In September 1966, Hubbard publicly announced his resignation as President of the Church of Scientology. Hubbard announced plans to return to his 'former professional' as an explorer (p. 263). On 22 November 1966, Hubbard incorporated the "Hubbard Explorational Company".

The first ship, the Enchanter, was purchased by the Sea Org in late 1966. Shortly thereafter they purchased another ship, the Avon River. The Enchanter sailed first to Gibraltar and then to Las Palmas (p. 265). Hubbard was seriously ill and in a hotel room in Las Palmas. Follower Virginia Downsborough reports that Hubbard was widely using drugs and was in a state of deep depression; He reportedly told her "I want to die" (p. 266).

Downsborough moved in with Hubbard, began helping him get off the pills, and helped him start reading his mail again. After about three weeks, he began to go for walks and recover from the episode (p. 266).

As a result of this episode, Hubbard authored "Operating Thetan Section 3" containing The Wall of Fire Xenu story (p. 266).

During this period, Hubbard experienced frequent temper tantrums which he believed were triggered by scents or dust that were imperceptible to other (267).

The Avon Hill arrived in Las Palmos and underwent a refit. While in Las Palmas, Hubbard dictated a lecture which referenced an international conspiracy of bankers and media magnates to destroy Scientology (p. 270). While the Avon Hill was in drydock, Hubbard ordered the purchase of the Royal Scotsman, a 1936-built cattle ferry (p. 270).

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