Montana oil and mining journal. [volume], April 20, 1940, Image 1

About Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953

Image provided by: Montana Historical Society; Helena, MT

                
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POSTED FIELD |*RD*JHh
Keiia^ubont .90
1'ondm .,:. . j*o
Æ Cut Bank.—^.y.-. 4 %y —|Ut 4flH
■ Oat Creek ..$1.10 ®
Journal
DAILY AVERAGE PRODUCTION
Week Ending April IS, 1940
W r s S.H5S.SOO Increase I08.H00
li Montana 17,500
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* PER COPY, CANADA 10c
HATI KIHV, APRIL 30, 1040.
GREAT FALLS, MONTANA.
VOLUME 20
•NUMBER 5
HAEH BUYS CALIFORNIA'S KEVIN WELLS
SPOKANE MARKET GROWING
0
INLAND PLANT
ENLARGING TO
RUN 3,000 BBL
A 25-carload train of crude
moving out of Cut Bank on
a west-bound freight train on
Saturday appraised Cut Bank
people of the opening of the
crude oil market of the Inland
Empire to Montana producers.
Effective Saturday, the Great
Northern Railway began hauling
Cut Bank crude to Spokane for 18
cents per hundredweight or approxi
mately 54 cents per 'barrel, as
against a former rate of 22 cents
per hundred or 66 cents per bar
rel.
At the same time, officials of In
land Empire Refining company of
Spokane announced through Spo
kane newspapers
pany's plant at Hlllyard is being
enlarged to double its capacity and
that it will by July be running
3,000 barrels per day as compared
with present runs of between 1,500
and 1,700 barrels per day.
com
An additional crude oil still and
an additional cracking unit have al
ready been ordered and will be de
livered within a short time, mak
ing it possible to have the enlarged
plant on stream during the pres
ent gasoline season. Arrangements
for the enlarged market have been
made, it is understood, as certain
major companies will take part of
their gasoline supply from the Spo
kane plant which can now produce
gasoline for less than the cost
California gasoline shipped in by
"Â'iîSKd*SÆ*-îrw
made the refinery expansion pos-1
sible came as a result of announc- j
ed plans by Inland Empire to build '
a 320-mlie pipeline from Cut Bank
to Spokane. The Interstate Com-,
made possible a rate of 16 cents
per hundredweight, its proponents
claimed. Surveyors who were work
ing on the pipeline route last
week abandonded the project.
merce Commission had refused to
grant a 20-cent rate until it be
came apparent that the railroad was
due to lose all of the crude oil
tonnage, which at the present rate
means an Income to the railroad of
approximately three quarters of a
million dollars per year.
Pipeline construction would have
(Continued on Page Five)
»m-raiNe
WEEK ENDED APD. 13
MONTANA—
Cut Bank.
Kevin-Sunburst
Border .
Cat Creek.
Dry Creek.
Pondera .
10610
4820
40
520
y 780
760
17630
TOTAL.
WYOMING—
Big Muddy.
Garland .
Lance Creek.
Oregon Basin.
Rock River.
Salt Creek.
Wertz .
Badger Basin.
Black Mountain.
Cody Dome.
Cole Creek.
Dallas Derby.
Dewey Dome .
Dutton Creek.
Elk Basin.
Grass Creek, light.
Hamilton Dome....
Hidden Dome..
Hudson .
Iron Creek.
Labrage ..
Lost Soldier.
Medicine Bow.
Mahoney .
Mule Creek.
Osage .
Quealy Dome..
Teapot .
Warm Springs.
Frannle .
East Mahoney, Ferris.
TOTAL....
Total Colorado.
Total Rocky Mt. States...
1180
3305
24500
4400
2550
14380
2450
240
250
60
150
460
10
50
710
1735
250
70
240
30
920
1990
770
280
360
600
600
10
70
1480
110
64210
3900
85640
GENOU WILDCAT DRILLING
TOP OF LIME, SHOWS OIL
Drilling resumed this week at Security Petroleum company's
wildcat well on Genou structure and on Friday was reported to
have a sump covered with oil which had accumulated in the hole
during the winter months coming apparently from the Ellis forma
tion. The crew found 40 feet of cavings in the hole which bottoms
at 2091 feet, with pipe* set at 1987.
