The Taranaki Herald. (DAILY EVENING.) THURSDAY, APRIL 11, 1912. TARANAKI OIL WELLS, LTD.

Taranaki Herald, Volume LX, Issue 143763, 11 April 1912, Page 2

The Taranaki Herald. (DAILY EVENING.) THURSDAY, APRIL 11, 1912. TARANAKI OIL WELLS, LTD.

The issue of the prospectus of the Taranaki (New Zealand) Oil Wells, Ltd., marks another and a very important forward step in the development of the oil resources of this locality. Many of our readers, no doubt, are already familiar with the tends of the prospectus, which will be found in another part of this issue, but there are features of it to which we may be permitted to draw attention. The object of the company is to acquire and operate the boring rights of the Taranaki Petroleum Company, extending over an area of about 4800 acres. A portion of tbis area—that around Moturoa is proved ground, with three producing wells, which have already yielded over 500,000 gals, of crude oil and are daily adding to the quantity in store. The oil is of exceptionally high quality, as is vouched for by Messrs. Craig and Co., of Paisley, and already the yield is sufficient to warrant the erection of a refinery, by means of which the full value of the oil will be obtained. What has been accomplished at Moturoa fully warrants the confidence that additional wells drilled in that vicinity will prove producers. The other areas of land are situated a few miles away and are as yet untested, but they have been carefully selected as the result of expert advice founded upon surface indications. Only the drill can conclusively prove whether payable oil is to be obtained in these areas, though the indications are excellent. But at Moturoa actual results speak for themselves and convince the most sceptical. The property proposed to be acquired and operated upon may, therefore.

be accepted as a particularly good one, especially considering its unique position close to the port. Tie capital of the new company is £400,000 in £1 shares, 275,000 of which are now being offered to the public. After payment of the cash portion of the purchase consideration the present issue will, if fully subscribed, provide about £200,000 for working capital, payment of preliminary expenses, and the general purposes of the company, while 41,000 shares are held in reserve for issue to provide further working capital if and when required. No exception can, we think, be taken to these terms, for after the purchase money for the properties and rights acquired has been paid the balance left for the promoters is not excessive. The next matter for consideration is the directorate of the new company, and in this respect there is no room for criticism. The names of the Earl of Ranfurly, Major Dudley Alexander, Mr. Joseph Brailsford, and Mr. A. L. Horner are sufficient to set the hall-mark of good faith upon any undertaking with which they are associated, and to these are to be added, after allotment, the names of Sir George Clifford, one of the best known men in New Zealand, and Sir John Lane Harrington, who has held important posts in the diplomatic service of the Empire. Messrs. C. Carter and H. Okey, M.P., will act as an advisory board in New Zealand. We venture to say that a stronger directorate or one more entitled to the confidence of the investing public was never associated with any company placed on the New Zealand market, and their names alone warrant complete assurance that the subscribed capital will be properly applied to the objects of the company. These are: the erection of a refinery; the immediate dispatch to New Zealand of an expert drilling staff; the immediate drilling of additional wells on the proven property; the gradual development of the reserve territories; the organisation of an oil sales department; and, generally, “the conversion of what hitherto has been a purely local industry into a modern oilfield business with ample finance and a thoroughly experienced management.” The words quoted are worth special attention. Oilseeking in this vicinity has passed from the speculative stage; the field is proved within certain limits, which the prospecting to be undertaken may extend very greatly. We have here, as a matter of fact, an established industry—the production of crude oil. All that is required to enable the full profit to be extracted from it is “ample finance and thoroughly experienced management,” and these are practically assured. Mr. H. J. Brown, who came from London to complete thq negotiations commenced there by Mr. Carter, has already proved his business capabilities by enlisting the substantial support of the best known and wealthiest men in New Zealand to the undertaking, and we feel sure that under his experienced care the company will set out equipped also with the very best obtainable expert management. Under such favouring circumstances the Taranaki Oil Wells, Ltd., appears to ns a company in which the most cautious, may invest. The returns may not be immediate, but the prospects are so bright that when once the company is in full operation substantial profits are likely to be made.