Pacific Commerce and Produce

Barikewa Gives Some Hope

A USTRALASIAN Petroleum *** Co. has given a little more

hope for the Papuan oil project

with its latest drilling report just

released.

The company reports that it has found evidence of further gas show ings in the well at Barikewa. The well is now at 13,392 feet —an in crease of 346 feet in the past month.

Earlier this year substantial flows of gas were reported by the company from the Barikewa well in two zones around the 8,000-feet level.

There has been considerable speculation on whether this gas could be put to commercial use in the Territory if a field could be proved. Obviously, this latest sign of gas will inflate those hopes, and turn even more attentive eyes to the well now drilling at Kuru.

At Kuru No. 3 well, however, the drilling company has met with de lays following the deflecting of the drilling bit in soft formation at 1,846 feet. A second hole has since been started and drilled to 2,775 feet, where casing will be run at 2,745 feet.

The first well in the Kuru area will be remembered for the ex citement it caused when, early in 1956, it met an uncontrollable flow of gas at 998 feet, resulting in the well “blowing its top”. The gas flowed for 140 days.

The company finally drilled another well directionally to seal off the gas after exceptional efforts to control the flow had failed.

Kuru No. 2 well, drilled in mid -1956, met gas in the same formation and under the same pressure con ditions. But the formation was found to be underlain by water and the well was ultimately abandoned after drilling to 7,305 feet.

Puri well has been deepened 1,122 feet to 9,143 feet, the latest report adds.

CSR Increases Profit

The Colonial Sugar Refining Co.. Ltd., increased its net profit by £363,700, or IBV2 per cent., to £2,335,058 for the latest year to March 31.

This was after undisclosed tax provision, and increasing depreciation charge by £692.065 to £2,376,627. Dividend of 8 per cent, on bonus-enlarged capital re quires £1,497.600.

The new dividend rate is equal to 10.66 per cent, on the old capital basis against the actual payment of 10 per cent, for each of the two previous years.

Raw sugar output in Australia and Fij reached a record level of 471,300 tons 4 a rise of 28 per cent, over 1956.

Production in Fiji was 196,100 tons—J increase of 61,600 tons. Directors say thal prospects for Fiji for the current year as disappointing, with normal wet seas® rains lacking and growth generally bacj ward. Estimated Fiji production is 180,On tons in a total of 458.000 tons.

Sales from Australian refineries in thi past year rose by 25,000 tons to 510.0(M tons.

In other divisions of the company, sail of building materials made a new recoil distillery sales were high, and busina of CSR Chemicals improved.

Total assets rose by £11.4 million! £72.5 million. Fijian assets at £l3l million were more than double the prl vious year’s figure.

Morris Hedstrom Profit Down

Morris Hedstrom, Ltd., planters an merchants, showed a fall of about 7 pe cent, in net profit for the latest year !

March 31. Actual profit figure wa £141.609, Fijian currency—a fall ! £10,727. Ordinary dividend remains! 15 per cent, and absorbs £78,062 of th profit. All of this goes to W. R. Carpentl which acquired all Hedstrom ordinal shares earlv in 1956. Preference divider! of 6 per cent, required a further £13,155 Result was struck after cutting tax prd vision by £47,560 to £130.640. and de preciation charge by £13.671 to £63.1fl Directors report that results were affec! by bad weather conditions in many area and especially by drought.

Placer Profit Down Heavily

Placer Development, Ltd., has indica! a sharply reduced net profit of aboi 2.500.000 dollars for the year to April* last. This compares with the previci year’s result of 3.599,000 dollars. One! the main companies in the groJ Canadian Exploration, Ltd., netted a estimated 1,117.400 dollars compared wi| 1.672,300 dollars for the previous tern This company showed production of 31,49 tons of lead-zinc concentrates again 30 392 for the 1957 year, and tungs! output down from 99,354 to 96,927 unil Further testing work to cost abotl 400.000 dollars is planned for an are in Northern Quebec where there are indi cations of a substantial tonnage of hig grade zinc ore, with small amounts! copper, gold and silver.

Another company in the group. Coroa Oil, made a net profit of 1.306,424 dollar compared with 1 672.295 dollars for to previous year. Production fell from 565 * barrels to 428.287 barrels. Producing were restricted to 11 days in FebruflM nine in March, and eight in April. Tf successful and two dry wells were drill in the last quarter of the year.

New £1 million Fijian Loan

An Australian stockbroking firm. ■ Potter and Co., has underwritten a nr £1 million loan for the Government 1 Fiji. Loan is being issued at £99 9 each £lOO of stock. It offers 5 per cen for stock maturing in 1963/65, or 5% P f cent, for 1973/75 stock. Money raised! to be used for development, states ■ prospectus of the issue.

