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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, July 28, 1934, Image 1

Image and text provided by Montana Historical Society; Helena, MT

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1934-07-28/ed-1/seq-1/

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Be l*KK <X>PY, CANADA. lOr.
Slow progress marked the past
week en two crucial test wells, one
In the Valier area of southern Cut
Bank field and the other still
farther south, on Pendroy structure.
Both wells are due lor comple
tion during the coming week.
The Barmac-Brunnlng test on the
Valier area, SW* SW* 1-31-4W,
Is today drilling at 2353, after har
ing underreamed the pipe down to
that horizon. It 4s due to pick
up the sand at 2650. This is the
first well on the south side of the
Marias river in the Out Bank area
and it is checking structurally with
the field. The only question Is re
garding the presence of the Cat
Bank sand this far south, li It
finds the sand present, it opens up
another 60,000 acres of potential
oil land Increasing the field's pre
sent proven area of 114 square
At Pendroy, six miles west of the
Pondera oil field, drillers slowed
up considerably, reporting a gain
of but 130 feet for the week. The
hole bottoms at 2115 and this
crucial test should be a completion
early next week. Location Is NIB
3E*NW* 20-27-6W, one mile
northeast of the town of Pendroy.
Possible Cut
In Allowable
Slowing Pace
With talk of proratdon, activit
ies In Kevln-Sunburet field slowed
down this week. One new location,
was announced.
-JPotlatcb-Fee No. 2. NW SW*
SW* 21-34-rw, Is a location.
Nepstead-Helgeaon No. 8, NWH
Nrw* 28-86-1 W, la drilling atll76.
They had the red beds at 1160.
W. C. McKnlght No. 1, 8B NWIt
SW* 19-8 6-2W. apndded July 24
and is driling at 160,
In Devon field, Bueher-Frazer
No. 1, NE* NE 14 29-33-2B. Is
etUl drilling, at 1480, after having
picked up 6,000,000 cubic feet of
In Flat Coulee, casing has been
reamed down and drilling recumed
with two crews at 840 feat.
kb on am
Oat Creek.
Kevin-Sunburst .
Pondera -
Buckley Border
Cut Bank-.
Lake Basin.
„ 2.600

Big Mndy.
Elk Basin.
Crass Creek
La barge ..
Lance Creek.
Lost Soldier.
Oregon Baaln
Rock River.
Salt Creak.
Garland -
1 Byron_
Badger Benin
Dallas-Derby ...
Dutton Creek.—
Grey hull
Hamilton Dome.
Hudson —■
.Osage -
Pilot Bntte.
Polston Spider
■ M0

