Prospectus of the Boson Oil Co. Ltd., 1884

To be INCORPORATED UNDER THE "COMPANIES ACTS, 1862 to 1880, WHEREBY THE LIABILITY TO SHAREHOLDERS is Limited the Amount their Shares.

CAPITAL £150,000 in 15,000 Shares of £10 Each. Subscriptions are invited for13,000 Shares of this Company: Deposit, £1 payable on Application, £2 on Allotment; not sooner than three months thereafter; and the balance in future calls as required.

DIRECTORS.

• George R. Glendinning Esq., Hatton Mains, Director of the Dalmeny Oil Company (Limited).
• William Holms, Esq., 40 Drumsheugh Gardens, Edin.
• John Hill, Esq, Carlowrie, Crammond
• James Jones, Esq., General Manager of the Dalmeny Oil Company (Limited).
• Kenneth Mathieson Esq., Dunfermline, Director of the Dalmeny Oil Company (Limited.)

(With power add their number.)

Solicitor—George Andrew S.S.C., 3 Hope Street, Edin.

Interim Secretary—Thomas C. Hanna, C.A., Frederick Street, Edinburgh.

Bankers—The Royal Bank of Scotland, Edinburgh, London, and Branches

Auditors—Messrs Lindsay, Jamieson, & Haldane C.A. Edinburgh.

Temporary Office—45 Frederick Street, Edinburgh.

ABRIDGED PROSPECTUS.

This Company being formed to purchase and work the Shale-field of Boson, near Cannes, in the South of France, as held under perpetual Concessions granted by the Government of France, with the Paraffin Oil Works thereon, and also leases the Shale the Concessions at La Madeleine and Auriasque, adjoining the Boson Concession, with pits, mines, and buildings and to carry on the business of Manufacturing Mineral Oils and the products thereof, and trading therein. Under the the Company will acquire:

• First.—The works at Boson, consisting of Retorts, Stills, Washers, Tanks, Engines, Boilers, other subsiduary equipment for manufacturing crude oil and refining it into burning and lubricating oils; also Shale and Coal Pits, Mines, Machinery, Workmen's and Managers' Houses, &c., together with about 100 acres of land, part which the works are situated.
• Second. A perpetual Concession from the French Government to work Shale and Coal in Boson, known and described in the Government Survey Map "Boson Concession," extending all to 761 acres, or thereby; but subject to the charges payable to the Government, which consists of (1) rent or feu equal to about one Halfpenny per acre, and (2) a Royalty equal to one twentieth of the profits realised from mining the Coal and Shale (but not from the manufacture of Shale Oil). Royalty may be estimated at 3d per ton of Shale.
• Third.—A lease for years of the Shale, and of such Coal lies in connection with the Shale, in the Concessions of La Madeleine and Auriasque—extending to 2500 acres thereby—subject to annual rent of £500, and the above-mentioned charges payable to Government.

Shale was discovered in Boson a good many years ago, and the existing works were erected with the view of working on an extensive scale. Before these works were fully completed the principal proprietor died—about a year ago—after having expended a very large sum of money; and his representatives deemed necessary to sell.

The Works—which are of very substantial description were originally intended; were originally intended for an output 33,000 tons pet annum. It is now intended to remodel and extend these to capacity of 3,500,000 gallons Crude Oil per annum—using the most improved description of retorts, refrigerating and other apparatus for extracting Solid Paraffin, and plant for the of Sulphate of Ammonia—for all which ample provision has been made in estimating the capital required.

There is no other known Shale-field in the south, and only one other the whole of France (near Lyons), while the consumption of mineral oil in the country is large and the trade in it thoroughly established. The quantity annually imported about 600,000 barrels—more than double the whole production of burning oil in Scotland. The greater part this imported oil is crude petroleum, which is refined the country. The prices of manufactured products are much higher in France than in this country. Burning oil sells at 1s 4d per gallon, against 6d in Scotland, while lubricating oil and Sulphate of Ammonia bring £3per ton more.