Norfolk Whaling's Acquisition v

Norfolk Island and Byron Bay Whalm Co., Ltd., has contracted to pay £42,Wl

ew Zealand currency in acquiring the ier Whaling Co., Ltd., New Zealand, his amount £l,OOO has been paid and rest is due by October 31, 1960. ier Whaling Co. is the owner of assets iously the property of Hauraki Whal :o.. Ltd., and last shown in the books rat company at £NZ146,620. Barrier ling will not engage in whaling this m as its vessels are doing a survey reas not previously worked by the er owners. To date the Byron Bay )n has taken more than 50 whales season, despite bad weather.

rua Rubber Pays 15 per cent

orua Rubber Estates, Ltd., has de -3 a final dividend of TVs per cent, ng a total of 15 per cent, for the any’s latest year. The dividend is )le on July 29. Although it is a re an from the previous year’s 20 per rate, the new rate was generally received in view of the fall that has red in the price of rubber. Produc from the Papuan estates under the iy of Steamships Trading Co.. Ltd., mainly higher in May. Kerema id 35.000 lb (April, 28,062); Mariboi. (77,688) lb; Rubberlands 36.400 0) lb: and Lolorua 42,029 (38.355) lb.

Goldfields output up

i Guinea Goldfields, Ltd., in its ily operating statement for June, re an increase in production. Golden s mill treated 4,086 (May, 4,228) of ore for 938 (822) oz fine gold, )28 (915) oz silver. Golden Ridges als produced 117 oz fine gold (pre month, no figures). Koranga Allu output was 206 oz fine gold from cubic yards (May figures showed nent of 86.156 yards but no clean Tributors output rose from 87 to z fine gold. Production of timber 169.310 super feet against 166.168 feet in May.

r Prospects "Enhanced"

or Oil, Ltd., field geological work, id by core drilling, was developing a al picture which could be very im it to the company, states the chair- Mr. K. A. Cameron. It would be months before a significant stage iached but indications were that the ial value of the prospect had been erably enhanced by the work done •, he said. Geological parties were ig in the Suai, Same and Viqueque A second diamond drill would work soon in the Suai area, he

le Stock Market

aonth of rising share prices cul ;d in a new record level for the n July 9. On that date the Sydney Exchange index of ordinary shares at a level of 258.15—a rise of almost nts in a month, and 21 points, or 10 per cent., since the beginning year. In the previous month the had risen almost four points after lier decline. ral feeling is that the market h lies almost solely in the fact his is an Australian election year, bat the impending Federal Budget ntaln some of the sops traditionally ,ted with an election, ctual fact, there have already been i variety of forecasts of tax reduc and pension increases. All these.

Durse. are completely without itative basis but have their in on the course of the share market, factors helping to offset the gloomy : for commodity prices, as far as arket is concerned, Include record aotor registrations, exceeding 8,000 les, for May, and a further increase*

in hire-purchase business during the same month when new HP contracts exceeded £22 million.

Demands by hire-purchase companies for public loan funds eased during the month to a total of about £2 million.

Custom Credit Corporation announced a profit of almost £1 million for the year to June 30 with the total amount due to it under contracts now exceeding £42 million. Not to be outdone Australian Guarantee Corporation stated the next day that its outstandings had risen by 31 per cent, in a year to £47 million.

Largest of the group, lAC, announced in April that more than £5O million was owing to it then.

A market sensation was caused by the debut of Commercial and General Accept ance, the new HP company sponsored by the Commercial Banking Co. of Sydney.

The 2/6 paid shares opened on the market at almost 7/-, and big money was made by shareholders who had got in on the ground floor.

Indications were at edition time that the market was nearing its top overall, at least for the time being, its immediate future will probably be decided by the

contents of the Treasurer’s Budget message.

Sydney Sale Prices

June 9 July 9

B.H P

45/6 46/9 Burns Phllp ... 54/-* 55/9 Burns Philp (SS» . . 45/6 47/-

C.S.R

£40 £43/17/6 Dylup Plantations . 12/6 14/9 Hackshalls 42/- 42/- Kauri Timbers . . . 19/6 20/3 Kerema Rubber . . 10/- 10/- Koltakl 10/6 11/3 Lolorua 6/3 7/- Mariboi 5/- 5/6 Norfolk Is. Whaling 5/3 4/6 Queensland Insurance 72/- 69/9 Rubberlands ... 5/- 5/6 Sthn. Pac. Insurance 55/- 56/- Steamships Trading . 44/6 44/9 W. R. Carpenter Hold. 11/3 14/9 Timor Oil 2/6 3/- • Shares ex bonus issue.

Oil And Mining Shares

Fiji

Aug.. ’39 June 9. ’58 July 9, '58 Emperor . . b9/ll b5/l b5/9 Loloma . . . s25/6 — —

Papua-New

Guinea

Bulolo . . . b!24/b32/b35/- N.O.g. Ltd. bl/10 bl/10 bl/9»/ 2 Oil Search Ent. of N.G.

Papuan Apin b3/ll b4/ll b2/3 bed hSVsd b2/6 b7d b9d do. opt. . *lacer Dev.

Sandy Creek b68/6 bl/5 b3«/ 2 d b91/6 b3d b6 J / 2 d b86/6 b4d