The first well on Genou, drilled in 1922, found oil 115 feet
below the top of the Madison lime, at 2310 feet. The Security well,
C NEV4 NE j 4 23-26N-3E, west of the first well, is said to be
checking 100 feet higher structurally. Present hole is believed to
be just above the Emrick sand in the basal Ellis, which occurs in
Bannatyne field 137 feet below the yellow beds, found at 1954 feet
in the Security Petroleum well.
The well quit in black lime last fall, with a showing of oil.
It is expected to reach the top of the lime today (Saturday.)
North Cut Bank Well
Surprises Owners With
Production Of 166 Bbl
ofll-36-6W, a mile northeast of the Tribal pool.
New productive area in the north end of Cut Bank oil field was
brought into prominence this week with the completion of a 166-barrel
producer by The Texas company on its Section 11 unit in C NE V4 SWV4
since this well is located midway
t m
three quarters of a mile distant the
outcome of this well was a distinct
surprise. It had Sunburst sand
from 2895 to 2915 and second
Sunburst from 2927 to 2945 feet.
•both dry; upper Cut Dank sand
from 2955 to 2985 with showings
of oil at 2952 to 2965 and from
2987 to 2985. These showings were
cased off. with pipe cemented at*
2982. The lower Cut Bank sand is
the main pay, from 2986 to 2998
from which oil rose 1600 feet and
it swabbed 166 barrels in 24 hours,
The EIÜ9 was penetrated three
feet, from 299 8
depth,
to 3001, total
The Unit 11 well was one of
three completions reported this
week.
Glacier Production company
brought in a 235- j barrel well on Us
Van Onner farm, in No. 4 Icoation,
C SWV4 SEV4 8-33-5W. east of its
famous No. 1 which had an initial
of 400 barrels per day. The No. 4
had a showing of oil in the Sun
burst sand from 2819 to 2839;
upper Cut Bank from 2840 to
2885; lower Cut Bank from 2885
to 2900, the main pay. Oil roge
2,000 feet in the hole and it
swabbed 235 barrels in 24 hours.
The hole bottoms at 2900.
Glacier Production company's
Bonnet No. 4, C SW »4 SEV4 4
32-6W, Is a completion, making 92
barrels from the lower Cut Bank
sand. Sunburst sand from 3010 to
3030 showed oil; upper Cut Bank
from 3055 to 3078 was dry; lower
Cut Bank from 3078 to 3092
was saturated, and oil rose
1300 feet. The Ellis was penetrated
one foot, to bottom at 3093. Cas
ing was set at 3063.
Four new locations were an
nounced this week.
Glacier Production Co. on April
17 started its Whetstone No. 3,
C SE»4 NWÎ4 8-33-5W and is now
spudding at 95 feet. It is a north
offset to Santa Rita-Jacobson, a
good producer.
Glacier Production-Bonnet No. 5.
has a rig up In C NWV4 SE'4 4
32-5W.
Texaco-State M455 No. 5 in ap
proximate center NE V4 NE V4 16
32-5W, in South Cut Bank, has rig
up. It is 560 feet south of the
north line and 660 feet west of
the east line of the section.
Texuco-Ourran No. 5, C NW'i
SEV4 8-32-5W, in the same pool,
has rig up.
Cohb-Vanclemark No. 5. C S E Vi
NE. »4 35-35-6W spudded this week
with rotary tools and is drilling at
725. It set surface pipe at 270 and
found Colorado shale at 455.
Consolidated Gas - Frary - Tribal
173 No. 3. NW NWV4 NW »4 18
32-5W, is drilling at 2.000 feet.
(Continu«] from Page One)
ALL EYES ON
DEVONIAN TEST
TO THE NORTH
Montana oil operators will this
week watch with interest the coin
ing completion of the Devonian
test in Steveville field, east of Cal
gary, which is being drilled by the
Canadian subsidiary of Standard of
California as a Devonian test, at
a depth of 5,254 feet.
