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Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, January 13, 1910, Image 12

Image and text provided by University of California, Riverside; Riverside, CA

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn85042462/1910-01-13/ed-1/seq-12/

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Lease Typical of Field. According to
Estimate, Has Thirty.Seven
Million Barrels of Oil In
Sand Strata
The present year promises to be the
neatest in the history of Coallnga,
*'„,,. 5 50 wells are now producing
Zm,m barrels of oil a month. New
we f aYe coming In almost dally the
territory Is being enlarged, and com
panies are organizing to exploit the
" The' StaWct pawed out of the pros
pertive stage and activity really began
in 1888 when the Producers and Con
sumers' Oil company started systematic
work in section 20. Three years later
the property was sold to the Coallnga
Oil company, headed by Joe fhanslor,
now president of the Associated Oil
company, and C. A. vanned. They
drilled a number of new holes, and af
ter many trials and tribulations placed
the company on a dividend basis, the
amount paid to date being $1,« 00,000.
From that time forth Coallnga has been
to the front in the production of oil In
Ca"t f°th n elapresent time that part of the
field known as the west side Is attract
ing a deal of attention. Many operat
ors have been successful in this part,
and therefore to pick one for a type
la difficult, but Allen O Nichols of the
Oil industry names the Premier Oil
company as typical of the field.
Premier Makes Good
"Perhaps," writes Mr. Nichols, there
is no more typical company than the
Premier Oil company. While a com
paratively new company, only organ
ized a little over two years ago, it has
already made good. The geographical
location of this company's land is al
most in the center of the field; the
depth of sand and thickness are about
an average, so It will do admirably as
an illustration of what can be done
with a good piece of land properly
handled and correctly selected.
"The company was organized in Sep
tember, 1907, by T. Spellacy, P. E. Spel
lacy, C. J. Berry, J. D. Thompson and
W M Wallace. Mr. Spellacy has been,
and is still, the president of the com
pany, while Mr. Wallace is secretary.
The capitalization of the company is
$1,000,000. The company purchased from
the Union Oil company a one-sixth roy
alty lease on 160 acres of section 24,
20-14 for which it paid $100,000, one-fifth
of which was to be paid in oil. This
has been paid.
"The property is surrounded by such
developed holdings as the Claremont
on the north, the American Petroleum
company on the east, the Kern Trad
ing and Oil company, which is the oil
department of the Southern Pacific, on
the south, and the Traders and the
Inca on the west and northwest. Every
foot of the ground Is proven, and the
history of the ten wells already drilled
demonstrates that the formation is a
blanket one.
■i "The first well was started on Oeto-
'. \ Oil Is the One Best Investment
' ■■'" '- s ■ Put Your Money in Oil and You Are pl^Pr : >': ™ * t-^
■ ■■ : ■: Bound to Reap Large Profits ' :B
, ,'. ' ' On is the greatest money-maker in California. Oil is the greatest dividend producer and the |^V;' s> ' ''* ' %WBml *&!?* ■*1 JSP* ' ' •*'• 4:' -']&&&' - --^
*- r * ' ' *' great majority of Southern California investors have discovered this fact. The business in ' « : ■-';*: ">'%,'*-£ *' ' :\\, i j^T lv^- V - 'v^&F' • M
•'• . ' . Oil Stocks transacted on the Los Angeles Stock Exchange last year conclusively proves this I',J > . - f.^W^^lp J* *» * ' <tfs7j. & > ' itS^-■' ' ''V*f|
"?}•„''" „,, ,'j ' . fact. The total amount of the year's business on this exchange amounted to $6,340,025.03, and ..V „ " , • \S* '^' *^*t~sj* It ' *'$f *^--j^.< ";Miff *■ *■ <£% „' -j :■ ;^%
"fjjj^ffii&^fi --"?;' ' i: out of this total $5,015,728, or nearly five-sixths of all the business transacted, was in oil t^'A^ £ ' ->h /t I . ''■' I J~*M™s?. < ■<' •-•* ,* J '
<^ Now then, Mr. Investor, since you know these facts, why not take advantage of them and %ff^V^%'fi,' >■ MM ' i^jß. v ■H\ *'? '' *-^ ■'^.^*Vf^
k*j ""^'^T'V" secure your share of the profits to be made in legitimate oil investments this coming year? fd^'J! I*' ! - <-* ftti> *-^iV. "^^^iV^? "*^l
i;^^#;n£^'~>,V We have made thousands of dollars' for our clients in the past year and we are sure to dupli- Q*f*'X&?'' - ' - ' '•'l^^^^^l^^''^;^^^,..^^^ B^S4^-H*,^
W&iM Therefore, our advice to you is get in line, put your money in oil, and do so at once. S-v - J ', *-*~ : «P^.**- 'W^BlWat '-JB «l« WJJn
■|||^|!P|fH Ventura Oil Development Co. &v., ;-&m '.£mStt^
Ws%M&^i' fW? Nr> Pref*rrad Stork No Promotion Stock p»rtv •' i««t"r« who were ,ur«in of thr Ventura
>■ f*nV *L . .J. .«• S », 1 •• «« OU Deyelopment Co., examining the rich oil .eepace*.
