OCR Interpretation


Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, September 22, 1934, Image 1

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

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1934-09-22/ed-1/seq-1/

What is OCR?


Thumbnail for

i
I j ii y
raopw n m
BUX.T A 1
S*f* 18 IBmMe
•|
«
CM
10*908
.'<■;>
UT
«a*
Li j
Tf-rf
%
ontan
■m
It
j-,"' *
en
•I
r
6RMAÎ VALUS, MONTAN*, SATURDAY. 8]
oon, «ùvIM. IM.
98, 1904
VOLUME 14— NUMBER MT.
Curtailment Program
Âwiting Word From
Washington "Hearing
ff
Montana Commision Finds August Crude Sales
Exceeded Production-Price Cut,
If Any, Is Postponed.
N
While waiting for word from the Planning and Coordination
committee of the petroleum administration at Washington, the
Montana Petroleum Conservation Board was this week preparing
for the possible instruction to curtail production in the North
Montana oil fields.
So far as can be determined, the "hearing" in Washington was
attended by Roby Penn of the Texas Pacific Coal 4 Oil company
and a representative of the Ohio Oil company, one or both of
whom were apparently the complainants before the federal ad
ministration The T-P has 500 barrels and the Ohio has 900 barrels
of reported daily over-production for which there is no market.
Secure Market I>a*a *
On the other hand, the Montana
commission made a careful survey
of production during the past week,
securing from the various buyers
of oil their estimated monthly re
quire moists. It was found that there
was no increase In storage in North
Montana oil fields during* the
' months of July and August. Dur
ing three months the amount of
storage actually decreased, so while
the state exceeded its allotment,
more oil was purchased by refiner
ies than actually produced during
the 31-day period.
Haag Onto Pondes 1 »
Another interesting angle was the
reported refusal of Canadian buy
ers to relinquish any Pondera pro
duction. Montana refiners are re
ported to have offered to take up
to 80© barrels of Pondera crude,
which would allow the use of 800
barrels of Ksrln-Suuburst crude.
but the Canadian buyers sefnsed to
take the exchange.
It is reported that the Great
Falls refinery is using all the Pon
dera crude It can secure, and will
pat on a fleet of large tracks to haul
ernde from Kevln-Sunburst, past
Pondera, to supply the local plant.
No Crude For New Plants
located beside the highway be
tween Cut Bank and Shelby is a
600-barrel refinery, newly built,
that is not operating because of lack
of crude.
There Is talk of the construction
of a refinery at Lethbridge to
handle Kevin-Suriburat crude but
the backers are confronted by the
lack of a dependable supply of
crude. The so-called "distress" oil
cannot be contracted for and there
is not enough other oil available
at present to Justify the proposed
investment.
Storage I« Empty.
Principal buyers are reported sit
ting back with empty storage, each
apparently waiting for the other to
cut the price of crude. Ohio OH
company which names the price at
which it is willing to buy Kevln
Con tinned on Pa a» Four)
our menu
mSm
mWI HI. IS
MONTANA-—
Cat Creek.....
Kevln-Sunburst ...._
Pondera____
Cut Bank.
Buckley Border..
Lake Basin..
620
5,220
760
3,380
270
40
TOTAL.
WYOMING—
Big Muddy.
Elk Basin. .
Grass Creek.
Lafbarge . ..
Lauce Creek.
Lost Soldier_
Oregon Basin.
Rock River.
Balt Creek.
Gar lead .
Byron__
Badger Basin.
Oallas-Deiby_
Dutton Creek.
Ferris ..
Frannle .
Oreybali __
Hamilton Dome...
Hudson j_
Midway
Osage_ _ _
Pilot Butte.
Poison Spider_
South Casper ....
Teapot -
Black Mountain
10,290
1,800
65f
..... 1,040
. 1,420
340
- 1,430
- 8.300
. 1,480
..18,060
•-io
390
40
610
70
20
.... 2,220
- 1,210
.... 1410
.... 310
7ID
30
230
800
so
400
TOTAL.
Colorado
-86,680
-- 8,420
Total Rocky Mountain ...60.89«
_**.-.
"SHIPPERS
!
BY HEW RILE
The OH Conservation board of
Montana on September 19 adapted
stripper
new rtiles defining
wells" as follows:
"All wells on any lease having
dally average production of oil per
well on such lease of the certain
amount, or amounts, to-wit:
"Five barrels or less tf the depth
of well, or average depth of wells,
on lease does not exceed 1,750 feet.
"Seven and one-half barrels or
less If the depth of well, or average
depth of well».
1.750 feet and
2,2-50 feet.
"Ten barrels or less If the depth
of well, or average depth of wells,
on lease exceeds 2,250 feet and does
not exceed 2,750 feet.
"Fifteen barrels or less If the
depth of well, or average depth of
wells, on lease exceeds 2,750 feet
and does not average 8.250 feet.
"Twenty barrels or less 1# the