This well had a flow of 65,000,
000 cubic feet of gas In the De
vonian lime, after 'blowing wide
open for several weeks. A 2.800
lb. master gate valve and 4,500
lb. blowout preventer were used lo
shut in the flow which was later
killed by settling a cement plug at
depth. New derrick was erected
and rotary equipment rigged and
the well is drilling on this week in
to the lower Devonian. Rock.pres
sure is estimated over 2,000 pounds.
There is no Montana operator
who is not confident that forma
tions below the Madison lime will
produce oil and gas, when tested,
but the Steveville test, north of the
Sweetgrass Arch and in identical
lime formations, may serve to whet
the desire of some Montana opera
tor to look at the Devonian forma
tions. especially If the Steveville
well gets oil production proportion
ate to the flow of gas. There is
Devonian oil production in Alberta,
on Moose dome, but not in large
enough quantities to inspire De
vonian prospecting in Montana. The
development of Devonian production
is one of the principal factors in
the sensational development of Il
linois oil fields. That a similar de
velopment is in store in Montana,
with the advantage of shallow drill
ing, is generally accepted as a fact
but the state lacks an operator
such as Standard of California
which drilled an 11,000-foot test
in North Dakota and is now drilling
an 8,000-foot test in Alberta.
ROCK HOUNDS IN CHI
Several Montana rock hounds were
in attendance last week at the Am
erican Association of Petroleum
Geologists meeting at Chicago, in
25th annual conclave. Among them
are John Blixt of the Texas com
pany. Cut Bank, C. E. Erdtman of
the U. S. O. S„ who left from Den
ver, Jas. E. Hupp and Jas. H. Mc
Court of Glacier Production com
pany at Cut Bank and O. A. Seager
of the Carter, from Billings.
BIG WEST IS
LUCKY AGAIN
IN KEVIN POOL
The proverbial good luck of Big
Oil company of Kevin held
good again this week as it drilled
in an offset to the Aronow-Kliing
son gusher which has been flowing
continuously for nearly five
months. The Big West well did not
check with the Aronow producer,
structurally, and it did not get as
much
Wes
gas as the gusher, showing
a natural production of around 16
barrels per day. The Big West-El
llngson No. 1 is in NW corner
SE 'i SWV4 14-35-3 W.
The lime was found at 1718,
with two feet of saturation. Drill
ing continued to 1760. oil rising
1200 feet in the hole. Tubing was
run immediately to test and acidize.
The Aronow well had the contact
at 173S and is some 30 feet high
er on surface. The Big West well
checks two feet higher than the
Huso-Ellingson No. 1 well, in
the adjoining 40 acres north of
the Big West and Huso had but 8
barrels natural.
Young- Operators
Have Well Due In
The next well due in is Morion
& Shaw-Ellingson No. 2, SW NE >4
NW*4 23-35-3W which has set cas
ing at 1740 and is drilling in to
day at 1655 feet. It is a half mile
south of the Aronow and Big West
wells. It is owned by two young
lads who have staked everything
they have on the outcome of this
well. It is their initial venture as
partners and they plan on moving
next to a location a quarter mile
north. G & A-Goeddertz No. 2 has
been spotted ln NE NW A4 NW«4;
23-35-3W, offsetting Morton &
Shaw on the west. Big West has
dug sump holes for two additional
wells south of the new^producer.
Sandv Lime Fails i
t> j m * • j !
lo rcespond lo Acid
Pfabe & Engleking applied a 600
gallon shot of acid to their Boyce !
No. 1 well in center NEW NEU I
27-36-2W, on the north slope of j
the field, this week, but it failed to j
take the acid properly. The forma- !
tion is unusual in that a true 40 j
per cent sand is found at the con- j
tact, giving rise to the belief that
some sand wells may be found, far
ther north. This well is a quarter
of a mile southeast of the famous
Sunburst-Boyce gusher which blew
itself into water, but it did not
check with the log of the Boyce
well.