*; $§S& Capital Stock $3,000,000 Par Value $ 1 .00
•' "' "' '^^^M- '" *? The present holdings of the Ventura Oil Development Company consist of a 50-year lease on 640 acres of oil land' with an option to purchase outright. Royalty one-sixth Hold
. :* ;, .. • .■: ings located at Pirtf, Centura county, California. There is easily room for from 250 to 300 wells. This tract is bounded on three sides by the Nodclla wells, which have been pro-
Irf— -■■■ ■ "'MSmj*^^.'*,*.'*.*?*. T.:.,-^J ducing for many years. These wells prove the ground and make it almost positive certainty that this company will prove an immensely profitable one.
Well So. I on the property el th* Vrutura Oil Development i. ». ; ,\ /~>l> A VITY CSV OIL.
COST OF DEVELOPMENT <<- j The oil here is Qf high gravityf running from- 25 to 35 degrees, exceptionally adapted for refining purposes, and
The cost of 'drilling wells is much less than in most oil fields, as it is not necessary to use the expensive heavy .; j therefore in heavy demand at a high price. The market is unlimited, .
casing that is used in other parts of the state. ; Only a short distance away, in Torrey Canyon, the Union Oil Company secured its first wells, which
Oil for fuel and water for all purposes is right at hand, oil from our immediate neighbors, water on the : formed the nucleus of what is now a company with one hundred millions of dollars in assets. •
property. Water costs many companies thousands and thousands of dollars a year. „ '. ITDPIT TRIP OF INSPECTION '
The property is located within a few minutes' walk of the railroad and a mile of pipe will bring the oil to ■ I 1 Kite, I Ivlr V/r ir* ora,\* i iv» _ r , ■ ,
tank cars by gravity, thus eliminating the cost of pumping through the pipe line. . \ If 'you are skeptical let us take you to the property at bur own expense. ou don t have to buy a share ot
The property is in the heart of one of the most prolific agricultural regions in the state and everything is ; gtO ck until' you have seen with your own eyes and are convinced that as an investment proposition the stocK
cheap, here again lessening expenditures such as less favored localities are forced to make. Living is cheap. \ of the Ventura Oil Development Company is the best of the market today. Many people have already gone as
; our guests, and we should like to take you. Write us at once for further particulars regarding this free top.
The property is being developed very rapidly under the supervision of a very capable manager, Mr. W. D. ' " _ , . . „• ■ n .. , v u<■ ~ „,11 vj™.^
Daniel, who personally looks after every detail of the work and spends his entire time on the property, which The stock of the Ventura Oil Development Company has been selling so rapidly that we have but a small block
means success for the stockholders. We have just received a letter from him stating that well No. lis down 153 ! left to be sold at the present price of 10 cents per share. Therefore if you wish to secure a block of stock at
feet and that work on this well is progressing nicely. He also states that he expects to spud in on well No. 2on ! ; that price, we earnestly advise you to act promptly, otherwise you will be forced to pay the advanced price.
