Image

October 29, 2016

 

The oil wells are pumping, the loans are slowly being paid off and there is money in the bank.

That was the news from Collins Barrow Auditor Peter Falice during the Petrolia Discovery Foundations Annual General meeting.

In the last few years the foundation which runs and preserves the historic site has struggled. In 2014, it took out a $150,000 loan for the Sarnia Lambton Business Development Bank to consolidate its loans. Then, the long-time general manager and only employee of the site passed away. When the volunteer board recognized the financial difficulties, it asked the Town of Petrolia to take over management of the site. That lasted a few months. The town stepped away from the site after a building inspection showed a number of buildings and walkways needed to be demolished.

But Falice says the volunteer board put their heads down and got to work and now what was a tough financial picture is improving.

Falice told about 30 people at the meeting, the foundation generated enough money last year through bingos, donations and oil revenues to operate with a slight yearly surplus. Discovery’s deficit has shrunk from $205,000 in 2014 to $186,000 in 2015. “The foundation stopped making loan payments for a year but they began again this August,” says Falice. “This is a good financial statement….the value of the property is high and your debt is relatively low. What you’re struggling with is cash flow and hopefully that will get better.”

Dawn Sperling, the foundation chair, says that will happen as the price of oil climbs. Sperling says 10 wells are now pumping well compared to five in 2015. Oil production climbed from 362 barrels in 2014 to 684 in 2015 and so far in 2016, 864 barrels have been sold.

But that hasn’t translated into a lot of cash. The price of oil is hovering around $50 per barrel compared to $90 a couple of years ago.

 

“The price is starting to come up,” says Sperling, but it is now where we want it to be.”

The foundation plans to bring more wells up as soon as possible to increase the site’s cash flow. It also wants to rebuild the failing wood walkways as soon as possible. “Once we get the walkway done, at lest we will be able to snow the field and Fitzgerald Rig and that is what draws the universities.”

The foundation is also actively looking for grants to renew some of the historic buildings on the site. The county building inspection showed major deficiencies in the Blue House which serves as an administration building, and the old church.

And Sperling says to move some of that work forward, the foundation needs a full-time employee. “Most of these goals can be achieved but without a dedicated volunteers, we would not have be able to move things forward…Another thing we do need is a manager, someone who is here to deal with the ins and outs of the site.”

That too will depend on revenue, she says.

Share This

Image
Front Page

Petrolia, WM give out $15K in green grants

April 23, 2025

There will be more trails, trees and environmentally-friendly lighting thanks to the Town of Petrolia and WM’s Green Grants. The town announced $15,000 in funding on Earth Day. 2025 Successful Projects: The IODE Margaret Stokes Chapter was successful in their application for Moncreif Park and JubileeTrail Revitalization in the amount of $5,000. The funds will be used to plant native

Read More

Image
Front Page

‘We will be fighting this’ bid to push through York1 plan Canniff tells province

April 23, 2025

Heather Wright/The Independent When Chatham-Kent Mayor Darrin Canniff first got the call, he thought it was good news. Instead, he’s gearing up for an all-out fight to stop York1 Environmental Waste Solutions from pushing through its plans to reopen the derelict Dresden dump. Canniff got a call from the Minister of the Environment’s office Thursday around noon. When he returned

Read More

Image
Front Page

Petrolia Water intake contractor approved

April 22, 2025

Heather Wright/The Independent Two major projects in Petrolia are moving forward. In 2022, the town received of a $16 million grant to replace the Lake Huron water intake pipe which was installed in 1944 and is nearing the end of its life. Monday, Petrolia council awarded the contract for the new water intake at the Brights Grove Water Treatment Plant

Read More

Image
Front Page

Environmental Defence calls PC’s move to speed up York1 project ‘shameful backpedelling’

April 22, 2025

Heather Wright/The Independent Traumatizing. That’s what Thomas Peacock, one of the leaders of a community group fighting the revitalization of the Dresden dump, calls the Ford Government’s decision to allow York1 to redevelop the land without an Environmental Assessment. Members of the Dresden community became aware of the move not from their local MPP or a news release, but by

Read More