Search For Oil

Goes On In Papua

Official Summary of the Position

ONE of the most interesting questions concerning Papua-New Guinea is concerned with the future of the oil search there.

The search has been proceeding for nearly 20 years, except for the interrup tion of the Japanese invasion. In more recent times, operations have been con centrated in the hands of the great Anglo- American oil companies, and especially Anglo-Iranian Oil Company (now facing grave dislocation in Persia) and Standard Vacuum Oil Co.; and 'these interests, amalgamated as Australasian Petroleum Co. Pty., Ltd., have spent already at least £6.000,000 on the search in Papua. So far, they have not found payable oil.

How long are these powerful companies prepared to continue the search? If they go on, and succeed, Papua-New Guinea will have a prosperous future, quite irres pective of Australian Government sub sidies.

If, on the other hand, the oil companies tire of the unsuccessful search, and puli out of Papua, the present economic set up in Papua-New Guinea can continue only if (a) important new industries are established or (b) Australia is prepared indefinitely to spend five or six million pounds per annum on the Territories.

Recently, the General Manager and Chief Geologist of Australasian Petroleum Co. (Mr, L. A. Pym and Mr. N. A. Osborne) went to London for a conference with representatives of the big oil companies After their return, the APC, in a special statement on June 29, said the London discussion centred on “the pro gress of the Papuan exploration pro gramme,” and continued:— The results of the wells drilled to date were discussed at length.

The Wana well was drilled to a final depth of 9,866 feet. Its objective had been to provide stratigraphic information, and it has proved a thick limestone with good reservoir characteristics. This limestone produced salt water at the rate of 18,000 barrels per day, together with a small amount of gas.

The seismic surveys have been ener getically carried out in the vicinity of Wana; but, as yet, a site for a definite test has not been found; the work continues.

The personnel on this work was increased from one seismic party to two, last Octo ber, and it has been decided to increase it still further with the provision of a third party as soon as arrangements for it can be made. This will allow opera tions to extend over a greater area.

The two wells now drilling, Hohoro No. 2 and Omati No. 1, have not yet reached conclusive depths; and drilling continues.