Midway Well Looks
Like Test
In the Midway area, west of the
Rimrock pool, an interesting lime
test is in progress at the Lund
Dahl No. 1 well in center SE'4
X\V l 4 35-35-4W. This well had a
small amount of oil at the contact
and was produced for several
months until water began to over
come the oil. A "squeeez job was
tried and drilling continues on in
to the lime until oil, gas or water
are encountered. It has now reach
ed a depth of 2105 feet, with no
break in the massive lime.
Beanlslean-Swear* No. 13. CEL
SE»4 NW 1 /* 9-35-2W, Is due lo
drill in today, having cemented
pipe at 1627.
(xCt ProdllCCr In
,
I *lSCOVery 1 OOl
Coolfdge & Coolidge-SIiatv No. t»,
SE NE Va NE >4 35-36-2W. is a pro
ducer, swabbing 60 barrels per
day. Oil is coming from the Sun
burst sand from 1494 to 1523.
f'oolldge & 4'oolldge-Shaw \o. 8,
NE Vt NE *4 35-36-2 W, is drilling at
(Continued oh Page Flve>
INTERNATIONAL SETS
NEW RECORD IN MARCH
! International Refining company j
plant at'Sunburst confinu'-s to set j
i new records for throughput, having
run a total of 191,000 barrels dur
ing the month of March. This is an
all-time record and some 10,000
barrels ahead of the previous rec
ord. Ever since the installation of
the new hot oil pump, the heart of
a refinery, the operators have
pointed pridefully to new records
with succeeding months in which
no shut-down time has been neces
sary, The rated capacity of the
plant Is 4,500 barrels per day. In
March It actually ran 6,161 barrels
per day.
■
Conrad Operator Buys
49 Oil and Gas Wells,
1640 Acres Of Leases
Arthur Haeh. Tondent oil ojierator, this week consum
mated the purchase of the proj »orties of the California com
pany in Kevin-Sunburst field, for an unannounced cash
consideration, taking over 47 oil wells, two gas wells and six
ises incorjiorating U>40 acres.
California company, subsidiary of Standard of California,
is retiring from the field after IS years of operations. This
company purchased the Campbell discovery well and surround
ing acreage, in 1921, and subsequently drilled a total of 92
wells at a cost of approximately $750,000.
1 ,
'
ETHYL DECISION
PROVES BOON TO
uniform
to price,
INDEPENDENTS
The recent supreme court deci
sion restraining the Ethyl corpora
tion from enforcing restrictive pro
visions in licenses to oil refinerers
is said by well Informed refiners to
be of tremendous advantage to In
dependent refiners and especially to
topping plants which have here
tofore been unable to market an
ti-knock gasoline through Jobbers
unable to secure Ethyl licenses.
straight run gasoline, the pro
0 j skimming plants, can be
ma de to conform to all (he specifl
cations of Ethyl quality gasoline by
the addition of tetraethyl lead and
said to actually have some ad
vantages over cracked gasolines in
tills regard The sale of leaded gas
oline to price cutters, who usually
handle the output of topping plants.
has been heretofore restricted by
the system of jobber licenses which
the supreme court outlawed.
The Ethyl corporation has ee
tablished and can enforce stand
a rds of leaded gasoline which stan
dards are far above those provided
by state laws. Nationwide adver
Using of Ethyl standards has re
sulted in recognition of
quality wherever Ethyl gasoline is
found, without regard
Hereafter only the refiners must >be
licensed. By authorized sale of the
fuel by refiners to jobbers the pat
ent monopoly over ft is exhaust
ed; the court held
The decision will greatly increase
the use of ethyl gasoline
throughout the United States, re
finers say, since jobbers no longer
need have licenses to handle lead
led gasoline. Of interest lo the In
j dustry in general is one declara
' tion of the supreme court decision:
|
''Agreements for price mainte
1 nanro of articles moving in inter
S ( a te commerce, are, without more,
„„reasonable restraints within the
raea ning of the Sherman Act be
cause they eliminate competition,
(j„jte<l States v. Trenton Potteries
<' 0 073 jr s 392, and agree
me „ ts " which create potential pow
(>r f or SU( . b price maintenance ex
hibitÉ . (1 by jtH actual exertion for
i ba t purpose are in themselves un
l awf ul restraints within the mean
ing of tlie Sherman Act, which Is
not only a prohibition against the
infliction of a particular type of
public injury, but 'a limitation of
rights which may be pushed to
evil consequences and therefore re
strained'."