South Caspar
Teapot -
Black Mountain.
. »6.624
Total Mountain S t nt ML-48,469
Allowable increased
Montana's allowable production for Angmt has been Incr e a s ed
by the Petroleum Administration to 8,800 barrel* per day.
«ana and Wyoming were the only states to get an Increase tor
Angn*tt. Montana will exceed its July allowable. An J
Jane allowable was 8500 barres per day and the protection
was actually 9.050 barrels per day. Howerer, actual sala and
delivery of crude amounted to 9830 barrels )per day,
that there was a market for more than dm state V» predation.
With Montana storage three q Barters empty, the market
sddored healthy by the Montana Petroleum Conservation Board
through whose effort# the August Increase was secured.
Mr. Operator: What Will
You Have-Proration or
Cuts in Crude Prices?
An Editorial
From many operators and from others familiar with the
situation in northern Montana oil fields, The Journal has
learned that the old "army game" is about to be placed back
in operation in northern Montana.
A word of explanation as to how the old army game works
on the oil industry might not come amiss at this point.
The story is about as old as the oil business. The buyers
of crude oil raise the price to- instill and encourage develop
ment. As soon as the boys are weH on their way to supply
the needs, the buyers usually back away from the picture,
leaving an apparent over-supply of production on hand, which
is the excuse for dropping the price of crude oil. When this
is accomplished, the buyers usually move back into the market
to fill up immense storage during the winter months, making
it up into gasoline the following summer. Thus, the small,
independent producer suffers; not only he, but the state of
Montana, the United States government and all landowners
who are royalty owners in these development operations.
Many operators have commented to us that the Cana
dian buyers in Kevin-Sunburst are "backing away" from
crude oil purchase contracts. Heretofore they were wres
tling for contracts. Now, with 32 strings of tools work
ing, they suddenly become cold. They certainly think
that they are going to be able to get cheaper oil and by
the laws of the old army game they are right.
We can appreciate that the Canadian buying companies are
interested in buying oil as cheaply as possible, having no in
terest whatsoever in the resale of gasoline in the United
States; and the facts are that heretofore reductions in the
price of crude oil have not been reflected in the price of gaso
line sold in our local market. In fact, insofar as the producer
knows, there appears to be no relationship between the two
commodities. The Canadian buyers have indicated their de
sire to use from 6,000 to 8,000 barrels daily and have invited
the development of this barrelage. One concern has even built
a pipeline to pipe this oil directly into Canada, which is highly
satisfactory to Montana producers, providing they pay the
Montana producer a fair price.
This big business racket of storing ail has been one of
the most profitable operations in the oil business and the
facts are that they usually pay for their storage every
year, by pushing prices up and down. Perhaps Cut Bank
producers should pay for a little tankage and perhaps
they shouldn't
There was created last year a Montana Oil Conservation
board. This board has devoted its efforts up to this time to
keeping the Montana quota high enough to allow Montana
oil fields to market sufficient oil to supply the domestic and
Canadian market. That allows a big margin. Everyone is
opposed to prorating so long as an operator can sell his oil
at a profit. However, if he is going to have to sell his oil at
a LOSS, wouldn't it be well to avert the possibility of that
In other words, it doesn't take a soothsayer to find out that
the plan of some buyers is to cut the price of north Montana I
oil. If nothing is done about it, we will be selling oil again
for from 5 cents to 10 cents a barrel less than the lifting cost. |
Now that we have a "conservation" board, could it do
more in conserving our natural resources than to regu
late the production of oil so hat it ndtt NOT be sold a
a lossT
Wouldn't it be better to prorate production to actual dc
mand at this time, to make it possible to sell at a profit even
HALF as much oil as we are now producing — as to sell
J *
IIYunck Well Makes
50 Bbl. In 4 Hours
A d "hen Bridges
ONTANA-Headlight Oil company's
Yunck No. 1 NWJ4 SW 1-34
6W, within a few rods qi the first
well in Cut Bank field, is today rated as a
gusher—the first reward of its kind rained
down on the pioneer prospectors of Cut
Bank oil and gas field.
Coming in unexpectedly, the well flowed
out of control for eight minutes and after
! the flow was directed into the tanks it
made 50 barrels in four hours-at the rate
of 300 barrels per day. Thereafter it sud
denly bridged Vs sand apparently clogged
the hole below the casing. It is now being
cleaned out
I The well picked up the sand at 2790 feet
4 o n July 25. There was 1,000,000 cubic
Meet at the top of the sand, this well being