depth of well, or average depth
of wells, on lease exceeds 3.250
feet and does not exceed 4,000 feet.
"Twenty-five barrels or less if
the depth of well, or average depth
of wells, on lease exceeds 4,000
feet.
lease exceeds
does not exceed
"Provided, that unusnal condi
tions in specific Instances may be
reviewed by the board upon applica
tion and the board hereby reserves
the right to determine, prescribe
and define certain wells to be
"stripper wells" regardless of the
above stated general definition of
such wells."
Under this ruling Cat Creek and
Kevln-Sunburst strippers are five
barrels.
Pondera field strippers are 7 %
barrels.
Border Held strippers are 10
barrels.
Cut Bank strippers are 16 barrels.
Big Lake strippers are 20
barrels.
Dry Creek strippers are 26
barrels.
_
«SSE« IS WISHER
Inland OH Index reports that
Henderson
Government No. 1ft well In Elk
Basin, is now making crude oil,
although completed as a 16,000,
00 0-foot gasser. When the gas
flow stopped the hole was cleaned
and it started flowing over the top.
Henderson Producing Co. is a Bil
lings concern.
Producing
company's
CANADIANS ENTER FERGUS
Oanmont Exploration company of
Vancouver. B. C. has filed certifi
cate* of its incorporation In Mon
tana with the announced Intention
of prospectig for oil in Fergus
conny.
OLD MAN WINTER SAYS ICY
"HOWDY" TO THE OIL FIELDS
Th* bert o id pro-rater and drilling cortaHer in tbs world fc
jn«t around the corner."
He is Old
it
\ who demonstrated fas« art. on
day of this
hy
md not «lay long, except in the hill*, bat it served to remind oil
operator* that it is Urn* to bory flow hnee and to get gon barrel*
in reading** to take the moisture out of the oß
rase up, so far la known, although it was below
than 18 hour*. This is the first touch of wint
Ing for
the
it wffl be an early and
there w£fl he little wfctry shout re
•meting new drilling or proratts«
say
Texaco Adds Another
250-Barrel Well To
■ Be aurels
added
Another stellar well was
growing list in Cut Bank field this week
as Texas company's Hinkle Ho. 5 started
off at better than 250 barrels per day.
This well is in NE# NE# 2-34-6W,
in the center of the field, and was drilled
into the sand on Sept. 1. The Cut Bank
sand was found at 2675 feet and drilling
continuai to 2810. Oil rose 2500 feet almost
immediately and it started off swabbing at
at the rate of more than 250 barrels per
to the
day.
Santa Rita's Whetstone No. 4, in the
north end of the field, SE# NE# 22
35-6W, is still swabbing 300 barrels per
ssssa
MECHANICAL DIFFICULTIES
BESET CUT SANA OPERATORS
AND SLOW SOWN COMPLETIONS
a coupl©
liai Hört
of nice producers during the
of fishing jobs and other
reflected the haste of operators to gc*
\ {though Out Bank
past week there was an
before Winter sets in.
(Mr weil« down Co the
In addition to the Texas-Rlnkle
No. 5 well, which tapped the gas
oil area along the last edge of
Bank oil field, providing as
a large well, Charley Grant and as
sociates completed Tanck Nor- 2 *
ln SW 14 SWH. at 2930 feet. They
had sand from 2861 to the bottom
but most of their pay came below
2916. It swabbed 80 barrels dur
ing the first 24 hours and is now
swabbing around 26 barrels.
Consolidated Oes-Bwlng No. 2,
SEVi SEV4 34-3 5-6W, is drilling
near the sand, at 2795.
Oralg-Harper ha* been changed
to Flsk-O'Nell-Harper No. 1, In NE
NE 14 21-8 4-6 W. and Is spudding
at 85.
Cnunley-Jones No. I, NW>4
SE% 31-34-5W, is drilling at 2266
Fulton Gets
Water Shut Off
Fnlbon-Haggerty No. 2, NW
NWK NWK 16-3 4-6W. which had
water break in from the surface
pipe hag shut off the water with
131 sacks of cement and is clean
ing out at 2808 although the bot
tom is at 2951.
Hannah-Poricr-BrHtoa No. 2,
8EK NEK 23-34-6W, is drilling
at 440.
Indian Oil-Rcloboff No, I. NWK
SE% 3-34—6W drilling, 940.
Indian-Wdnklcr No. 2, SE K
SWK 23-856W, is fishing at 2586.
having lost a string of fishing tools
on top of the lost hit.
Jeffrico-Lukens No. 1, SE K
SEK 1 - 33 - 6 W, spudded on Sept 18
and is drilling at 175.
Lawler-Harian No. 2, NW K
VWK 8-33-3 5, Is drilling at 650,
Moatans-Hcadlight-Tuack No. 8.
SW SWK SWK 1-34-6W, is drill
ing at 1850, having made 900 feet
last week.
Montana Power
Operations
Montana Powev-DeCort Unit No. I,
CSH SWK 23-36-5W, is fishing at
2700. They had Jarred the tools
up to 1800 at last reports.
Montana Power-Gain©«
NWK NNBK 6-23-6W, it rigging
No. 1,
up.
Montana Power-Pioneer Unit,
SBK BEK 21-36-5W, j* * comple
tion at 2808 with a total flow of
11,560,000 feet of gas.
Montana PowWgdMsros No. 1,
(OoattoMd va Pas* Ftoa)

