Prospectus of the Bathgate Oil Co. Ltd.

type: Companies - prospectus

Unique Code:
A01086
Source date:
01/01/1880
Related organisations:

The Bathgate Oil Company Limited.

To be incorporated under “The Companies Acts 1862 to 1880,” whereby the Liability of Shareholders is limited to the amount of their shares.

Capital £50,000, in 5000 shares of £10 each.

Subscriptions are invited for 3500 shares of this company, the number proposed to be at present issued. Deposit £1 payable on application, £2 on Allotment, and the balance as required, by calls not exceeding £2 per share, at intervals of not less than two months.

Directors

  • Alexander Wood, Esq., M. D., F.R.O.P., F.R.S.E., Strathearn Place, Edinburgh,
  • James Pender, Esq., Rushmere, Leighton Buzzard, Bedfordshire,
  • James H. Warden, Esq. (of Messrs W. Warden & Co.), Oil Merchant, Leith,
  • W. Hamilton Beattie, Esq., Architect, 63 George Street, Edinburgh,
  • E. Borne Craigie, Esq., Metal Merchant, Edinburgh.

Secretaries – Cotton & Valentine, C. A., Edinburgh.

Auditors – F. J. Moncreiff & Horseburgh, C. A., Edinburgh.

Bankers – The Union Bank of Scotland, Limited.

Temporary Offices of the Company – 9 North St. David Street, Edinburgh.

Prospectus

This Company is being formed for the purpose of purchasing the valuable Mineral Estate of Redhouse, and Leases of Shale and Coal in the lands of Blackburn and Seafield, near Bathgate, with the Mines and Pits, Mining Plant, Machinery, Buildings, and the Railways and Sidings thereon, and to develop the Shale-fields and to carry on the business of the Manufacture of Mineral Oils and the products thereof.

The Lands of Redhouse extend to about 234 acres, and according to the Reports obtained contain valuable seams of Shale, Coal, Limestone, &c. The Lands of Seafield and Blackburn together extend to about 483[?] acre, and exhibit sections of the principal shale seams already known and worked on by Oil Companies in Scotland.

The Shale and Coal on the three estates have been opened up by mines and pits, and the whole fields have been most thoroughly tested by borings, and the Journals of these may be seen at the office of the company.

It is believed that the purchase of the Estate of Redhouse has been arranged on exceedingly moderate terms. £7000 of the price remaining for five years at the usual rate of interest. The Leases of the other fields have also been acquired on favourable terms, the royalties payable being at the rate of 7d. per ton of shale till the Company pays 10 per cent, and afterwards rising by 1d. per ton for every additional 2 ½ per cent, and the price to be paid for these and for the Mines, Plant, Railway, Buildings, &c., is not large.

The mineral fields have been examined by Mr G. H. Geddes, Mining Engineer, Edinburgh, and his report is appended. His estimate of the quality of shale shows sufficient for a production, after making ample allowance for waste in working, &c., of over 500 tons per day for 30 years.

A large sample of shale from the Feel Seam was recently taken by Mr Thomas Wilson, Borer, who states, in a letter dated 11th October 1883 - “I superintended the greater part of the boring operation on the lands of Blackburn and Seafield. I was also present when the shale was taken recently from the small pit near the east boundary of the Seafield estate for testing purposes. The shale is found there at a depth of six fathoms, and I have not, in my opinion, come across the Fell Shale in better order. The seam lies in a most favourable position for easy and economical working.”

This sample has been practically tested by Dr Stevenson Macadam, Ph.D., &c., and by Mr Ivison Macadam, F. C. S., F. I. C., and their report, which is also appended, shows that this seam is one of the best seams of Fell Shale that has yet been found, containing 29.8[?] gallons of oil and 35lb. of sulphate of ammonia to the ton. The crude oil also shows exceptionally high results in paraffin scale and heavy oils.

In view of the diminishing production of the American Works, there is every prospect of a large increase in the value of the prolific upper shales. The quality of the lower shales – Broxburn, Dunnet, &c. - referred to in Mr Geddes' estimate, is well known, and the high prices now being got for the products of these, notably paraffin scale, has set most of the established companies to search for these seams.

It is proposed to confine the operations of the Company at first to the production of Crude Oil and Ammonia and meanwhile to develop the Works only to the extent of distilling 200 tons of shale per day, leaving thus to the first shareholders the benefit of the future extensions which the fields are capable of.

