Montana oil and mining journal. [volume], May 04, 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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DAILY AVERAGE PRODUCTION
Ww'k Ending April 27, 1040
».H4R.2.AO Dccrwwc 13,800
17,400 Dmcm»
POSTED FIELD PRICES
OL
$ .00
._...* .»0
« 1.10
» 1.10
Kevin-Sunburst
Ponder» .
Cat Bank
Ont Creek_
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«KBIT FALLU, MONTANA. HATUBI) « \\ >|AV, 4, IIMO,
VOLUME 20—NUMBER 7
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PRODUCTION
LAGS BEHIND
OIL MARKET
Montana crude production again
ran behind market demand during
the month of March, according to
the monthly report of the Oil Con
servation Board,
shortage resulting in a drain of
84,198 barrels on storage oil.
the same time, storage oil is at
the production
At
startlingly low levels.
Kevin field produced 47,683 bar
rels less than market , demand in
March—over 1500 barrels per day
short of requirements. Cut Bank
29,812 barrels behind market
ran
demand—nearly 1,000 barrels per
4,000
day. Cat Creek ran over
barrels behind market demand and
Pondera field alone produced .slight
ly more than crude sales.
Kevin production in March was
145,729 barrels while Montana re
finers used 180,938 barrels. It Is
understood that the April refinery
consumption will greatly exceed
that in March, again biting into di
minished stocks of storage oil.
finers ended March with but 313,
034 barrels of storage—less than a
20-day supply.
Cut Bank crude moved Into Wash
Re
ington and Idaho at the rate of
2,600 barrels per day during March
compared with less than 2,000
barrels per day In February. In
creased shipments to Spokane are
expected upon completion of en
largement work now in progress
the plant of the Inland Refining
Co., which will have a capacity of
3,500 barrels by the middle of sum
compared with 2,250 bar
:is
on
mer as
rels per day at present.
Kevin storage Is at its lowest
level in 14 years, with a 53-day
supply, based on the March market
of 6,237 barrels per day. The daily
production of Kevin In
approximately 4,700
Cut Bank had a
average
March
barrels per day.
dally average production of approxi
mately 10,000 barrels and a market
11,000 barrels per day, In
Cut Bank has 619,218 bar
was
from
March.
rels of storage oil—more than halt
of the storage oil in the state, yet
enough for less than 60 days of
March market demand.
average
Crude oil imports from Wyoming
continued about the same In March,
totaling 176,052 barrels. Imports
exceeded exports by about 76,000
barrels.
Mnnuu-WYOMiw
WEEK ENDED APR. 27
MONTANA—
Cut Bank.
Kevin-Sunburst
Border .
Cat Creek.
10610
4760
40
620
Dry Creek.
Pondera .
780
17455
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.
Hidden Dome.
Hudson .
Iron Creek.
Labarge ..
Lost Soldier.
Medicine Bow.
Mahoney .
Mule Creek.
Osage .
Quealy Dome.
Teapot .
Warm Springs-.
Frannle — » .
East Mahoney, Ferris
1200
3545
28390
3645
2540
15130
1930
240
200
60
130
400
10
40
815
1630
60
230
10
1070
1960
765
250
240
600
510
10
70
3550
110
69330
3630
90415
TOTAL... . ...
Total Colorado.
Total Rocky Mt. States
Big West Has Two Wells
Making 200 Bbl. Per Day
Two Others Making 100 Bbl.
Acid applied to the lime in four wells in Kevin field this week
gave two 200-barrel wells and two 100-barrel wells, all pumping and
flowing, bringing to seven the number of recent Kevin completions
which have shown 100 barrels or better. . _
Big West-Ellingson No. 1, NW SE^SW^ 14
35-3W, east offset to the flowing Aronow-Ellin
son No. 3 flowing well, was treated with acid
Sand jumped from 15 barrels per day to 10 barrels
per hour, flowing and pumping.