l mm ,
due coarse of time, that
one Is going to boat in another
muH.f-I hou«ao<! barrel well, as
FIELD
IAS ROT LOST
ITS OLD "PEP
w
Another 50-barret well came
in this week to prove that
Kevte-Snnbarst field has not
loot; Its "pep", as had been sur
mised by some daring the three
year cessation of drilling In
this field. Operators expect, in
The new producer is the C. C.
Operating Co.-Fryberger No. 1. SE
SBH 8 W% 2 4 - 3 - 6 - 12 W, in the west
central portion of the field. The
well bottoms at 1601 feet.
Crumley's Shaw No. 4. NE%
8W14 85-36-2 W, is a 60-barrel
well, producing from the Sunburst
sand.
Acid was called upon to save
a dry hole on the Seahrook lease
this week on Engleklng-Ptabe No.
6 , NWÎ4 NE% 30-35-2W, not far
from the Frÿberger wells. The
6 had only a showing of oil
at 1624. It was drilled In on Sept.
17 and acid Is being injected today.
Potlatch-Fee No. 4. SE»4 SE%
21-84-1W, being drilled for a gas
supply for the Big West refinery
at Kevin, Is about to drill Into the
sand. Pipe was set at 1155 above
the Sunburst gas sand.
McKoe-Fee No. 8 , NEK SE«4
I9-26-1W. le drilling at 1400.
Imperial Petroleum No. 14,
SWK NEK 19-36-1W, is drilling
at 97«.
Beardslec-Swears NoN. 3, SEK
NWK 9 - 35 - 2 W. 1 * drilling at 860,
where 8 -lncb caalng was set.
Bl-at#te-Haemel No. 3. 8 BK
SBK 8-84-1W, is drilling at 967.
TEXACO BRYS
T-P STATIONS
IN GREAT FALLS
The Texaco company has bought
the four Great Falls filling stations
and other properties of the Comet
Oil company from TexasHPsetftc
Coal A oil company and will take
possoUkloB next Tuesday, Sept. 25.
Th« Comet stations are consid
ered four of the best In Great Fall*
Texa* company was preparing to
erect a station on Its lot at the
southwest corner of Second Street
and First avenue north before the
Oommt deal was consoraated. Since
one of the Comet stations 1> one
block west, at the corner of First
avenue and Park Drive, the Comet
deal wni temnorariily halt the
hulidtUg plans on the Second street
The Texaco company is engaged
in the eomat©'<- cycle ot the oil tn
ifiMSisa*) bo p«s* r>v»> bob
day. It was completed August 26 and has
by far the largest initial production of any
well in the field, having averaged well in
excess of 300 barrels, with every prospect
that it will continue to swab for many
weeks to come.
Montana Power Gas company's more sen
sational gusher, the Vanormer No. 1, in the
south end of the field, SE# SW# 8-33
SW, is still producing around 200 barrels,
pumping and flowing. It started off with
the highest initial of any well in the field.
A flow bean was placed in the bottom but
this soon choked up with paraffin. This
trouble has reduced the initial flow of this
well.
THREE WELLS
DRILLING IN
HILLS AREA
Wild Brothers of Whftlash have
abandoned their Mahoney No. 2
weil CWJL SW* SB* 2S-S7-4B.
Whltlash oil field. They struck
a vein of quicksand which they
were unable to shut out. They
are moving their rig to the location
directly west of the' No. 2 well.
The now location is , SE >*, SW
Sec, 22-27-4®.
This is one of three active wells
in the Hills area. Western Natural
Gas-Bchaffer No. J, 8WK SBÎ6
14-37-4E, is straightening out a
crooked hole at 800 feet. They
were down 1100 feet before the
crook became apparent.
On Fiat Coulee the Hamilton
well Is making slow but steady
progress, underreaming and carry
ing 10-inch casing. The formation
Is so soft that it Is necessary to
drill ahead 20 feet and -then lower
casing. While not contemplated
in the original plan, this is going
to result in giving a much better
hole to care for the first sands,
expected eround 1900 feet, which
may carry oil, gas or water.
Otherwise, the crew would be work
ing in an 8-inch hole, meaning a
second redaction before reaching
the sand, expected at around 2680.
MONTANA HOMESTEAD
IS NOW HIS FORTUNE
The owner of the farm on which
Van Ormer producer In Cut Bank
is located is Frank Van Ormer, a
pioneer resident of Cat Bank whose
home is now in Tracy. Cal. He will
be cashing fancy royalty checks for
the next several years of his life.
He sold half of his royalty on
the chance tbat his farm would not
produce, before the first well was
drilled.
DRY CREEK WELL
DOWN 5881 FEET
Ohio Oil company's Maddox well
on Dry Creek structure, in south
central Montana, is reported at a
depth of 6861 and stfll drilling.
Ohio's Byron-Unlon No. 2 is drill-1
ing at 4716 feet In tbs red beds.
CUT BANK YIELDING 96 PER CENT PER
ANNUM ON $2,000,000 INVESTMENT
Reviewing Cut Bank production figures for the month
of August, the Great Falls Tribune converted the production
figures into dollars, giving the following interesting facts:
The field production of 123,098 barrels at |1.45
barrel, was worth $178,472.
There are 108 producing oil wells, which cost $20,000
apiece.
The average yield is 36.21 barrels of oil per day or
$53.50.
These wells are yielding $19,000 each, every 365 days.
That means that these wells arc returning 96 percent
per annum.
The field is paying 96 percent per annum on the tola!
drilling investment of $2,000,000.
per
GUY CRAIG
AT CUT BANK
Ooy On*,
itnr à't&â
wwV* e U*W|l
veteran oil op
Monday «Aar
on the derrick floor of
his rif in Ont Bank field
Of the

