Papers - Production - Foreign - Search for Oil in Australia and Australian Territories in 1940

The most important development in connection with the search for oil in Australia during 1940 was on the legislative side. Prior to 1939 legislative enactments in the various states with regard to prospecting for petroleum were such as to prohibit large-scale effort and to bar the major oil companies from operating. The preparation of the Wade Model Bill for the Commonwealth Government in 1939 and the acceptance of the Bill in principle by all States, has gone far to remove these obstacles. Amending Acts, largely based on the Alodel Bill, have now been passed by all States with the exception of New South Wales and Tasmania. In New South Wales an Amending Bill is being drafted, while the Govern-ment of Tasmania is preparing to introduce an Amending Bill provided there is any demand for it. Noteworthy developments followed immediately on the passing of these Amending Acts. The Shell Company (1)1 and the Superior Oil Company of California (2) too$ up large areas in Queensland and com-menced work during 1940. Caltex acquired a big tract of country in the Kimberley district of Western Australia (3) and has made application for an area in the Territory of Papua. An Australian company, The Phoenix Oil Extraction Co., has obtained a permit to prospect over an extensive area bordering the south coast of Western Australia (4). Other developments are foreshadowed. The Shell Company is making an intensive examination of its area in Queensland (I). Geological, geophysical and aerial surveys are in progress. Caltex has three geological parties in the held in Western Australia while Superior Oil Company of California has done some geological work in the interior of Queensland (2). None of these concerns envisages a drilling campaign in the near future. Much exploratory work is necessary. Further work has been done by the companies that were already operating in 1939, though an important Australian company - Oil Search—has abandoned the work of prospecting in Australia. This company has subleased its holdings, at North West Cape in Western Australia (;), to Caltex on a royalty basis. The company also maintains its holdings in, and connection with, the Australasian Petroleum Company Proprietary Limited, which is a combination of Standard Oil (New Jersey), Anglo-Iranian and Oil Search. This company is operating in the territories of Papua and New Guinea. Drilling Victoria.—Although a good deal of drilling was done in the LaBes Entrance Tertiary Basin of Victoria (7), no appreciable production of oil was obtained. In order to test the extent and possibilities of the oil-bearing sand in this region, the Commonwealth and State Governments jointly put down six scout boreholes to depths of between 1200 and I500 it. The results were nega tive. A deeper exploratory horehole put down by the Governments at Seacornbe, or 26