MOTUROA OIL FIELDS

Taranaki Daily News, 24 December 1935, Page 5

MOTUROA OIL FIELDS

POSSIBILITY OF DIVIDEND. OPTIMISM OF DIRECTORS. The annual general meeting of shareholders in the Moturoa Oil Fields Ltd. was held at Wellington on Friday. Mr. J. W. G. Brodie, chairman of directors, presided. The following report of the proceedings was supplied:— . In moving the adoption of the directors’ report, balance-sheet and accounts, the chairman said:— “The printed reports and acounts furnish you with an idea of the company s present position. I would like to add,' however, some little further information regarding the production of the wells drilled by the company. As you are aware, the company has drilled four wells, and of these three have produced oil. The No. 2 well has now been producing since August, 1931, and up to date has produced a total of over 700,000 gallons of crude oil. The No. 1 well, which was the well first drilled by the company, was not brought into production juntil the beginning of this year, as by itself its working would not have been profitable. It has, however, produced a moderate quantity of some 17,000 Imperial gallons at very little cost. The No. 4 well has produced approximately 90,000 Imperial gallons since it came into operation, April, 1934. The total production of the three wells is, therefore, in the vicinity of 807,000 Imperial gallons, and this must be regarded as satisfactory, considering the nature of the field. “You will no doubt be very interested to know the .'view of the directors regarding the future of the company. The situation as it now stands is that the company has insufficient funds to warrant the drilling of further wells. At the same time the present wells are producing a revenue which is adequate to [cover the cost of maintenance, and in tthe absence of any unexpected expense “will provide some return to shareholders. In the patural course of events, however, the production of the existent three wells will gradually diminish. Therefore, your directors are exploiting levery possible means to either secure further capital to resume drilling operations, or, alternatively, 'to interest big 'companies in this field. In Mr. Taylors report reference is made to certain discussions he has had with the large oil ’interests. At the moment it would not be expedient to say more. Your directors, [however, can say that there is no reason for the shareholders to feel that Moturoa Oil Fields has reached the limit of its ’tether. They are reasonably optimistic that within the next few months it may Ibe possible to submit a proposition .to the shareholders for their consideration ensuring further revenue to the company, or alternatively, ways and means of exploiting the field. “The directors would remind the shareholders that the Moturoa Oil Fields is the only company that has conclusively proved the presence of oil in Taraiiaki by drilling four wells, three of Which are producing oil. In recommending the payment of the preference dividends for the year ended August 31, 1933 and 1934, the directors have taken the viewpoint that as no further drilling can be undertaken, the company’s nett ‘revenue, arising out of the production of the wells, should be applied to dividend purposes, and I have no doubt (that shareholders will approve this point of view. The actual declaration of the dividend would, however, be subject to ‘approval of the company’s legal adviser, Whom it had been necessary to consult ‘about a technical legal point.” The retiring directors, Messrs. Charles E. Richardson and H. B. Williams, were re-elected, and Messrs. McCulloch, Butler and Spence were reappointed auditors. Mr. Charles N. Taylor, managing director, gave a brief survey of the operations during the year, and explained the nature of the geophysical surveys made. He stated that while in Great Britain and the United States of America he had met prominent geologists, and others connected with the oil industry, and he had every hope that as a result of his Visit it would be possible .to formulate a scheme for further exploitation of the Moturoa Company’s field. . A vote of thanks was accorded to (Mr. Taylor for the information given, land for his work on behalf of the company during his visit abroad. Mr. C. H. Weston, K.C., explained the (reason Why the directors wished to consult the company’s legal adviser before paying the dividend, and the resolution declaring the dividend was passed, subject to the approval of the company’s [legal adviser.