Prospectus of the Hermand Oil Co. Ltd

THE HERMAND OIL COMPANY LIMITED

To be Incorporated under the "The Companies Acts 1862 – 1883" whereby the Liability of Shareholders is Limited to the Amount of their Shares.

CAPITAL £140,000 IN 14,000 SHARES OF £10 EACH

SUBSCRIPTIONS ARE INVITED for the 14,000 Shares of this Company; Deposit, £1, payable on Application; £1, on Allotment; £1 not sooner than Three Months thereafter, and the Balance in future Calls as required. It is not intended to call up more than £8 per Share.

DIRECTORS

• ROBERT SLIMON of Whitburgh, Merchant and Shipowner, Leith.
• JOHN ARMOUR, Niddrymains, Winchburgh, formerly Coalmaster, Kilwinning, Ayrshire.
• ALEXANDER DOUGAL, Brick and Tile Manufacturer, Linlithgow.
• ROBERT THOMAS MOORE, C.E. and M.E., 134 St Vincent Street, Glasgow.
• ALEXANDER C. THOMSON, Manufacturing Chemist, 7 Ardmillan Terrace, Edinburgh.
• JAMES THORNTON of Hermand, Coalmaster.

Solicitors-

• Messrs DRUMMONS & REID, W.S., 21 Charlotte Square, Edinburgh.

Bankers-

• The COMMERCIAL BANK OF SCOTLAND, LIMITED, Edinburgh, Glasgow, and Branches and 123 Bishopsgate Street, London, E.C.

Auditors-

• Messrs SCOTT MONCRIEFF & THOMSON, C.A., Edinburgh.

Temporary Offices-

• 20 GEORGE STREET, EDINBURGH, 11 WEST REGENT STREET, GLASGOW.

Interim Secretary-

• JOHN MUIR, 11 West Regent Street, Glasgow.

PROSPECTUS

This Company is being formed to carry on the business of Manufacturers of Mineral Oils and the products thereof, and with that view to lease the Shale, &c., in the property of Hermand, including the lands of Birniehill, and to purchase certain leases of Shale, &c., in the properties of Wester Breich, Mid and Easter Breich, with the Pits, Plant, and Houses thereon, all situated in the Parishes of West Calder and Livingstone.

The Shale-fields of Hermand and Birniehill adjoin each other, and form a compact area belonging to one proprietor. They are connected with the Caledonian Railway near West Calder by a private branch line. The Breich properties are intersected by the Breich Branch of the Caledonian Railway, and the Shalefields of Mid and Easter Breich have been opened up and developed by three pits, two of them to the "Fell" Seam, and the other to the "Broxburn" Seam. All these pits have railway connections formed to them.

The Shale-fields and the Pits have been examined by Mr John R. Williamson, Mining Engineer, Edinburgh, and Mr John Reid, Mining Engineer, Glasgow, who state in their Report, a copy of which is annexed, that the fields contain the several Seams worked by the different Oil Companies in the East of Scotland, including those known as the "Broxburn" and "Dunnet" Seams; and that the Pits on the Mid and Easter Breich Fields already opened up are well fitted with pumping and winding machinery, and capable alone of furnishing an output of 200 to 250 tons of Shale per day.

They estimate the available quantity of Shale in the various fields at over 8,500,000, equal to a production of 1000 tons per day for thirty years.

In a Report made by Mr William Jack, Managing Partner of George Shand & Co. Oil Refiners, Stirling, in October 1883, he stated:-"I have examined the Shales presently being worked at Mid and Easter Breich. They are what are known as the the 'Broxburn' and 'Fells' Seams, and are of excellent quality. I also know the quality of the 'Broxburn' and 'Dunnet' Seams on Hermand Estate. The Broxburn Seam is similar in quality to that worked at Breich, and the Dunnet Seam, although giving a less quantity of Crude Oil, gives a large yield of Ammonia. The Oil made from these Shales is of superior quality."

