Pacific Commerce and Produc[?]

What’s Behind The Interest In Barikewa?

By the Finance Editor

After more than 20 years of searching throughout Papua, the quest for oil seems to be nearing its end.

The Minister for National Development, Senator Spooner re cently announced in Port Moresby that the companies concerned would drill only one more well — at Kuru—after the present three wells were completed.

But, he said they were interested in retaining the Barikewa area where substantial gas finds were made.

Senator Spooner did not say why the companies want to retain the Barikewa area.

But one suggestion is that the gas there might be used in con nection with the proposed bauxite refinery to handle ore from Weipa.

Of course, the possibility still remains of an oil find in one of the remaining wells to be completed.

That would transform the whole situation.

But after so many years and so many millions of pounds it must be conceded to be a long chance.

The end was foreshadowed re cently when Vacuum Oil withdrew from the partnership. British Petroleum is understood to have tried in vain to get a new partner.

It will be a bitter blow not only to the shareholders and to Papua but also to the Commonwealth’s hopes of obtaining its own source of oil supplies.

Sharemarket reaction to the news was prompt. Oil Search shares dropped to 1 9 but recovered to 2/1, which compares with the peak price of 34/6 during the 1953-54 oil boom. Papuan Apinaipi fell to 1/-, and Timor Oil to 2/10— the lowest since the shares came onto the list last year.

April drilling report of the op erating companies announces the virtual end of one of the three current wells. Komewu No. 2 reached basement at 9,950 feet, and routine testing of formations will be done before the well is closed.

Drilling crews will then be shifted from this well to Kuru No. 3 where operations will then begin.

According to Senator Spooner’s recent announcement, this is the last well planned by the companies.

At other well sites, Barikewa has been deepened 1,683 ft to 10.262 ft, and Puri 1,385 ft to 5,980 ft.

Sangara (Holdings), Ltd.: This

cocoa and rubber plantation earned profit of £19,073 for the year to Janr last, compared with £24,014 for the year. Steady dividends of 6-2/3 per • ordinary and 6 per cent, on preference require £19,216. Cocoa production ii from 4,453 lb to 12,313 lb but rubbei: was down by 1,743 lb to 473,475 II arose from "certain staff difficulties"’ cut output between February and Ju which have now been eliminated, i state. July production was a record I lb, and subsequent monthly figures havn an average increase of 3,871 lb over vious year's figures. Main causes of profit were a reduction of about 3£d pc the average price of rubber and thf cost of cleaning the No. 6 area at Mt. Lamington disaster. High yielding; trees equivalent to 70 acres have been i to replace lost trees in the 600 acres; 6 area. Further planting is proceeding. I expect an increase in production this y * * *

Steamships Trading Co., Ltd.,

slightly improved results for the half-’

January 31 last. Overall volume of was more than maintained despite prices for rubber and copra. Interim dividends are unchanged at 6\ per o ordinary and 5 per cent, on preferences payable on May 5. * * * BULOLO GOLD DREDGING showed a st in production in the three months to Nf 30 last. Production was 9,192 oz fir from 1,793,400 cubic yards dredged, cc with 17,097 oz from 2,555,000 cubic * the corresponding period of 1956. Vac down from 598,395 dollars to 321,720 i Only one dredge was operating againstl the 1956 period. For the three moc February 28, production was 3,209 oz fii compared with 13,565 oz in the same 1 of 1957. * * * TIMOR OIL, LTD., has stopped drilling i well at Aliambata and is now proceediil field work aimed at fixing a new wi\ Difficulties had developed with format!# brought back to mind the original pn reference to the company's areas as complex" in structure. Subsequently thr was played down by the company. Bee the rather limited capital of the corv sufficient for only about five wells—it i hoped that no such unexpected comr are met in subsequent drilling. * * * PAPUAN RUBBER: Steamships Tradii Ltd., acting as agents, reports the M production for February—Kerema, 331 (Jan., 33,300); Mariboi, 73,084 0 Rubberlands, 33,000 (34,000); Lolorua,, (40,485). * IRON ORE: Last year Australia's ex: steel industry found it necessary to c 146,605 tons of iron ore, most of whiii from New Caledonia. The company is ing new deposits of iron ore but appear to continue to need the New Caledos for some time yet. * * *

Dylup Plantations, Ltd., Which

near Madang, maintained copra produett: during the year, to January 31 lastz total output was 1,201 tons, directors- But the average price over the pern

’ a ton lower than in the previous With the expiration of the British •y of Food sales contract, directors do cpect current year's prices to fall by fian 10 per cent, on last year's levels, they admit that final effects of the i system are still to be seen. ) production of 135 tons for the past regarded as satisfactory. Return from creasing yield is expected to assist the y to meet any lowered returns from lors will continue what they describe f year's "considerable programme of expenditure". have appointed Mr. W. Theo Thomas tional director. Mr. Thomas is stated had very extensive experience in the of cocoa and copra. ♦ * * alian guarantee corporation, ltd., up a subsidiary, A.G.C. (Pacific), Ltd., de a hire-purchase service throughout nd New Guinea.

I. S. Kemmis is in charge of the new , which has established its head at Port Moresby. i in 1925, Australian Guarantee Cor has grown to rank as the second )f Australia's hire-purchase companies, y last year it formed an association : Bank of New South Wales, which 10 per cent, interest in the company, (suit more than 1,000 branches and of the bank act as agents for the on. ear the corporation made a net profit million and paid a 15 per cent Turnover for the year was up by ion to £66 million. Assets exceeded on, including £31.7 million owed to e purchase contracts.

officially opened a modern, ilding m Mango Avenue, Rabaul, on Its of two floors, in contemporary the third Bank of NSW building to in Rabaul. The first wa'; destroyed the second was temporary premises now be pulled down.

Sydney Stock

Exchange

April 8 Ip 67/6

Ip (Ss) .

. 45/- 45/6 antations £40| £41 • n/9 12/nber 44/ubber , . 10/3 ubber Estates 11/9 6/9 ubber . . 5/7 5/9 s. Whaling . 4/1 4/2 1 Insurance (new) 69/s ific Insurance . 56/- 5/6 56/6 Trading . . ■ 45/6 46/6 rpenter H'ld. 2/10 . . 12/- 12/4

Oil And Mining Shares

Fiji

Aug., '39 June, '57 Apr. 8, '58 • - b/9/11 blO/3 . . . S25/6 b27/- —

Papua-New

Guinea

. . bl24/b45/- . . bl/10 b2/2 bl/l| . . b3/l1 bl4/11 b2/- .G. . — s2/b6d . . b5/b6/6 m. . b4/l1 b3/6 bl Id . . . b68/6 bl01/6 b85/6 nk . bl/5 s6d b3d