TARANAKI (N.Z.) OIL WELLS, LTD.

Taranaki Herald, Volume LXI, Issue 144134, 2 July 1913, Page 7

TARANAKI (N.Z.) OIL WELLS, LTD.

(To the Editor.) Sir, —Before embarking upon any comprehensive and systematic scheme of development, the board of the above company determined last year to erect a refinery, which refinery was necessary to deal with the largo stock of .crude petroleum stored in the many earthen tanks at Moturoa. Some shareholders have criticised rattier severely the wisdom of tlic hoard's action, but others, who have studied the oil business, think the directors have acted very wisely. The 'promoters of the company, through their agents in New Zealand, when the public were asked to subscribe for shares promised that the first business to be undertaken when tho company was formed would be the erection of a refinery. This promise tho directors have kept. There are many reasons why the refinery was necessary. The company could not go on storing the crude oil without sustaining a big loss. Firstly, fresh tanks would have had to be built, and at a heavy expense; secondly, tho copipnny was taking a big risk in having many hundreds of thousands of gallons of crude oil stored, which might be destroyed by fire. There is another reason why the refinery should have been built and that is perhaps the most important. When tho oil is stored in earthen tanks evaporation goes on at an enormous rate, and this evaporation is perhaps the most valuable of the by-product (viz., benzine). With the refinery working, the crude oil will at once bo pumped to the stills direct from the wells—there to be refined. Thus the company will got the'full value from tho crude oil without loss. One and all agree that tho present welts do not produce enough oil to keep the refinery working its full capacity, but it can safely be anticipated that before long other wells will be drilled in the field, yielding more oil than tho refinery can handle. The time has now come fdr'the company to exert itself to its utmost in the direction of pushing ahead with the drilling of new wells. Every well drilled at Moturoa should drill into oil. The company has been handicapped in not having up-to-date plant to operate with. In fact, much of the plant is only fit for tho scrap-heap. Tho board should at onco send out to this field machinery - and plant of the latest design, suitable to drill through the formations met with here. Included in this plant should be a complete set of fishing tools, etc. I hope when next tho shareholders are circularised, it will bo found that the directors have attended to this most important part of the business. If so, it will not bo long before dividends are in sight, and ■ substantial ones at that. Another requirement, and the most important to make the company a success, and that is a managing director with oil experience- This man should be a person who has worked on an oilfield, and ho should have a knowledge of geology, chemistry and engineering. Now, a few lines to those that have a desire to do the industry harm. As all are aware, Uks Taranaki oil industry has been the subject of an extraordinary and totally unwarranted ampunt of “crabbing” from various quarters by persons no doubt anxious for its failure. Reading between the lines, other people want our oil lands, and they use these' little means to try to frighten capital' from coming in, so that.at a later period they can take hold. Now, I have l no doubt that many people who have visited the seaside have been struck with the curious modes of progression adopted by the crab species. They are unable to proceed straight ahead; they move slowly and sideways. I am certain tho Taranaki (N.Z.) Oil Wells, Ltd., do not intend to follow the habite of these creatures. They moan to go straight ahead, and take tho fullest possible advantage of the magnificent opportunities offered to them. In Order to do this, tho company must have ample funds at its disposal.—l am, etc., A SHAREHOLDER.