Newspaper Page Text
9SS /^Vonlanaj^Hkdouma I Owned and pabllsbed by the Montane Oil Joamal. a Montana corporation. Address all eemmanlcatloe* to tit first , National Bank Building, Ornat Palls. Montana. O. I. DeSCHON. PnbMsher. SUBSCRIPTION RATES: tt.tt Per Tear la Advance, Canada and Foreign Sabeeriptione |t.tt Per Tear, fl.tt—t Months. Foreign, fl.TI—t Mentha. Published Every Saturday. Entered as Seeend-CIaes Matter Apr« tt. 1*81. at the Poet Office at Greet Falls, Montana, Under Act ef March 1, 1*7*. The llentana Oil aad ifining Journal endeavors to fnenre the boaesty ad trnstwerthiness ef every advertisement it prints and to avoid the publication of all advetisemsnts eentnialng misleading statements or claims. adYbrtibino rates on application A CALL TO THE PEOPLE OF MONTANA The vaults of some 15,000 American banks now contain deposits of nearly $50,000,000,000 and a large part of this idle money is now seeking profitable employment, but investment capital is timid. It must have adequate assurances. New government issues offered at ridiculously low rates, are invariably over-subscribed, largely because there is an abundance of investmeht funds, but a considerable portion of this money can be diverted to develop ment of projects where a much higher yield is possible. With higher prices for gold and silver, Montana's vital need at this time is for outside capital with which to develop its rich virgin mineral wealth, rehabilitate old mining properties, reemploy thousands of idle men, and engender a real mining boom that will spread prosperity thruout the state. This outside capital is now available—ready and waiting to be employed—and it will flow into this state just as soon as it receives the right sort of an invitation. If state and city officials, civic organisations, business and financial leaders, and those prominent in the mining industry will picture the opportuities, voice the need, and give assurances of fair treatment, outside investors will deloge this state with investment fonda FOREIGN SILVER STOCKS SHRINK Happenings in the international silver market have a vital effect on the future of the American mining industry. The Wall Street Journal reports that the American silver purchase program—whereby the United States Treasury periodically buys a certain number of ounces in the world market—is drying up stocks of silver in London, where there used to be a constant supply of the white metal. The United States has bought much silver there, and in the past London has made up its deficits by purchases from China, holder of one of the world's greatest silver stores. However, Chinese bankers are now showing unwillingness to permit additional large amounts of silver to leave their country. During the last two months silver stocks in Shanghai have been stabilized at around 259,000,000 ounces, and the downward trend in the size of these stocks seems to have been checked for the time being. Thus, demand for silver may shortly outrun supply, and the inevitable result of that would be a rise in silver values—some thing that has seemed only a Utopian dream fo ra long time. H that occurs, producers of new silver, as well as holders of existing ^^MLÜtieSj^^ll^ei^he^igh^ofjgrofiperit^ once more. reward for oil well OLYMPIA, W»eh.,—The first parental er ttn to "bring to" an oil well yielding 1,000 barrels er ■tore a day weald receive «100, OOO from the state of Washings trodaoed la the house of repre sentatives today by Representa tive A. K. Edward», Whateem. OnOCH*OOflHCH3HOH8HOHOHSHCHCH5HCH20<HOH6HCH5H(HBCH3HJH5HJHOHBttOWCHWJHOWHW6WOCHOCHCHJO EXPERT BLANKET CLEANING We hams ha Tow to AR cleaning f ef to yon la c We THE IDEAL LAUNDRY A\ OOWW6HOHCH8H5HOHOHOH#<HCHOH#WOHOHOHCHOH9HOHlHOHOHOHDJHWCHJH8HOHCHeWBH9HOH(WOOCHCWOOOO KMMHMhMhMnOH) The City Grows Where Natural Gas Flows Natural Gas is the ideal fuel for domestic, commercial and industrial uses. It affords instant heat, that can be controlled accurately, and directed just where you want it. For cooking, water-heating, incineration, automatic refrigeration and house-heating. Natural Gas cannot bo