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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, February 23, 1935, Image 4

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

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1935-02-23/ed-1/seq-4/

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9
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.

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