Producers Development syndicate
this week abandoned Its teat on the
EHneraon farm southeast of Cut
Bank «eld, In NW* NW* 29-32
4W, failing to get either oil or gas
In horizons above the Madison lime.
The hole was carried to 2780, the
top of the lime, where water rose
450 feet. No effort was made to
teat the 'Ibreak" in the lime, to
avoid difficulty in plugging. A sand
from 2590 to 2630 which was
dry Is claimed toy some to be the
trua Cut Bank sand, while others
maintain that there was no true
Cut Bank sand present. If there
is 40 feet of Cut Bank sand in this
district, it means that some inter
ruption each as a fault or complete
lensiag ont most have oocured in a
distance of about four miles.
for other In
*%e£ting " th^ilnd^
jwyo., flew where t>« established
Ä**JÜ"!^ n on h«T ïS5üd**tî
the district have been halted for
the present.
The steady procession of
vetana Kevnl-enabnnst opera
tors r et u r nin g to the fold of
«ctts» drillers In that field
rauw known that Cowlklge A
- „ composed of E. B.
Hank" OooUdge. hi* nephew.
are resuming active operations.
a four-year lay-off.
This company recently drilled a
well on the newly acquired 200-acre
Zacbor lease in the eaet end of
KevtiMhuburst and completed a
pumper which was saved from
being a dry hole by the magic of
Henry Ooolidge was formerly pro
duction manager of Hardrock OH
Kevin to apply new method* in
restoring g|d properties and in
la the
new wells. Included
of Ooolidge A Ooolidge
e of production on the
lease In Section 12-24
the one producer has
«But down for more than two
years. The pump Jack will be re
pkwad by a machine to pump It
the water,.
Wnnttasii •• <*M» five)
WE wells are in coarse of completion in Cut Bank oil field
today and seven new locations were announced at the same
time to keep up the tempo of the steady activity.
None of the wells announced this week are part of the 20
well program required by the government as a result of the recent
Indian lease sale Wells most be started on some of these leases
within 30 days and all of the others most be drilling within 30 days.
Two of the new locations are
the vicinity at the Tarrant-Jonee
gusher where no leas than a dozen
well! will result from the finding
of a gusher pool by a well that is
stil making around 200 barrels.
Boy Tarrant started the first
new well In the pool, drilling at
176 feet Friday in SB* SB *
36-34-6W on his State No. 1.
Lon Crumley started moving In
on his Jones No. 1 location, 8E*
SW* 31-3 4-6W.
Other operators who have offset
obligations south and east have not
yet moved.
Aside from the Montana-Head
Hght-Tnnck No. 2 well, there were
no sensations In the field this week.
Texaco-Consolidated Gas, center
16-35-5W was completed July 23
with an initial of 5 million cubic
feet of gas at 2899 feet.
A n no nd-Hntch Inge-Roan t No. 1,
NW* 8E* 10-32-5W was delayed
(by baring sheared a pin, resulting
In another fishing job soon after
drilling out cement. It is drilling
in today at 2920 feet.
.Ann*ml-Hatchings-Matson No. 1,
NW* 8WÎ4 11-34-6W, is 2650 feet.
<*»bb*WJ»«>«rKrr No. 8. SW*
S®* 8 6-16-....W, drilling. 2610.
New Cut Bank Map
Per corrections for your Cut Bank
jPage 2.
may sea
cut Bank, showing
townships 22, 24. 24 and 34, down to and la eluding the
Barmao^running well, also ranges 4. 6 and 6 West. It show* all
wella to date. It will be sent to SOBBORIBBftS upon receipt of
1# cents la stamps. Price to non-subaertber» 14«. Use this
located on the "gas-oil contact," which
furnishes the largest wells in this field.
About 70 rods east is the discovery well
of Cut Bank field. It is being produced
as a gasser, supplying the town of Cut
Bank. It had a small showing of oil but
not in commercial quantities. It was this
^ owing of „ oi ! th ?' th / u <| rilli "? the
" a '"" wel1 "> Sec, 2-34-6W, which was
'he d^ocery o. well
Montaru-Headhgh ,s the operating com
' ,any of the Drumheller mterests-a name
fa ™ us m ! dah .°,™ n '? g h,Sto " y ' . „
"W ,s hea * d .^ J« 1-0 ? 6 Drumhellcr
of Spokane and field operations, including
the natural gas line operation, are in charge
of Dan Drumheller. R. C. Tarrant, who
drilled this well, is heavilly interested in
ithe M ontana -Headlight.
Dakota-Montana- Wink 1er No. 1.
NW* NW* 2 6-3 6-6W, drilling.
Orant- Yunck No. 9, SW* SW*
14-34-6W, cemented 546 feet of 10
ineb easing.
Indian 00-Fee No. 1. SB* 4-24
6W, drilling, 2890, and due in.
Lawlor-Harlan No. I, 8W* SW*
5-33-6W, aet 606 feet of 10-Inch.
Montana-Headllght-W illlaaas Ns.
«A, NE* NB* 11-24-6W, drilling
Montana Power-Hawkiaa No. 1,
C 8W* 17-28-6W. la flatting for two
strings of lost tools on top of the
sand at a depth of 8766.
Nyhagen-Andereon No. 8, NTB
NW* 8W* 3 6-3 6-6W, drilling.
Olive Oil-Matoon No. 1. NW*
NW* 14-S4-4W, drilling, 1976.
Santa Hit*-Whetstone No. A SB*
NE* 27-36-6W, «frilling in at
2778, where 6-inch casing is sat.
Santa-RKa-Whetstone No. 4, SB*
NE* 22-35-6W. set 549 feet of
12 4 -Inch casing.
Tarrant-Oetty No. 8, NW NW*
8E* 2-2 4-6W, drilling, 2100.
Texaco-Htekle No. 4. C SB*
NB* 2-34-6Wl, completed with
OMtlaato ea Pag* Peer)

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