Shares Crash
p. 12 · Read in the full issue
When Enterprise of N.G. is Refused Oil Permit
nPHE shares of Enterprise of Ne\v Guinea Gold and Petroleum Develop ment N.L., a Melbourne Co., “crashed” early in August, when it was announced that the Administrator of New Guinea had refused the Co.’s application for a permit to search for oil.
The Co. was formed in October, 1933, as Enterprise of New Guinea, with £20,722 in £lO shares, to develop gold leases in N.G. The shares in July, 1934, sold at £lOO. The shares were split into £1 shares in April, 1935, and fluctuated between £2 and £6. In August, 1936, the old Co. sold out to the present one; 21,122 shares of £5 were issued, shown as. paid to £2; it was announced that oil as well as gold would be sought; and early in 1937, Mr. Harold Taylour, the manager (former warden at Wau) made formal application for a permit to drill for oil, within 20,000 acres, in the area bounded by the Mandated Territory Dutch New Guinea border, the Mandated- Territory—Papuan border, and the Sepik River. .
It was confidently believed that the application would be granted,' and that oil prospects were good; and a boom commenced in the stock—in which there always has been much gambling. The shares, 85/- on July 12, rose to £10; and then fell to 20/- when,, on August 2, Sir George Pearce advised that the Admini strator had refused the application.
There was a special meeting of share holders on August 16, when the chairman (Mr. E. Ward) announced that a new application had been made, for a smaller area. A director disclosed that this had been done on Sir George Pearce’s recom mendation. The shares have recovered somewhat.
It has been explained that permits to drill in “uncontrolled” areas are rarely, if ever, granted; but stock exchanges and newspaper offices are' echoing to fierce criticism of the Administrator. A point is made of “unbusinesslike delay” in dealing with the application. It might be pointed out, however, that during June and July the Administrator had a first class, routine-breaking eruption on his hands. It is the Melbourne gamblers who are howling: and no one has much sympathy with them.