Petroleum. Boring for Oil atMoturoa. Our Industries.

Progress, Volume V, Issue 6, 1 April 1910, Page 191

Petroleum. Boring for Oil atMoturoa.

Our Industries.

(By Our Travelling Representative.) It was by the courtesy of Mr. Walter Bewley, of New Plymouth, that I was conveyed on that gentleman's motor to the scene of operations, and had the unique opportunity of seeing the oily geysers which have been spouting of late so frequently from the bores. These are still being sunk to tap the principal oil stratum which it is confidently supposed will be met with at a great depth. The morning was propitious and a few moments were enough to cover the distance to the spot, where I was at once introduced to Mr. L. Keith, the manager in charge, who placed eveTy information at my disposal and showed me over the whole place. There are three bores, all of which we visited, and these I shall now refer to separately. No. 1, which had been idle for several months, was resumed in the middle of February, 1910. Sinking to a total depth of 2340 had actually been completed, but in the interval between closing and resumption of work silting up had occurred to 2166 feet. At the date of my visit some 20 feet of this had been cleaned off, but it must be some little time before the old depth is reached for the new start. At this bore the flow is now about equal to two barrels (80 gallons) a week. No one who has open eyes can fail to be impressed with the unmistakeable greasiness everywhere apparent. The derricks (56 feet high) are saturated with oily deposits, the ground reeks with petroleum, and the very air is strongly impregnated. No. 2 bore, which has been continuously worked since November, 1908, has reached a depth of 2740 feet, is still being sunk, and has passed through oil strata after reaching the 2200 feet level. A strong pressure of gas was tapped at 2620 feet, which caused a big blow out of oil water and debris. During 50 hours the display was practically continuous and some eighty 40-gallon barrels of crude oil were secured. This large flow was shut off by the lowering of the casing, as the manager advises further sinking to reach one of the main sources believed to be in the sandstone country below. This bore has been continuously flowing since the end of January last at the rate of about five gallons a day. The present flow in its crude state is utilised by means of an oil burner as fuel for the 30 h.p. steam boiler which serves the 2-10 horizontal h.p. engines operating Nos. 1 and 2 bores. A saving of fully a ton of coal a day is thus effected. At No. 2 bore are three storage tanks for the oily product. They are constructed underground and are capable of containing respectively as follows: — No. 1—31,0001 — 31,000 gallons now empty. No. 2—21,0002 — 21,000 gallons; now containing 18,294 gallons. No. 3—27,0003 — 27,000 gallons, now containing 8,000 gallons. There are also 110 barrels, containing 4,400 gallons, on hand, making a total of considerably over 30,000 gallons on hand at the time of my visit. No. 3 is known as "Samuel's old bore," and was originally put down over ten years ago. Work was commenced here by the company soon after its incorporation in 1906. A six inch casing has been lowered to a depth of 2540 feet, where the bore was shut off dry. Within is a five inch pipe which has been driven to a total depth of 2708 feet. Between 2568 and 2580 there were very strong eruptions of gas and oil, debris being often ejected 30 to 40 feet above tjo top of the derrick. Since that date gas accompanied by oil is steadily increasing as funking p; egresses. II was here that I saw a strong outburst, the floor and the interior walls of the' derrick being thoroughly , drenched with the oil, water, and debris forced out of the bore by the violent pressure. On that occasion fully 80 gallons of crude oil was baled out of the sump. An earth tank at this v spot with- a .capacity of 18,000, gallons has been considerably more than half filled, and this brings up the total quantity on hand at the

works to upwards of 40,000 gallons. No. 3 is operated by a 15 h.p. boiler and a 10 h.p. steam engine. Large quantities of gas are escaping from Nos. 2 and 3 bores, and it is estimated that a pressure of fully 6001bs. to the square inch is often reached. The latest strike of oil in No. 3 is richer in quality than any yet found, and strong hopes are entertained that a large and highly payable flow will shortly be reached. With such a result, when it comes, as the outcome of the plucky and persistent efforts of the shareholders, it is hardly possible to overestimate the value of the industry to Taranaki and the Dominion. The oil bearing country has already been traced over an area of 21 square miles, and may extend indefinitely. Although but 10 or 12 men are at present employed, the ultimate amount of labour when refineries, candle works, and other subsidiary industries are in full swing, cannot more be estimated than the value of the underground wealth which only awaits man's ingenuity and industry to bring to profitable use. The company's No. 3 bore is on freehold land, but the rest of the land held is either Government or private leasehold. Crude oil to the value of about £220, representing 12,000 gallons, were sold by the company up to Sept. 12th of last year, at four pence a gallon. The directors of the company, as I write, are Messrs. C. Carter (chairman), D. Berry (cleputy-chaiman), C. E. Bellringer, J. J. Elwin, J. Little, H. Okey, and J. B. Eoy (all of Taranaki, and J. J. Craig and S. N. Kingswell, of Auckland. And the secretary is Mr. F. U. Dobell. The balance-sheet at September last showed the contributing capital of the company to have been £31,672, of which £5822 remained uncalled or uneolleeted, £15,154 had been actually expended on boring operations, and over £4000 on tools, casing, and general plant, and there was at the company's bankers £2000 available cash. Some products of the oil wells have been tested within the Dominion, and a parcel was sent to Glasgow. One of the results of these tests, which were very satisfactory, is given below. COPY OF ANALYSES MADE BY THE DOMINION ANALYST OF OIL FEOM THE WELLS OF THE TAEANAKI PETROLEUM COY., LTD. Wellington, Dec. 3rd, 1909. Report on Specimen No. 236 2 & 3. Forwarded by H. Okey, Esq., M.P., per Honourable Minister of Mines. Particulars— From the Taranaki Petroleum Company's Property, in Taranaki. Sample Marked No. 2 from No. 2 Bore. Sample marked No. 3 from No. 3 Bore. CRUDE PETROLEUM.

While the above was being written, the cable brought news of a mysterious enquiry from London about these works. In commercial circles it is thought to be from the Admiralty, which, since the big Welsh strike, has made up its mind to substitute oil fuel for coal as the motive power of the Royal Navy. Of course, there are other possibilities. At the present 'juncture the utmost circumspection is required from all connected with the industry. To let the wells fall into the hands of the Standard Oil Trust would be unthinkable. To hand them over to the Germans would be even worse, for in the critical moment of a war with a Power favoured by" them,' they might refuse to permit the oil to be supplied to the British ships. That would be as bad, as being at the mercy of an unreasonable union bent, on- striking. All this' is' gratifying to the Taranaki Company. But it enjoins much care on their part.

Spec. Spec No. 2 Gray. No. 3 Gray Hi distilling below 150° G. (benzine, etc.) ... 17.2 .7768 12.4 .7785 lil distilling between 105° and 300° C. (burning .oil) 46.6 .8354 43.6 .8482 Residue left in still (heavy lubricating oil, paraffin, etc.) 36.2 — 44.0 — No. 3 was solid at original temperatures. (Signed) J. S. MACLATJRIN, Dominion Analyst.

When distilled, the samples gave the following results: —