About two years ago an aboriginal at Alice Springs in Central Australia reported that at a spot near the western extremity of the McDonnell Ranges the earth, if thrown upon a camp fire, did not extinguish the flames, but on the contrary increased the blaze. To those who heard the story this suggested the occurrence of oil, and it was decided to make some investigations. With the assistance of the native the spot was visited and located on the map. A sample of a white substance, which stimulated the burning of faggots, was forwarded to Adelaide University for examination and proved to be potassium nitrate. As a consequence Mr. C. T. Madigan, B.E., M.A., and myself paid a visit of inspection to the locality.