surpassed. Its convenience, cleatillnesg and efficiency combine to make it the truly economical fuel. A s a c itizen ef the community, whether you are a property owner or not, you will be directly or indirectly benefited by the us of Natural Gas. SMONlSfirl^Efl CO STONE IS TRANSFERRED Forrest R. Stone bas been trans ferred from the Blacfcfeet reserva tion at Browning to Shoshone Juris diction In Wyoming, after 1« year» of service of which Mx yesn as superintendent. SEND A CONTRIBUTION TO THE SUNBURST BADGER Sunburst ANOTHER POME She stood In the street at midnight. As the traffic homeward sped She was very mach struck by the moonlight, I But that's not the reason riie'a dead. | a a a a A Hip Pocket Drama In Five A«*» Time: None of your business. Place; Who cares? Cut: Three of ns and a barkeep. Act. 2 "PiU 'em up again, McGinnis.' Act. 2 "PHIemnpagaln, McGinnis.'' Is Someone 111 In Another Town? TELEPHONE m 8 Was Or Wasn't It Lucky? Sr 1 m Wasn't it lucky that the first well in the north end of Cut Bank field was not the No. 4 Walberger location? A. B. Cobb is the operator who opened up the sensational north pool it was NORTH at that time, although it is near the center of the field today—by drilling his famous Walber ger No. 1. It was a good AVERAGE well. We were delighted when Cobb started his well because we had pre viously purchased some royalty on the Seeba farm, adjoining. ;We were nervous about the Seeba. We thought it too far north and too far east. We hoped that at best the west end of it would be oil land and the east end gas land. So when Cobb's first well was drilling, on a location at the extreme northeast corner of the Seeba farm, we were on the "anxious seat." The Cobb well came in, a good producer. It was immediately offset south, west and southwest, the last being on the Seeba farm. All these wells were good average pro ducers. Montana Power Gas company continued the development of the Seeba farm and as a result our royalty on the Seeba is paying considerably more than ONE HUNDRED PER CENT PER ANNUM on our invest ment. Cobb continued the development of the Walberger lease. He had a good average well on his No, 2. His No. 3 was perhaps the best well in the Cut Bank field. Completed on August 18, 1934, it started off flowing at the rate of 300 barrels per day. It has continued to flow since that time. It has flowed longer than any other well in the field, so far as we know. It was making around 145 barrels per day, still flowing, when we last enquired. At any rate, the Walberger lease is still making in excess of 200 barrels per day, and this No. 8 has hopped np" royalty prices so that it is useless to try to buy royalties in that district for any reasonable prices. Thfen the milch-discussed Castle State well was drilled, offsetting Cobb's east line. The Castle well made 50 barrels initial. A south off i royalty pretty cheaply, doubtless. We might have bought some Ynnck royalty cheaply, also, and many others, had any of us been willing to risk our money in the face of that Cobb failure. At the same time, if we could have read a crystal ball and forseen what the result of drilling would be on the locations we now know as Numbers 1, 2 and 3, also the Yunck and State wells, we could have made a fortune by buying royalties which others would have believed disproven. We would have been willing to wait, even though development were delayed. There are a dozen wells in the field which present the same situation. We are not altering the situation by point ing out these facts. The owner of royalty around a dry hole will invar iably HEDGE through fear that the area is disproven, even in the face of a sand as good as that at the Walber ger No, 4. The royalty investor who can under stand this situation can capitalize it in many places in Cut Bank field. The real money in royalties is made in buying AHEAD OP THE DRILL. With intelligent information the roy alty investor can move out ahead of the drill in Cat Bank field with no great hazard. A hundred and fifty wells give a pretty good picture of the early Cretaceous seacoast over an area of 