PRODUCTION OF OIL

Taranaki Daily News, 6 November 1937, Page 8

PRODUCTION OF OIL

MOTUROA COMPANY REPORT REVIEWS YEAR The annual report of Moturoa Oil Fields, Ltd., states that the saies for the year, £2671/5/2, show a reduction of £587/10/9 compared with the previous year, due to a decrease in the production of the wells, and the net profit is, Jn consequence, lower, being £535/5/6, as against £1111/1/4 for last year. Production expenses show a reduction of £223 11/3, and generW and overhead expenses (including depreciation of plant £318 10/2) are £95/13/7 higher. The net profit of £535/5/6 has been transferred to profit and loss appropriation account, making th§balance in that

account £2360/3/6, and the directors recommend payment of a dividend at the rate of £6 pqr cent. per annum on the amount paid up on the preference shares for the year ended August 31, 1936, and that the remaining balance be carried forward. The directors consider that the payment of the preference dividend for 1937 should be deferred meantime and regret it is not possible to recommend a dividend on the ordinary shares. The report of the managing director states that field work had been confined

to maintenance of drllling pjant and equipment, all of which are in good order and condition. The Nos. 1, 3 and 3 wells continue to give profitable results, the production being 142,054 Imperial gallons for the year. The total production of oil produced to date is approximately 1,100,000 Imperial gallons. Negotiations with a powerful oyerseas company have now reached an advanced stage, but they are closely linked up with the affairs Of Taranaki (N.Z.) Oil Fields, No Liability, and are also depend-

ent upon the petroleum legislation which is to be brought down during the present session of Parliament. The Minister of Mines has publicly announced that the petroleum Bill now under consideration will be on similar lines to the British Petroleum Act of 1934. This Act gave a great stimulus to oil prospecting in Great Britain by enabling corppanies to take up adequate areas on which to prospect. In view of the larger issues it has not been considered advisable to recommend further- shallow -drilling . at Moturoa

meantime, as the future policy* of the company can best be decided when the proposed legislation is actually passed. The future prospects of the company are brighter than at any stage of its. existThe need for discovering oil in British countries has never been more urgent, and, with the big advances that have been made in geological and drilling technique, New Zealand stands a good chance of having its potential oil resources thoroughly explored and developed.