17 January 2010

Moreni(Romania)oilfields in 1911

The statutory meeting of the Moreni(Roumania), Oilfields Ltd. was held at City House, 48, Cannonstreet, E. C, Mr. Richard Barnett (the chairman) presiding. The chairman said that, the prospectus anticipations were being amply justified, for that company was already a producing ”company”, and selling its oil at a satisfactory profit. The shareholders would see from the statutory report that 90,000 ordinary shares of £1 each and 50,000 deferred shares of 1s each had been allotted fully paid, being the agreed purchase consideration for the properties. Preliminary expenses were covered by the proceeds of 70,000 deferred shares of £1 had been offered for subscription in order to provide an initial working capital. Notwithstanding the dullness of the markets in mid-July, the issue was over-subscribed.The valuable properties at Moreni and Filipesti de Padure, with wells under construction , machinery, .and 1 other assets as a going concern, had been acquired without any cash payment, and on Sept 8, within two months after the issue of the prospectus, and at a time when only £2,000 of the working capital had been remitted to Roumania, oil had been struck in well No.4, at a depth of 83ft. The production steadily increased from thirty tons to 100 tons a day. The oil was rich in benzine, and had a specific gravity of only 8.15. It commanded a ready sale, and within a fortnight of commencing operations 600 tons had been sold at a satisfactory figure and delivertd to the purchasers. On Oct 16 there was strong eruptions, the output of oil reaching 200 tons. On the 17th inst, when the wall was flowing at the rate of 1,000 .tons a day it took fire, and the flames were not extinguished until the night of the 19th. Twentyfour hours later they broke out afresh but the fire was soon got under, and according to a letter receivsd that morning from Mr. Alfred Rutherford, one of their directors, on the spot, "No. 4 well is still flowing merrily; Moreni has never before seen anything like this well, and they all think that she is a fortune in herself.The directors believed in seeing things themselves, and had, he thought, established a record by hold ing a, full board meeting on the field of operations 1,800 miles from London, between, the date of the,prospectus and that of the statutory meet ing. The directors had come back from their latest visit more than ever impressed with the future of roumanian oil, with the value of the companies properties at Moreni and Filipesti de Padure, and with the capacity and integrity of those to whom the local administration of its affairs had been entrusted.

Retrieval of Grey River Argus 14 December 1911.

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