Crude paraffin works have hitherto proved eminently successful, as is shown by the present position of the Dalmeny Oil Company, whose shares are now at over 350 per cent premium. Crude oil of the quality shown in the appended report should command the highest prices in the market.

It is intended to erect the newest Patent Retorts, similar to those in use at the Pentland Works, which are giving such high results both as to quantity and quality of Oil and yield of ammonia combined with economy of working. By the use of these, also, a considerable quantity of ammonia is recovered from the coal used in firing the retorts, and if the Company's own coal is used, which, according to Mr Geddes, can be got at little expense, it is expected that the cost of retorting will be reduced by at least 1s per ton. This saving alone on the estimated output of 200 tons per day, represents a considerable dividend.

A branch railway from the North British system runs to the estate, and a short line on the Company's own property connects with the works.

The prospectus of this company seem altogether very favourable: the capital is small compared to the capacity of the works; the retorts and plant will be of the most approved pattern, and will be completed at the minimum of cost; the shale tested is of exceptional quality, and can be cheaply worked; and the shale-fields accrued are of such extent as will enable the Company in due time to largely increase its production.

The Capital will be utilised as follows:

  • Purchase of the Works, Leases, Buildings, &c., including Balance of Price of Redhouse Estate and Minerals (£3500).... £12,000 0 0
  • Oil and Coal Retorts to distil 200 tons per day, Condensers and Ammonia Plant...£10,000 0 0
  • Mines and Houses...£4,000 0 0
  • Sundries and Working Capital.... £4,000 0 0
  • Reserve Fund..... £5,000 0 0

The only contract entered into on behalf of the Company is an Agreement, dated 18th day of October 1883, between Mr David Nicolson Colton, C. A., Edinburgh, on behalf of the Company, on the one part, and Mr William A. Davis, Accountant, Edinburgh, on the other part, which deed can be inspected at the Company's office, where every information can be obtained.

In all cases where no allotment is made, the deposit money will be returned in full.

Prospectuses and Forms of Application can be obtained at the Company's Offices, 9 North St. David Street, Edinburgh; The Union Bank of Scotland, Limited – Head Offices; and Branches; or from any of the brokers in Edinburgh, Glasgow, Dundee, and Aberdeen.

Report by G. H. Geddes, Mining Engineer, Edinburgh

Having examined the grounds accompanied by Mr Wilson, borer, who pointed out the sites of the bores put down by him, and having considered the plans of the workings in Houston Coal Beam, and also the result of some additional boring, journals of which have been furnished me, I have to report that in the northern portion of Seafield the seams of shale will be most readily opened up and that the collowing is an estimate of the quantities likely to be found there, viz; Fell Shale, 836,000 tons; Mungall shale, 120,000 tons, Raeburn Shale, 107,000 tons – in all 1,063,000 tons.

From the lie of the mineral field an area of shale of these seams in the neighbouring lands of Redhouse will be won by the same means, and could be best worked along with Seafield shale. Of these three seams there will apparently be in Redhouse – Fell shale 760,000 tons; Mungall shale, 276,000; Raeburn shale, 387,000 tons – in all, 1,423,000 tons.

The position of the series of Shales which are known to lie below Fell Shale will be found over a large proportion of the area of Seafield, and I estimate that 3 ¼ million tons of Shale of these seams may be found in the northern position of the estate. The trials for minerals on the southern portions of Seafield, and also in Blackburn Estate, show that district to be cut off from the seams in the northern portion by a large dyke or series of dislocations of the strata. Those minerals will be therefore be best worked by separate winnings from the northern portion, but here too, again, the winning of Blackburn minerals will to a great extent render available portions of Redhouse, which apparently will be at least as extensive as those of Blackburn.

As to the quantity of shale it is likely will be found in this portion of the mineral field, I cannot from the information resulting from the bores and other trials estimate it at more than 1 ¼ million tons. The seam of coal known as the “Houston Coal” extends through the north-western portion of Seafield lands, and was worked to the extent shown on the plan some years ago to supply coal for the manufacture of [?] fuel. This coal would now be available for the purposes of an Oil Work, and an output of it could readily be got at comparatively little expense.

Another seam of coal, the “Limb or Hurlet Coal”, crops out, and a pit sunk to on Redhouse lands. This also could be readily worked if required.

17th October 1883, G.H. Geddes

The Scotsman, 24th October 1883