the 10th of this month. Mr. Daniel's letter follows herewith: $ - You can- buy the stock bpth for cash or on the installment plan. Our terms are 20% down and 20% per
Lincoln Mortgage a Loan company, Los Angeles, cai. • ■, month on the installment plan, and a discount of 5/o is allowed for cash. , . / t tv
Gentlemen: Everything at the property of tho Ventura Oil Development Company at Plru is progressing nicely. Well ]} j T . j „]_-. vo .. r orf l er at the oresent low price. Make a reservation at 10c pending your further
No. Ila down 153 feet. The rain has Interfered with our hauling some, though everything necessary to complete this well, , ■ . i>c sure an s, P ldcc >uur urucl ,- ta ,_ vril . ran ,ff nr hut 11V ar nnre ' %
except the casing, which we are now hauling, Is on the property. We will surely have a well here, and it promises to be investigation. Buy as much or as little as you call duorn, Dill Duy di once. ■ . .. .
a. good one. : . n ] Call at our office tomorrow, if possible. See the maps, read the expert oil men s report and get full in-
I expect to spud In at well No. 2 not later than Monday. January 10. Our location of No. 2ls about 200 feet west of , • v." aL ""*■* ' r •
north and south line on southeast quarter of section, and 600 feet from well No. 3of the adjoining property. According to ■ formation. ,-I^l > .'i' ' -.i .j 1 . „,:■!! nfflnt i v
the logs of our neighbor, we should get the oil sand at a depth or about 700 feet. ) If Y ou cannot call immediately, fill out and mail the coupon below without, delay, and you will prompuv
Weather favorable, we will complete this well in a very short time. Tours ve^^naly^ DANIEL. . receive literature which will Supply you with full information. , ", . .
f— ! i.NtoKMAT.o.v .o, i-o> 1 [We will also mail you the "Oil Book," which tells all about California oil stocks. How stocks earn 12% to 30% I u * cow mort« S K *Ti Io»n!?» PON W* "
uxcom mobtoaue * wax .^iuin.. /*,,., ' dividends. How you can invest idle money to the best advantage. How you can invest on the monthly pay- o«-"s citu«.. National Baiiii Buiidinr. ix>» ab««i«, cai.
BZt-tll Cltlrmg National Bank nulldinf, Jam Ancelfa, Cat. .;. _.. „ , „ . ... , , • . »„*!. '. Gentlemen rlralo ■ »uniilr me with full lnfonmatiftn a«
Gentlemm—Plmm« «-nd me. without <-o»t br obligation on ment plan. he "Oil Book IS published twice every month. to how I ran take a free trip to the Ventura OH Devflop
my part, map anil further Information rrganUnK the VKN- • ' i ment Company'! property.
Tl-RA Oil. DKVELOPMKMT COMI'ANVi aim free copy of , • . . • v . „ . , _ . -.._ ' men! company p .
th. -oil Book.- I*l m - a. /Ml .-^ fs 622-623 Citizens National Bank Bldg. Nam....;,. ..;................
>-:; r .::::::::::::::::::::::::::::::::::::::::::::: | Lincoln Mortgage ®> Loan Co. . l os An g ei.s,ci. ;, \ rr::::::::::::::::::::""-::::::::::"^'
her 1, 11)07, and was finished. ■ belated
Christmas present, on Pecember 26 of
the same year. Since thut time the
development has been pushed on rap
idly as the finances of the young com
pany would allow, until there are at
present ten producing wells. No. 9 and
10 having be*n brought in on the same
!,iy In December last. Two more wells
are now being drilled, and work will be
| continued until forty wells are finished,
One lor BftOO four acres. The present
rate of production, Including the two
i new wells which are too new to be
' doing their best, is between 40,000 and ,
olKOflfl barrels a month.
"It Is interesting to figure what this
lease will produce when fully developed.
I If ten wells produce r.0,000 barrels, it
might be said that forty wells would
produce 200,000 barrels, but this would
be wrong, tt would be too small, even
though it sounds large. Of these ten
wells, seven are drilled along the west
line of the property, where the sands
are not so deep or so thick, so that the
proportionate production of the wells
along the east side as against those
alone the west side will doubtless be
nearly or quite two to one. _ I
"Some other way must lie devised if j
the possible, or even probable, pro,ln.'- |
tion of this particular lease is to be
figured out and the consequent earninsrs
of the company are to be arrived at, as
since it has a perpetual pumping privi
lege as long- as oil is produced in com
mercial quantities. It has a right to en
tirely exhaust the sand, if possible.
