Abandoned

Search For Oil

P.O.D. Withdraws From Papua

From Our Own Correspondent

Ft. Moresby, Mar. 24.

IT has just been announced officially that Papua Oil Developments, Ltd., (an off-shoot of the Shell group) will forthwith cease all exploratory work in Papua, and is abandoning the four areas held on permit.

Rumours have been current for some months that such a move was imminent, but the Company’s officials would neither confirm nor deny the reports.

The staff has been gradually reduced for some time past. It is understood that a small office staff will be retained here to finalise the Company’s. affairs, but that the last of the employees will leave Papua within the next few weeks.

This leaves two big Companies (Is lands Explorations Ltd., and Australian Petroleum Co. Ltd., who are linked through their directorates) and one small Company (Papuan Apinaipai Ltd.) to carry on the search.

A year ago, P.O.D. had by far the largest staff and equipment (including aeroplanes and coastal vessels) in Pa pua.

The managing director of Papua Oil Development, Co. Ltd. stated in Melbourne on April 4 that the company had spent more than £430,000 in its search for oil in Papua since September, 1936. It had explored 31,000 square miles (one-third of- the total area of Papua) but had re luctantly concluded that prospects with in its iour permits were unfavourable, and it had been forced to withdraw its field parties and surrender the permits.

Papua Oil Development Co. Ltd. was the first to begin an active and extensive search for oil in Papua after the revis ion of the laws governing the search for oil there in 1936. The company was granted permit No. 1, covering an area of about 20,000 square miles, on Septem ber 1, 1936. As the exploration progress ed parts of this area were released and new areas were taken up, the company being granted permits Nos. 8, 9 and 10.

The exploration work proceeded by land, water, and air. In all, 31,000 square miles were dealt with. Two aeroplanes were used, one of them, a Grumman amphi bian, being among the most modern of its kind in the world. Special distribut ing bases and wireless stations were set up, and every party in the field was in constant communication with headquart ers at Port Moresby through its own portable transmitting set.

The announcement of P.O.D.’s with drawal caused Oil Search shares to slump on the Australian exchanges; but an announcement by the remaining Com panies that they would continue to search with unabated vigour brought about some recovery in mid-April.

Papuan Apinaipi Petroleum Co. Ltd. re port that their No. 3 bore is down to 733 feet. Very strong evidence of oil was found at about 430 feet, and traces of oil have been evident continuously from 375 feet onwards.

The Co.’s drillers are following out a plan of scout-boring, as recommended by the Commonwealth Oil Advisory Com mittee, and the site for No, 4 bore has been selected.