throat..
ailing several months ago he
recently in good
bo had
spans of
watahirur
ssawinf
ding a well
coughing blood
his driller's arms.
Craig was 62 years old and had
been raised on a derrick floor. He
was formely superintendent of Mid
Northern operations in Cat Creek.
Montana's first commercial field,
and was a pioneer in Wyoming oil
development. Before that he was
contractor and superintendent in
California oil fields. It was on his
California lease that the famous
Dubbs cracking patents were worked
out. Certain valves used on a plant
intended to remove water and basic
sediment from crude later became
the basic patents for the Duobe
cracking system in refining.
In Wyoming he operated in the
Draw Creek field in the hectic
hi* crow
„ î
3%£
y.-.fc
e
* ** *. m.
d.yj
.
>•
»
l
li
X ■ . I

w%
i
■■ " ),
-
m *
< m
GUY CRAIG
Veteran oil man who died on derrick
floor of his Out Bank rig.
days of strong-arm rule in Wyom
ing and was later superintendent
of the Kinney-Coastal Oil company
Going with ths Midwest interests,
he was aslsgned to Montana when
Cat Creek came in, as Mid-Northern
superintendent.
With the development of Kevin
Sunbnrst, Craig left the Midwest
and was associated with Charles
Orchard in the early days at the
great North field. In 1926 he re
newed an association started in
Wyoming with Ralph Arnold, and
(Continu«* m Pass Post)

xml | txt