Oil In Sands Vary
"Some years ago the California pro
motion committee, under the direction
of L. P Crane, Isued a circular snow
ing tho amount of oil in sands of vary
ing thickness and of varying satura
tion of from 10 to 20 per cent.
■Tsing this table as a hnsK nnd
figuring' on an average known depth
of sand of 123 feet under tills property,
wo have the stupendous total of 37,
--296,000 barrels for the entire quarter
section, figured on a saturation of 20
per cent. This may be a high esti
mate of saturation, but it has been ex
ceeded in the Los Angeles and Kern
river fields, also at Splndletop and in
Baku, Russia. Certainly not all the oil
could be saved, but most of It could,
and even if only half were saved and
that half sold at CO cents net, the total:
amount received would be $9,324,000.
"Following along this same line, it j
would take a well pumping fifty barrels
a day. 300 days a year, 16.63 years to
exhaust the oil In one acre of oil land.
If this quarter section is drilled up as I
intended, with forty wells, there will j
be four acres instead of one to exhaust, j
which should take four times as long,
or practically sixty-three years."
lIAKERSFIELD, Jan. 12.—The Midway Six,
operating on twenty acres of land leased from
W. C. Hall and of which Colon 'Whittier la
the manager, and which is located In close
proximity to the Santa Fe'a big well, has
gone Into sand at a depth of 1400 feet. The
oil and sand was thrown over the derrick by
the terrific gas pressure, but after the first
blowout no further effort was made to pene-
trate the sand, the management preferring to
wait until some storage Is provided. The wen.
from Indications, promises to be a big pro
ducer, rivaling that of the Santa Fe.
The Santa Fe's well on the same section is
Increasing In volume, the output for the past
week being greater than at any former time.
■* NEW YORK. Jan. It. —Copper, quirt ; <J>
<•> standard spot to March, *i:t.s.">@l:f..">.">. ■•
... Lead, «4.6754®4.'J214. Spelter, [email protected] ■•;
I <s> 6.25. Silver, Bl S-Se. ■'/
Derricks, Buildings and Sump Holes on
Premier Lease in Section 24, Coalinga
\'"' ' ' ' s iijj '■■" " I -
:t% ,x -'*V . sssm plll«l • :.: t »-?■»' :•■■.'.^
——————— __—___-_ —
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. r' ■ . ;?.
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--.-' ■ '•''.•.* i : ■:-. •. ■ '.'■■:■' ■■ '.:■';. ■■■.'■'■ ' ■■ ' ■- >-.-'. .. ■- ''. ■■-. a.■ -■ .-. . ' ■■'• ■■ ■ .-' ■ ■ ■..■"■■■ '.:•.-. :' ■• ■'■ .- ..! ■•'••■;-- ..".'■. ' ■ :■:■ ■■ ■."■■■■•: :" '■■"■ ■■■.■'. :.■■■ ■■■; ; ': : ■'' ■■..: ■ ■ '?■, ''■ ■."■■■; '■■ '■■ ■ ■'■■:■ ■■■;: :'■ .' ' :■: ■•■'■
At upper left is looking up Derrick avenue from the southeast corner of Premier lease, showing wells Nos. 9, 10 and 11 of the Premier, and Nos.
2, 3 and 4 of the.American Petroleum, the Claremont on the left and the Southern Pacific on the right in the distance.
At upper right is well No. 5 and office building of Premier Oil company.
To the left in the center row is cook house, bath house and two bunk houses of the Premier Oil company.
To the right in center row is sump hole No. 8 of the Premier company, showing reflection of Nos. 9 and 10, two wells of the American Petro
leum company, and No. 11. *.«.,.*««
At the lower left is looking northwest from the southwest corner of Premier lease, showing property of the Traders, Inea, K. T. i. O. Company
At the lower right is view from American Petroleum well No. 1, at the southeast corner of Premier lease, showing Premier Nos. 9, 10 and 11, and
in the background the Claremont, Traders and Inca.
NEVADA. CITY, J»n. 12.— As has been ex
pected for many weeks, the famous Greek
ledge in the Union Hill mine has been cut In
the 600 level. The ledge ranges from sixteen
to twenty-two inches In width, and the ore
being extracted worth between $16 and $20 a
ton. This is a veritable bonanza, considering
the ease and cheapness attached to extracting
the ore.
