GISBORNE OIL COMPANY, LTD.

Gisborne Times, Volume XXV, Issue 2190, 20 September 1907, Page 2

GISBORNE OIL COMPANY, LTD.

ANNUAL GENERAL MEETING

GOVERNMENT GEOLOGIST ASICED TO SURVEY.

The Annual General Meeting of the Gisborno Oil Company Ltd. was hold yesterday aftornoon at tho I'armors Union Club rooms. Mr. W. D. Lysnar, Chairman of Diroctors, prosided. There was only a small attendance, but proxies brought tho number of shares represented up to 621. DIRECTORS’ REPORT. Tho Directors’ report stated- “ Thu total number of shares allotted to date is 3246 preference shares, allotted to 235 shareholders. No shares have been allotted as fully or partly paid up or otherwise than in cash. The total expenses of the Company to date amount to £ll3 9s 7d. The sum of £IO2O 2s. has been placed on fixed deposit at the Bank of New Zealand, Gisborno. Tho Directors of the Company tiro:—Lysnar, AVilliam Douglas, Gisborno, solicitor; Clark, John, Te Arai, sheepfarm- i er ; Hall, Frederick, Gisborne, plumber ; Barry, David John, Gisborne, brower j Oman, George Brown, Gisborne, publican; Anderson, YVilliam Francis John, Gisborno. merchant; Adair, Thomas John, Gisborno, draper. The secretary to the Company is Thomas John Adair. An election of two directors will take placo on account of Messrs. Lysnar and Anderson retiring according to our Articles of Association. These two gentlemen offer themselves for reelection. ADDRESS BY CHAIRMAN.

The Chairman in moving tho adoption of tho balance sheet stated:— In submitting to tho shareholders the first annual report and balancesheet of the Company, I liavo to state that 3,246 PREFERENCE SHARES

have been allotted to 235 shareholders ; the total cash received is held in the Bank, less £ll3 9s 7d, which has so far been expended in the expenses of the Company to date; the bulk of tho cash is lodged on fixed deposit at the Company’s Bank. Tlio Company has secured ' BORING RIGHTS

over some 27,000 acres which are supposed to contain the most promising indications of petroleum in this district, and include tho sites of 3 of the original wells that were put down many years ago when actual boring, operations were undertaken in tins district.

I might mention that tho principal object in forming this Company was

HAVE A BONA FIDE TEST made by the residents of this district, to ascertain whether pave bit petroleum is to be obtained here or not, and for tho purpose of floating a Company in order to make money out of tho trafficking of shares. Consequently, immedia'my after the formation of tho Com • \ny an application was made to the Government, to allow Dr. 801 l I tho Government Geologist) to visit and iusj-ect tho district, with tho v'ew ~f niv'.sing us on the most suitible locality to undertake boring operations. DR BELL’S VISIT. With the permission of the Government, Dr. Bell visited -lie district. I accompanied hint in a general examination of tho several locaii its, which were supposed to show favorable signs of petroleum, and after this general inspection Dr. Bell met your directors. Ho explained to them that, before boring oper.it'>,,is wre commenced, a geological SURVEY SHOULD HE MADE

of the locality, in order to define the anticlines of the country, and that he could not do this survey, without further authority from the Government, as it would entail several weeks work for himself and a party of assistants. Your directors realising the aßsolute necessity of such a survey, at once approached the Hon. Mr. McGowan (the Minister in charge of tlie Geological Department) hut that gentleman has not yet seen his way to authorise the survey to be made. Sc far as your directors have been able to learn, there is not another person in the Colony, besides Dr. Bell, who possesses the experience and qualifications necessary to do this work. In tho event of his services not being ultimately obtained, steps have been taken to pro-cure-those of a geological SURVEYOR FROM CANADA.

and your directors are now expecting word as to whether such an export can be secured, and at what cost. To bring such a highly trained expert to tho Colony, will naturally entail heavy expense, but, without a proper survey being first made, your directors aro of opinion that it would ho unwiso to commence actual boring operations. Wo aro still hopeful that tho Government will allow Dr. Bell to do this survey work and locate tho anticlines for us, and so avoid tlio lioavy expense of bringing ail expert from Canada to do a few weeks’ work. With this object in view your directors liavo forwarded an application direct to the Hon. tho Premier on tho matter. All enquiries and information (including contract prices for sinking wells) necessary to start actual boring operations have been obtained, but, until the necesasry survey work is arranged for, nothing further in this matter can ho done. FUNDS BEING CONSERVED.

