Papua
p. 37 · Read in the full issue
Search For Oil In
Reports of ‘Strike’ Denied
THE eagerness with which the Aus tralian Petroleum Company’s search for oil in Papua is being followed by the Australian public was shown on two or three occasions in July and August, when reports of an oil strike stirred the stock exchanges to feverish inquiries for shares. Most shares are tightly held, however.
Both Oil Company and Government officials have made statements to the effect that, as l soon as there is amy “strike” of oil, an announcement will be made; but the public still believes that the signs are better than is admitted, and remains on tiptoe. The Co. has denied persistent reports that it is send ing pumping machinery to Papua.
The major oil companies behind the APC seem to be sparing neither money nor effort in their search; the total of their expenditure and commitments to date now totals over £4,000,000. Their attitude seems to be: “If there is oil under Papua, we shall get it.”
A discovery of oil in Papua would, over night, turn that Cinderella Territory into a country of great commercial activity and wealth. So far, apart from limited copra production, Papua has only the rubber industry and one gold mine; and rubber has been under a gloomy cloud lately. Oil would change the picture entirely.
The APC on August 26 issued the fol lowing statement about its operations in Papua: “Australasian Petroleum Company re ports that its bore at Hohoro has reached a depth of 2,323 feet and that a core taken in the last 16 feet drilled has re vealed a small oil content.
“Company officials attach no special significance to the evidence other than that it is obviously a favourable indi cation and an encouragement to drill deeper. They state, however, that the evidence should be viewed in its true perspective. Small surface oil seepages occur in many localities in Papua and it would indeed be surprising if similar oil impregnations were not encountered in the formations passed through by the drill. The existence of an oil accumu lation in commercial quantities depends upon a suitable reservoir as well as upon the presence of oil. It will be necessary to drill deeper to determine whether such a reservoir rock does, in fact, exist at Hohoro. Further drilling will be delayed, awaiting the arrival of barytes.
“It is further pointed out that a Gov ernment bore drilled at Upoia, in 1917, encountered a small oil showing between 185 feet and 200 feet, but the Austral asian Petroleum Company bore now drill ing has already penetrated to a depth of 2,662 feet without meeting a reservoir rock.
“Company officials state that in the event of oil in commercial quantities being encountered in any of its bores, a prompt announcement would be made.”
The motor-ship “Antares,” belonging to and run by Captain Savoie, of Noumea, has been lost in the New Hebrides be tween Aoba and Santo, together with its cargo. One of the crew, a Javanese, was drowned. The “Antares,” a vessel 75 feet long with a 100 HP Diesel engine, and equipped with radio, was bought in Syd ney not long ago. She made her first voyage from Noumea to the Hebrides last April.