30 miles. The sand may vary as to porosity, giving large wells in porous spots an small wells in cemented spots and even dry. holes in "islands'' of porosity, but where the sand is present, production may be expected at a ratio of nine to one. What conservative investment, not to mention speculations, offer any such odds for success to an investor f We can point out spots where the lesson of the Walberger No. 4 can be capitalized. We are issuing a plat this week descriptive of a parallel situation. It will be sent to a limited list of our members or to others who especially request it. set drilled by Montana Headlight had an initial of around 140 barrels. Cobb drilled his offset in the southeast corner of his lease and completed a dry hole. It had some oil and is perhaps a small commercial well but to all intents and purposes it is a dry hole. On either side are wells making 140 barrels per day or more, yet he has a 3 or 5-barrel well. That is the hazard of the oil industry in ANY field. However, it goes to show just one convincing thing that should be of value to the royalty investor as well as to the operator: WHERE THE SAND IS PRESENT, A DRY HOLE IS OP NO SIGNIFI CANCE. Had there been no sand, it might mark the edge of the ancient sca coast on which the Cut Bank sand was laid down. But Cobb had the normal sand as did his neighbors east and southeast. This points out an interesting thought : SUPPOSING THAT COBB HAD DRILLED HIS NO. 1 WELL WHERE HIS NO. 4 WELL IS LOCATED. The offsets east and southeast would not have been drilled. His Nos. 1-2-3 would perhaps not have been drilled— for a long time at any rate, would have been the more convinced that we had lost our investment in the Seeba, for the simple reason that PEAR IS THE DOMINANT HUMAN ELEMENT IN THE OIL BUSINESS. We little royalty investors are no different from the big corporations. We are all afraid of a dry hole, un less it happens to be flanked, like the Cobb No. 4, with producers. THEN we all agree. But had that well been oat there a mile and a half away from production, we would have agreed that the north area of Cut Bank was pretty well condemned. What would have been the result? We could have bought Walberger I m m « We a f 1 m Landowners Royalties Co. Box 1225 LANDOWNERS ROYALTIES COMPANY GREAT PALLS. MONTANA Without obligation send me year plat of 2/23/35, Cat Bank field 4 (Yonr Name in Pull) HEAD OFFICE: GREAT FALLS, MONTANA 'T* - Flllopginnia.'* "FUHnM." Act. I 'finis.' a o a a Conductor. I'll have to charge tall fare tor year little brother—he's wearing long pants. Small Brother; Ooeft, sis. yon ride free. o o a o POME Of all the fishes In the seas. My favorite is the bass. He climbs up Into sesrweed trees. And slides down on bis bands and knees. nano I think I've got a flat tire. "I think that makes ns ■ He: She: even. Q O S B Dean; "Don't yon know yon shouldn't play strip poker?" Sweet Toung Thing; "Ok, It's per fectly all right. It's not really gambling. Dean: Sweet Young Thing; see, we always get our clothes back. What?' No, yon ■ a a « a Super-salesmanship ' Customer: 'That chicken I bought yesterday had no wink hone." Batcktr: happy and contented h« had nothin* to with tor." anna "HI* boot Mena* woiWn't tell him, so be flunked täsa exam. naan Capital—Money which the other fellow has. Labor—Getting it rrom him. anno Doctor (inquiring after the boy who has swallowed a half dollar); "How la the boy today?" Norse: "No change yet." LOW PARKS 1« P.r MIL, and LESS! ASK your LOCAL AGENT for LOW FARES to NEARBY POINTS I sr to DISTANT CITIES. EMPIRE BUILDER win be Completely Air-Conditioned for 1935 Sommer Travel lkt*rm tpb _ 5POKAKÎ >QRTi ANU_ m;nn: <•••'0 omm 87ABTNVG DEALERS Who Sell Lao releaf AUTOPUEL HADE IN MONTANA CM the Faying GALLON AGE WOCUDKIOCKODTOOMB ftMCltotjoa «( the prorkrtoa* of the «ntl-imat law« of the United or HetSM and or K. R. A., to pro poMd la a bill introduced in ooa pen by Senator Borah. PIPS UNB LAW OX* AGAIN Thera is before congress s now law, introduced by Senator Borah, presiding for the divorcement of pipeline from production er dis tribution.