The Union Hill ledge has also been cut. It
Is between five and seven feet wide and pres
ent values are «7 a ton, but even this leaves
a handsome margin of profit.
Superintendent Graham is highly pleased
with the results so far obtained. The Union
Hill, in the belief of men versed in mining,
will become one of the largest producers in
the state in time.
The Consolidated Oil company, operating In
the Coallnga field, hag reached a depth of 1350
feet, entering the soft sand characterized in
the lo*r of the Commercial Petroleum. Water
in small quantities was encountered and this
will makn it necessary, as a precautionary
measure at least, to finish the well with PA
inch casing- Before shutting off the water.
however, the management expects to carry
the well down halt way through the eighty
three feet of dark shale that shown gas.
which Is the last formation rioted on the log
of the Commercial Petroleum.
The Indications are so promising for a first
class well that the management announces It
will take no chances of ruining the well by
having any water in the hole when the oil
sand is struck. The water rises in the pips
about 300 feet and, as there is no great pres
sure, to cement it off will be an easy job
and one that will need to stand only three
or four days. ,
East Half of Section Eight, Where
Theory of Light Oil Is Ad
vanced, Figures in Deal
of Local Men
COALINOA, Jan. —A deal has been con
summated here whereby Nat C, Goodwin, the
comedian, and other Los Angeles persons,
purchased the lease obtained by 1-4. R. Me-
Cullom to the east half of section S. 19-13,
from William Gray, Bert Williams and W.
W. Terrlll.
The deal Is an important one. In that, if
the development work is successful, the field
will be extended by the addition of miles of
valuable Hnht oil territory. The owners of
the land have given the territory a close
study for years and, after the sinking of a
test well and the study of the outcropplngs,
have concluded that Jlght oil is to be found on
the half section, and they are enthusiast la
in their belief.
The land lies a mile north of the famous
Homo and Coallnga Oil 'company properties.
Messrs, Gray nnd Williams advance the the
ory that the Home and Coallnga are produc-
In from a pool which Is supplied from the
territory to the north. Drilling around the
edges of the properties* has encountered gran
ite, which Is pointed to as substantiation of
the pool theory. The anticline is three-quar
ters of a mile north of these famous holdings.
The formation haa been traced north and
northeast without a break.
Give Indications of Oil
The out (Toppings of sand and the test well
which was % drllled about 380 feet deep when
the casing, collapsed a few months ago, give
indications of oil of the same character as
obtained by the Home and Coalinga. These
facts have given rise to the theory that the
oil In the Home pool Is forced over the
anticline by the great pressure from the up
per territory, and that the real light oil ter
ritory lies undeveloped In the north.
This, however, contradicts the reports of
Ralph Arnold, the government geologist, but
the owners declare that the report of the gov
ernment man has been found at variance with
the conditions in this particular locality in
several instances, anil they will uphold their
theory until drilltiß tells the tiile.
McCollum UCllred ;i twenty year lease with
the prlvilPKe of a ten your renewal. The
property ownere rue to receive a one-seventh
royalty and ten wells must be punk in five
years. The consideration obtained by the sale
of the lease has not been made public.
It is understood, a $1,000,000 corporation,
probably called the Nat C. Goodwin Oil com
pany, will be organized to develop the prop
NEW YORK, Jan. 12.—Elliott Woods,
superintendent of the capltol at Wash
ington, is in New York to discuss with
architects here plans for remodeling
the hail of representatives, "it has
been determined u> decrease the size
of the hall," ho said, "by about a third.
This will involve practically the recon
struction of the. house wing of tho
I'iipitol from floor to mi if."
•— |-x|- r- "CALIFOKNIA HED BOOK,"
■■* 1^ rw~ presents two maps, one show*
111 Ing all the oil lit Ms of Callfor
* ■•"■"■ n i a> the ether the Sespo dll
trlct of Ventura county. A beautifully Illus
trated book, written by a student of the oil
industry. Absolutely Free to those Interested
or wishing to share In th>< -mllllon-dollac
monthly dividends. Write for It.
C2O Laughlln building, :.oi Angeles.

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