It is intended to develop the Shale fields to an output for the present of 400 tons of Shale per day, and to erect Retorts sufficient to distil that quantity. It is also intended to erect Refining Works of the most improved description to refine the Crude Oil into its various products. These works it is proposed to place either at Hermand or Birniehill or at Levenseat, near Fauldhouse, where the Company have the option of acquiring a suitable site on lands belonging to Mr James Thornton.

This Company, it is believed, will hold an exceptionally favourable position, on account of its being in possession of the Shales of various Seams, which will enable the Company to increase at any time the working of those Shales, the products of which will yield the most profitable return. The experience derived from new Oil Works erected during the past few years will be a useful guide for selecting the most suitable plans and designs of Oil Manufacturing Works, while the present moderate rate for labour, coupled with iron and building materials at a cheap rate, enable the works to be erected on most favourable terms.

The price to be paid for the Leases of Wester Breich, Mid Breich and East Breich, and the Pits on Mid and East Breich, with the Plant and Houses pertaining thereto, together with the Railway formed at Hermand, is £11,000. The Leases of Mid and East Breich, and the Pits, Plant, and Houses thereon, belonged to Mr James Thornton and the representatives of his deceased brother and partner, Mr Thomas Thornton, and the half-share of the latter was acquired by Mr James Thornton at £1500, being equivalent to a price of £9000 for the whole. For the Railway, which is above one mile in length, constructed into Hermand and Birniehill, the Company are to pay £2000, which is within the amount of expenditure made in constructing the same. Besides this sum of £11,000, there is no further payment made to Vendor, and no promotion money beyond the actual outlay in forming the Company.

A sketch of the Properties of Hermand and the Breichs, prepared by Mr Robert Thomas Moore, C.E. and M.E., one of the Directors of the Company, and which also shows a general section of the Shale measures, accompanies the Prospectus.

The only contract entered into on behalf of the Company is an Agreement between JAMES THORNTON of Hermand, West Calder, on the one part, and JOHN ARMOUR, for and on behalf of the Company, on the other part, dated 23d July 1885, which, together with Copies of the Memorandum and Articles of Association, can be seen at the Office of the Solicitors.

COPIES of the PROSPECTUS and FORMS of APPLICATION for SHARES may be had at the TEMPORARY OFFICES of the COMPANY, and from the SOLICITORS and BANKERS of the COMPANY, or from the principal STOCKBROKERS in EDINBURGH, GLASGOW, DUNDEE and ABERDEEN.

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

REPORT by JOHN R. WILLIAMSON and JOHN REID, MINING ENGINEERS.

We have examined the Mineral Fields of Hermand, including Birniehill, Wester Breich, Mid Breich, and Easter Breich, situated in the Parishes of West Calder and Livingstone, and beg to report as follows:- These fields, extending to upwards of 1150 acres, have been proved to contain the various Seams of Shale hitherto worked by the several Oil Companies in the East of Scotland, including those known as the "Broxburn" and the "Dunnet" Seams.

On Mid and Easter Breich three Pits, connected with the Caledonian Railway, have been opened up to furnish an output from 200 to 250 tons of Shale per day. The Pits are lightly watered, and are well fitted with machinery for pumping and winding.

After careful investigation, we estimate the total available quantity of Shale in the various fields at over 8,500,000 tons, equal to an output of 1000 tons per day for 30 years.

We are of opinion that a supply of Shale should be obtained from these fields at a cost not exceeding that of the other Oil Companies in the district, and this is confirmed by the actual cost of working. The Lease of Easter Breich has 23 years to run from Whitsunday, and Mid Breich, extending to 180 acres, 4 years from Martinmas 1885, but negotiations are in progress for its renewal to 31 years. Wester Breich Lease has 30 years to run from Martinmas last, while Hermand Lease has been arranged for 31 years from Martinmas 1885.

The lordships, taking the available quantity of Shale to which these apply, will average over the whole about 8d. per ton of Shale, which rates, looking to the position of the fields, we consider moderate.

JOHN R. WILLIAMSON, Edinburgh. JOHN REID, Glasgow.

EDINBURGH, 1st July 1885

*A new Lease of Mid Breich Minerals has now been granted for 31 years from Whitsunday 1885, in terms of the negotiations referred to above.

The Scotsman, Saturday 25th July 1885