Annoys Shareholders
p. 26 · Read in the full issue
Papuan Oil
Speculation
Lack Of Information Annoys Shareholders
OIL Search shares have fluctuated between 21/- and 16/- over the past month, and were, on August 11, quoted at 18/6. This instability has been dictated by whether or not British buyers were operating on the market and not by any news from the current interest —the drilling of Kuru No. 2, following the sealing of gas in Kuru No. I—which has been entirely lacking.
It is estimated that at least 600,000 Oil Search shares have been bought by London interests in the last few weeks. This has led to rumours that British Petroleum, which has been responsible for a large part of the buying spree, aims to buy Oil Search out.
It is obvious that with the 5/share of Australia’s Oil Search (which owns only one-tenth of A PC) around £l, it would have to be a very rich oil strike, indeed, to return an adequate income on shares bought at the latter figure.
However, logic does not enter much into oil-share speculation.
APC in a 60-word report in mid- August, stated Kuru No. 2 has reached 1,640 ft. The drill met gas in the same formation as did Kuru No. 1, and after drilling through the gas-zone, “water-bearing formation was penetrated.”
This report came almost 5 weeks after the previous one, when No. 2 was at only 500 ft; in the interval the drill passed through the gas, around 900 feet, but APC made no report on it to Australian share holders. This has annoyed most shareholders and newspapers.
They have had to wait in doubt while London investors, in possession of information denied Australians, operated on the Australian market, causing wild fluctuation.
They are, they say, forced to make do with the meagre monthly reports handed out by APC. If anything—or nothing—happens in between the date of one hand-out and the date of the next, APC hugs the information to itself. There should be at least weekly reports.
Up-to-date information is avail able in London. Why not to Oil Search shareholders in Australia?
Another complaint is that when the brief reports are made, they are almost meaningless to the average person.
These complaints are not un reasonable. Some Oil Search share holders have come a long way with APC, but the attitude of the big company now is that, apart from their modest contribution of money, they are of no importance whatever.