Oil Search In Papua.

Whole Territory Now Parcelled Among Four Companies.

Prom Our Own Correspondent.

Pt. Moresby, Mar. 1.

ON February 12. the Lt.-Governor (Sir Hubert Murray) issued Permit No. 7 to Oriomo Oil Ltd., under Section 22A of the Petroleum (Mining) Ordin ance 1934-1937, with exclusive rights to prospect for petroleum in and upon an area of 1.250 sq. miles in the Central Division, adjoining the eastern boundary of their Permit No. 5. An area consist ing of 11,925 sq. miles in the Central. Gulf, and Delta Divisions, was issued to the Company on September 29, 1936. The working of this came into force on No vember 1, 1936, for a period of 12 months, and later was extended to October 31. 1938.

With the issuing of Permit No. 7. with the exception of the Uncontrolled Area, and a small section to the north-west

of the Central Division, all the country in the Territory to the west of Galley Reach has now been granted under per mit to four companies prospecting for oil. These companies are: Papua Oil Development Co. Ltd., hold ing an area under permit of 20,000 sq. miles in the Western and Delta Divisions. (Permit No. 1.) Island Exploration Co. Pty. Ltd., with three separate areas, consisting in all of approximately 21,000 sq. miles, in the Western and Delta Divisions. (Permits Nos. 2, 3. and 4.) Oriomo Oil Ltd. (Permits Nos. 5 and 7.) Papuan Apinaipi Petroleum Co. Ltd., with Permit No. 6. consisting of 57 sq. miles on what is known as the Jokea- Apinaipi Dome, in the Gulf Division.

The conditions of Permit No. 7. as with other permits, include the expenditure of large sums of money for the purpose of the permit in the first and second half of the term of 12 months from the date of issue.

Description of Permit No. 7 is as fol lows: —Commences at the mouth of the St. Joseph River, the S.E. comer of Per mit No. 5 and. bounded on the south by the coast, southerly and easterly to Mo rabi. on the east by a line north to the St. Joseph River, on the north-east by a line in a north-easterly direction to Nepa, as far as the intersection of such line with the eastern boundary of Per mit No. 5. The western boundary is bounded by the eastern boundary of Per mit No. 5, which runs southerly to the point of commencement. The area is ap proximately 1,250 sq. miles, situated in the Central Division.

The combined areas xor all permits amount to 54,600 sq. miles on the main land of Papua, which consists of an area of 87,000 sq. miles. Therefore about two thirds of the Territory has been taken up by companies under permits for oil pros pecting.

Absence Of Information.

The search for oil is being carried on actively by all the Companies, both in Papua and the Mandated Territory; but there is little information about the pros pects of the search. The experts will not talk; and the rank and file, being en gaged on sectional duties, are not com petent to express an opinion on the out look generally.

The best-informed people, however, do not expect anything spectacular—such as a mighty gusher. It is more likely that the oil, if it is there, will be “brought in” quietly and modestly and that the first the general public will know will be a small, gradually increas ing export of crude oil.

It may be taken as certain that, if oil is found in payable quantities, the public will know nothing about it until Governments and Companies are ready for the announcement.

Prince George Gu, younger son of Queen Salote, of Tonga, arrived in Auckland from Nukualofa by the “Matua” on February 21.