled, for the complex conditions do not warrant procedure on the expectation of overcoming the many difficulties and learning the true worth of the field in a less number of tests.” The same remark, comments Mr. Moline, might he made with regard to any new field. NO CONDEMNATION. The spirit expressed by the genera! manager in also found in the annual report of the directors for the year ended July 31, 1926, from which is taken the following:—“lt is with natural regret that your directors report the abandonment, owing to the lack of encouraging indications, of the wells at Tarata and Moturoa, and (since the close of the financial year) of the No. 1 well drilled for subsidiary Waiapu Company. These disappointments, however, do not, in the opinion of our technical officers, carry with them ary general condemnation of the extensive areas covered by the company’s oil rights which have not yet been tested by the drill. On the contrary, it is to be borne in mind that, while drilling has been proceeding, the company’s territory in other regions has been subjected to careful, systematic and sustained investigation by the geologists, with a view to the compilation of data which will enable the numerous structures to be graded in order of their prospects. The result is that at date a great deal more is known of the various areas than when the wells, now abandoned, were commenced, and the company is thus in a better position than at any time previously to select its future well sites.

“On the advice of the geological staff, active preparations are in hand to commence drilling another well 51 Waiapu County, in the territory of rnd by agreement with Waiapu (N.Z.) Oil Fields, Ltd., concerning which ihe following summary of the geologists’ opinions has been supplied by the general manager: The existence of this anticline was indicated by Mr. Clapp during hie survey of the district, and the structural details have been worked out .since, with the result that Mr. Washbume says: *lt is a pleasure to report that recent work on area 32 indicates that it is a good structure, and that I have no further hesitation in recommending a bore on it.’ THE OBJECTIVE. “The objective of this area consists of what is known as the ‘igneous conglomerate,’ which is known to exist at the base of the tertiary rocks overlying the cretaceous rocks, and it is anticipated that 1500 ft of drilling should penetrate the conglomerate. The 'area of closure,’ that is to say, the area within which one may expect to find oil, is of the order of half a square mile, but in addition to this igneous conglomerate there are known to be porous sands in the cretaceous rocks within 3500 ft of the surface, and the structural conditions are such that in the eretacsous beds the area of closure may be as large as five square miles. If, on reaching the igneous conglomerate, it is desired to continue drilling in order to test the cretaceous sands, tha company has the choice of either continuing the well or moving the equipment about three miles to the north, this point being more eentrally situated with regard to the formation in the lower beds. The location ie about 10 miles by road from Tokomaru Bay, and, with the construc- ■ tidn of something less than .a mile of new road, transport conditions during the summer months will be satisfactory. . It is anticipated that plant can be tr nsported to this site, erected, and drilling commenced before the close ol the year. It is hoped that, unless unforeseen difficulties should present themselves, the igneous conglomerate will be reached by the drill during the first quarter of 1927. STAFF CHANGES. Air. Arthur R. Andrew. D.Sc., F.S.S.,

M.A.1.M.M., MJnst., Pet. Tech., has been appointed chief geologist Dr. Andrew is a graduate of the University of New Zealand, has for many years been in the service of the Dutch Shell Company, and has recently been engaged in Central Europe and in Borneo.

PROSPECTS ENCOURAGING

“Your directors realise that shareholders are anxious to have whatever information is available which may assist them in gauging the prospects of the company’s future work. According to the nature of the industry, no prophecy can be offered, but your directors are unanimous in believing that the wider experience and more detailed knowledge gained (concerning the company’s properties) justify a continuance of their confidence in the outlook. The technical officers of the company, experienced in oil fields abroad, declare their confidence in the future of the field, and your directors think it a most satisfactory feature that these expressions are based on the recognition, in onr territory, of geological features which (particularly in America) accompany successful production. That is to si y, the New Zealand properties do not present new and unexpected features which have to be interpreted in a theoretical way; on. the contrary, there are abundant data and experience from the exploitation of similar country overseas, to guide the field staff in. their interpretations. As the result of the past year's work the company already has evidence that several of its areas are definitely worthy of testing, and the aim o the board is to act upon these recommendations as promptly as possible. At the same time, due regard must be had to other investigations in progress and to the possibility that they will point to ’ever better locations. The objective is to apply the company’s resources in. the most effective way, and to sink each well on the location of best promise.”