The Shale-field has been examined by Mr John R. Williamson, Mining Engineer, Edinburgh. In his Report, a copy of which is annexed to the Prospectus, he estimates the cost producing the Shale at 7s per ton, and the quantity in the Boson field at 2,000,000 tons, and states that much of the Shale more nearly resembles the Boghead Coal in streak and quality than any other Mineral has met. Mr Williamson deals exclusively with the Boson Concession, at the date of his inspection no more had been acquired. But as it was ascertained that the Boson seam of Shale extends into the Madeleine and Auriasque Concessions, the lease of the Shale these Concessions was afterwards secured.

In the Boson Concession there are several Seams of Coal which will be available for the purposes of the Oil Works, and a pit has already been sunk and fitted to a depth of 47 fathoms. The Boson shale has been distilled on a large scale under the personal supervision of Mr Ivison Macadam, F. C. S,, FIG., Analytical Chemist in Edinburgh. Mr Macadam spent some tune at the Mines, and personally selected the Shale from the workings for his trials.

A copy the Report, made by him and Dr Stevenson Macadam, is also annexed to the Prospectus. They found that the Boson Shale yields on average fully 88 gallons per ton of a superior quality Crude Oil. and that the products obtained were equal to any they had hitherto refined. This yield of oil is much more than double the average yield of Scotch Shales, and shows the Boson Shale to be superior to any Oilmaking material worked in Scotland since the exhaustion the Boghead Coal. The Company's undertaking presents special advantages —(1) exceptionally rich quality of Shale; and (2) The high prices of the French Market for manufactured products—the price of bunting oil being more than double its price Scotland.

These advantages place this Company in a much more favourable position for earning dividends than the most successful of the Scotch Oil Companies, some of which pay high 25 per cent, in dividends. ~ The price payable to the vendor is £52,000, which is only equivalent to very moderate royalty on the Shale, irrespective of the value of buildings, plant, and freehold land of this sum the Directors have the option of £30,000, either cash or in 3750 Shares of the Company, or any smaller proportion thereof, credited with £8 per share, thus leaving £2 per share a liability. The Capital will, in the first instance, be utilised as follows : Payable to Vendor In Shares or cash- £52,000 Supplying new Retorts, Refrigerators, and otherwise fully equipping Oilworks 40,000 Mines and Houses 13,000 Working Capital, &c. 25,000 Total £130,000 The various Agreements entered into, copies thereof, can seen at the office of the Company's Solicitor. If no Allotment is made, the deposits will be returned in full.

FORMS of APPLICATION for SHARES can had from the bankers, solicitors, and interim secretary of the COMPANY, and from all the PRINCIPLE STOCKBROKERS. In allocating shares, priority of application will receive due consideration. Temporary office of the Company-45 FREDERICK STREET, Edinburgh, 19th April 1884

The follow agreements have been entered into, and these can be seen at the office of the company's solicitor:

• (a) An Agreement between George Simpson, on the one part, and Robert Livingstone and on behalf of the intended company on the other part, dated 10th April 1884.
• b) An agreement between Jean Roussellier, Charles de Possel, and Numa Robert, and George Simpson, dated 10th March, 1884;
• (c). An agreement of lease between Arnold Henriot, for Le Compagnie des Charbonnages du, Reyran and George Simpson dated 1st April, 1884.

Copies of the Decrees or Concessions granted by the.Emperor Napoleon on 16th March 1859 and 8th March 1865 and by the President of the French Republic on the 27th September 1876 can be seen on application.

REPORT ON BOSON SHALE AND COALFIELD, BY JOHN WILLIAMSON, ESQ., M.E.

I have visited and examined the Mineral-field of Boson, situated in the Department of the Var, France, five Miles north-east of the Frejus station on Marseilles to Nice Railway. A branch line which has been in the course of construction for sometime past will, it is expected; very shortly connect the works with the public railway.

