Signs of Oil

In N. Caledonia

THE Australian public, which has had spasms of hysteria over what were regarded as hopeful portents in oil-drilling areas in Australia and Papua, received the news that traces of oil had been found in boring operations in New Caledonia with

complete calm.

The discovery of oil in New Caledonia would, of course, do nothing for the Australian investor, although as a valuable source of supply it would be an excellent thing for the whole of the South Pacific.

Our New Caledonia correspondent reports that four bores which have been put down in the Koumac district of northern New Caledonia prove that there is a subterranean reservoir of oil there —but only geophysics can prove how extensive the reservoir is. Indications of oil have come also from Gourarou, half way up the Island.

The finances of the company conducting the search (Societe de Recherche et Exploitation du Petrole, New Caledonia) are expec ted to be exhausted within a month or so. It has a capital of £A70,000, 65 per cent, of which is owned by the Bureau du Recherche du Petrole in Paris—the instrumen tality that helps finance and is in charge of all oil search in the French Empire.

Backed by the Governor of the Colony, the New Caledonian com pany has asked the Bureau for

further assistance to ascertain, at what depth the oil exists; (2) extent of the deposits; and (3) tli economic value.

The fact that no reply has b< received has irritated many rt dents of New Caledonia.

About 58 milliards of francs hi been invested in oil search in French Empire; 677 bores have bi put down and 167 have been foi productive.