GASOLINE STOCKS
DUE TO BIG DEMAND
FOR HEATING OILS
The record stocks of gasoline In
the United States today are due not
lo tbf , headlong operations of re
finers seeking to gorge the market
but is due to the record demand
for fuel oils, particularly heating
oils, during the winter of 1939-40,
according to Paul Ryan, president
of National Refining Co. in his
annual report to stockholders,
points out that there is no burden
of crude oil stocks. The demand
for heating oils resulted in serious
shortages in New York and else
where. the number of oil burners
having increased far beyond the
ability of the oil industry lo supply
them.
He
Arthur llaeh, purchaser of the
property, becomes Montana's larg
est Individual operator through this
acquisition, he having 14 producing
wells In Pondera field, giving him
a total of 61 oil wells and two gas
wells which he owns and operates
personally. He also owns control
of Ramona Oil company In the
Rocky Ridge pool in Kevin field,
with three producers. A veteran
oil operator, he was formerly em
ployed by Ohio Oil company, quit
ting the Ohio to take some proper
ties in Kevin field. He sold those
properties together with a refinery
which he had acquired, and pur
chased the producing oil properties
of Ohio Oil company in Pondera oil
field near Conrad.
Few operators knew that the Cali
fornia company properties in Kevin
were for sale and the news of the
purchase caused considerable con
sternation in the north Montana
industry. The California company
at one time had ambitions to se
cure a dominant foothold in Kevin
field with the idea of developing
Its own refinery and outlets. It
has considerable retail distribution
in Montana and , utilizes gasoline
processed under Standard Oil speci
fications in the International Re
fining plant at Sunburst, which
plant purchases the California com
pany's production.
Present production of the Cali
fornia company properties is ap
proximately 125 barrels per day hut
the new owner believes that this
could be put up to between 400 and
500 barrels per day without addi
tional drilling. None of the wells
have been acidized since 1934 and
during the period of low market,
little has been done to Increase the
production.
Included In the properties pur
chased are the following leases:
H. B. O. Abel farm: W14 Sec.
26-35N-2W. 320 acres;
W. E, Smoke farm: Wl4W>i,
E MjSW *4 and SE >4NW «4 Sec. 27
35N-2W, 280 acres;
.1. J. Neuman farm: SW«4 W M
E'-i Sec. 23-35N-2W, 320 acres;
M. A. Neuman farm: NE*4SWt4.
NE >4 . NW >i SE Vi , SE *4 SE »4 Sec.
2 2-3 5N-2W. 320 acres:
E. R. McKee farm: SEti Sec.
24. N Vi NE V* and SW >4 NE *4 Sec.
25-35N-2W and N W «4 SW >4 19
35N-1W, 320 acres:
Lorens Lorenson farm: N Vi NE '/*
Sec. 28-35N-2W. SO acres.
Of the 4 7 wells only 17 wells
have been pumping in recent years,
these wells being capable of produc
ing more than the allowable.
The Galifornia company leases in
volved in this purchase have pro
duced 1.516,287 barrels of oil of a
value of S2.639,436. The yield is
less than 1,000 barrels per acre for
the 1640 acres, the farms being
only sparsely drilled. With the ex
ception of the Lorenson. these leas
es are said to make very little
water, doubtless as a result of the
fact that they were carefully
drilled in and 'bottom water plugged
off by The California company.
Gas sales are not included in
the above figures,
California company has long
since released all of its holdings
on the west side . of the field—
properties which have become val
uable since the coming of acldi
zation but which appeared to be of
little merit after the company had
drilled a number of small produc
ers and dry holes.
The new owner took charge of
the properties on April 15.
I
NO PROGRESS ON COLE BILL
WASHINGTON
whether President Roosevelt's re
cent letters urging oil legislation up
on Cole Subcommittee had improved
changes of enactment of bill now.
Secretary of Interior Icke* said,
"not very much progress" has been
made since then.
Questioned