The Concession of Boson covers 50 hectares (761 acres), and occupies the lower end of a coal basin belonging to the true coal formation, of about 15 square miles in extent The lower strata contains Shale Measures, while the upper contain part of the coal measures. The dip and rise over the field is on average, fully one foot in two. The seam of shale has been opened up on it by pits and inclines upon the outcrop, for a distance of 1200 yards along nearly the whole south boundary, and it extends into the adjoining concession of the Madeleine.

The streak avid quality of the shale more nearly resembles the Boghead gas-coal than any other mineral I remember to have met with. In specific gravity it is somewhat lighter than any of the well-known shale seams in this country.

From the result of my examinations, and of careful inquiries at a number of workmen formerly employed in the mines, I found the seam of Shale to vary a good deal in thickness, and have satisfied myself that an average thickness of four feet may be safely relied upon. The roof is somewhat soft. And requires a great deal of timbering, but supplies of timber for underground purposes is readily obtainable, at prices, I believe, very similar to what rule in this country. No expensive fittings are required, and a very short time and moderate outlay should enable an output to be got, There is little or no water requiring to be drawn from the mines, consequently thecost of pumping will, comparatively speaking, nil. Labour is abundant in the neighbourhood.

The yearly fixed rent is at the rate of 10 centimes per hectare, or about one halfpenny per acre, and the royalties at a rate of one-twentieth of the profit of the shale. The profit, I understand, depends on the value of the raw material, and net on time profits of manufacture, Including these charges, which I put at 3d per ton, and all working costs, pitwood, unkeep, &c., I estimate that shale call he produced for 7s. per ton.

I further estimate that the Concession of Boson will be found to contain 2,000,000 tons of shale, at a workable depth from the seam already opened out There are two seams of coal in the Boson concession, to which a pit has been sunk and fitted at a depth of 47 fathoms. The same and other seams of coal belonging to the same group, have been extensively worked close to the march in the adjoining concession of Auriasque. The quality of these coals seems good, and I am of the opinion they can be utilised for Boson for the distillation of the shale existing there.-

JOHN R. WILLIAMSON

REPORT OF Dr. STEVENSON MACADAM FRSE &c. and W. IVISON MACADAM Esq. FCS .

Lecturers in Chemistry,

SHALES FROM BOSON.

We beg to report that we have made a careful series of experiments with samples of Shale obtained from levels and pits its the Concession of Boson, near Frejus, Department of Var, France. The various samples were taken from points selected by Mr. Ivison Macadam, who saw the quantities cut from the seams and under whose charge they afterwards remained.

The results were obtained in a Retort of the Coupee & Rae principle, constructed at the Boson Works, and which was under the control and practical working of Ivison Macadam, who made the weighing of the Shale, measurements of the crude products and subsequent analysis of such. The samples included in this report were obtained from the levels in the "Aqueduct" pit - this being the pit in which actual work was proceeding in which the shale could be obtained in an unweathered state. No.1 sample was obtained from a downset off No.3 level. The face of the shale was at this point about three metres, about ten feet, and appeared uniform in quality. The colour of the Shale was dark brown, with at light brown non lustrous streak No 2 sample was taken from the intermediate gallery between No.3 and No.2 levels in the same pit was more dark in colour than in No.2 level. No, 3 sample was cut from three points in No.2 level of Aqueduct Pit, and was also darker in colour than No.1 Sample.

The following Crude Products were obtained from the distillation of the Shale-field

(table of chemical analysis)

This Crude Shale Oil, and the products obtained are equal to any we have hitherto refined. -

STEVENSON MACADAM, F.R.S.E., F.C.S., F. I. C, &c.. W. IVISON MACADAM, F.R.S.E. &c . Analytical Laboratory, Surgeons Hall, Edinburgh, 11th April, 1884

The Edinburgh Evening News, 23rd April 1884