In tho meantime, the funds of tho Company are being conserved, and the shareholders can rest assured that ovory effort will be mado to liavo the survey work completed, and boring operations started during the ensuing summer months. So soon as your directors are able to arrange for a geological survey, it will be neceessary to call the shareholders together, and explain the

PLANS OF FUTURE OPERATIONS. Efforts should then bo made to have more shares taken up, in order to strengthen the finances of the Company, and enable the actual boring operations, when commenced, to be carried on with all possible speed. However, until the gelogical survey is put upon a more satisfactory basis, your directors do not consider it advisable to ask the shareholders and the public to take up more shares.”

DISCUSSION. The Chairman went on to say that the directors were daily expecting word by cable as to the cost of getting an export from Canada. It was a simple matter to commence operations, but until the survey was made it would be courting defeat to proceed. Mr. Lucas: I presume tlio survey will be an expensive matter. The Chairman: Yes, but it is absolutely necesasry. There have been thousands of pounds lost in boring before there was expert data to go on ; it is simply a waste of money. Mr. Jas. Brown said that if the Company offered to recoup tile Government the expenses of a visit by Dr. Bell and staff it might pave tho way to the request being granted. It would bo very much cheaper to do this than to obtain tlio services of a Canadian expert. The Chairman said tho directors had verbally informed tho Minister that the company would be willing to pay Dr. Bell’s expenses, but the offer bail never been mado formally ill writing. It might be advisable to make a formal request. Mr. Brown : I think it would strengthen the position. On tho motion of the Chairman, seconded by Mr. F. Harris, the bal-ance-sheet was adopted. On the motion of Mr. Lucas, tho retiring directors, Messrs W. D. Lysnar and Anderson, were re-elected, unanimously.

Tlie directors recommended the appointment of two auditors, whoso sor--1 vices would be necessary once active , work was commenced. : On the motion of Mr. H. DeCosta, , Messrs Thos. A: Coleman and H. M. Porter were appointed, tho remuneration being left to tho directors. | Mr Brown moved: “That this meot--1 ing would respectfully urgo tho Government to allow their Geological Surveyor to survoy tlio anticlines in a part of this district for tho company, j tho company paying all expenses, so as to avoid the heavy cost of bringing an expert from Canada, which will be necessary if t-lio services of the Covorninont Geologist cannot bo obtained.” Following up his previous remarks, ho though this might lead to saving a lot of timo and money. Ho was anxious to sco tho company make soino forward move, otherwise matters might be hung up indefinitely. The Chairman, in seconding, jiointod out that tho company was not asking the Government Geologist to locate bores; that could be dono on other professional advico once tho high-grade geological work was completed. Dr. 801 l was a very able man, equal to any expert who could ho imported, and his services would he most valuable. It seemed hard that tlio company should have to send . to Canada. Surveys were being made in other parts of tho colony for mining purposes, and why should tho oil industry not rcceivo similar encouragement. The resolution was carried unanimously. Mr. DeCosta asked when the next meeting would bo hold. , a *e Tho Chairman said tlie directors lid not feel disposed to make any move or invito further share subscription until a survey was made. If a survey could not be obtained, the feeling of tho directors was that t'lio company should proceed no further, but return the money to the shareholders rather than waste it in working in ! the dark. Mr. Lucas: That is if the Government won’t make the survey. Tho Chairman: If tho Government won’t sanction tho survey by Dr. Bell and if we can’t get a suitable expert from Canada. On the other hand, if we get a survey made, we are assured that there will he no trouble in locating the most suitable places for bores. There are men in tho colony who can supervise that. It is proposed then to put down two trial bores, with day and night shifts. Mr. Brown hinted that “pressure” should be brought to bear on the Govorniiiont.

Mr. Oman: YVe havo tried, without success. Mr. Lysnar went to Wellington and had a personal interview with Ministers.

Tho Chairman referred to the fact that there were four or five Government geological parties working in different parts of tlio colony. Some little time ago Westland had the services of two. if not three, and Nelson had -one party. Surely if those places could get' the assistance of the Geological Department in mining matters, Poverty Bay was entitled to some recognition also. This company was started to give the industry a bona-fide trial, not for tho purpose of trafficking in shares. It would he harsh treatment if their request to have the services of Dr. Bell for two or three weeks were refused.

The Secretary :• It is not for tho want of trying. The Chairman: No, the directors have done all they could in the past. We have asked the Premier to put tho matter before tlio Cabinet. It is now under consideration, and perhaps we should not jump to unmerited conclusions. It would be strange to refuse aid to this new oil industry, not yet on its feet, while all other branches of mining, etc., aro encouraged. “We know tho reason for the Government’s past attitude.” concluded tlio Chairman. “Something happened in Taranaki that wo are not responsible for. YVe should not be punished for tho errors committed by other districts.” (Hear, hear.)

A vote of thanks to the Chairman concluded tho meeting.