Big West also treated its Dahlquist No. 16, CSL
NWVjNEVi 28-35-3W, in the high gravity pool,
and this well resumed flowing, starting on a
rampage but settling to around 10 barrels per
hour. It was brought in a natural flowing well
with an initial of 80 barrels but had dropped to
20 barrels before it was acidized. It is a north
offset to the Pulton-Thorapson No. 4, CNL SW J 4
NE Vi 28-35-3W, which is due to get the sand
in the next week or two.
Also in the high gravity pool, Toles-Blumberg
No. 1, NE NEV4NEV4 32-35-3W, a natural 10
harrel well, treated with 1,000 gallons of acid
and began making five barrels per hour of 38
if
Run Pipe At Genou
Thirty feet of Emrick sand has been drilled in the Genoa
wildcat, 45 miles north of Great Falls, this sand having a slight
showing of heavy oil near the top. The hole is being under-reamed
so as to lower rasing to the top of the Madison lime where either
oil or water are expected.
The first well on Genoa had water at the Madison contact and
had oil in the first "break" in the lime. Security Petroleum com
pany, drilling this test, will be prepared to shut off the contact
water, should water be found, or to handle oil production with no
further danger from the caving Emrick sands which delayed dril
ling this week.
The Emrick sands were topped at 3091 and the hole now
bottoms at 2123, believed to be just above the contact. Location
is in center NE14 NE% 23-36N-3B, west of Genou postoffice.
TRIBAL WELL
HAS INITIAL
240 BARRELS
There was rejoicing in the Black
feet Indian tribe this week as a
well on tribal land came In with
an initial of 240 barrels per day.
It is Consolidated Gas-Frary-Tribal
172 No. 2, NW NW % SW l 4 18-32
5W, In the Big Bend pool. It had
its main "pay" in the lower Cut
Bank and had 1300 feet of oil in
the hole when swabbing started.
It swabbed 24 0 barrels the first day
and 116 barrels the second 24 hours.
The Sunburst sand from 2795 to
2836 had a showing of oil; upper
Cut Bank was from 2850 to 2876
and lower Cut Bank from 2876 to
2887 carried the oil in the top nine
feet. It was drilled into the Ellis
from 2887 to 2903 and plugged
back to 2887. Casing was cement
ed at 2860 feet.
The Tribal council is likewise
profiting by the recently completed
Santa Rita-Tribal No. 10. NW NW'/«
NW'4 15-35-6 W. in the Lander
pool. It made an average of 114
barrels per day during the first
10 days on production.
Three wells were completed and
three new wells started in Cut Bank
field this week. One, a rotary well,
is drilled in and casing cemented
but the hole must be bailed to re
move rotary mud before the out
come is known. This is Cobb
Vandemark No. 5, C SB%NB% 35
35-6W, which was completed at
2776 feet. It had Sunburst sand
from 2750 to 2758. the core show
ing light saturation from 2752 to
2758. Upper Cut Bank from 2775
to 2800 had saturation from 2778
to 2786; lower Cut Bank had light
showings from 2800 to 2815, the
Ellis shale, and drilling stopped four
feet in the Ellis. Casing was cement
ed at 2776 and the well will be ball
ed as soon as the cement is drilled
out.
The nearby Cobb-Walberger No.
5. C NE»4SB 1 4 35-35-6W. a 12
barrel well, surprised everyone this
week by starting to flow. Appar
ently the oil rises above the gas
(Continued on Page Five)
HAVRE MUST GO
AHEAD AND FIND
NEW GAS SUPPLY
The city of Havre must in the !
1
next 60 days discover and drill gas i
reserves adequate to supply the |
city for a period of 20 years, as a !
result of failure to arrive at a
I
:
basis of purchase for the existing gas
system. The proposal that the city ■
take over the present plant, agree
ing to purchase its gas from present
owners, Montana-Dakota Utilities
company and Montana Gas corpo
ration, was found Impractical.
The town has a WPA grant 'and
loan on which several extensions
have been obtained but thus far
none has been able to find an ade
quate supply of gas. The utility i
company has offered to reduce gas |
rates two cents per thousand cubic !
feet, extend service to North Havre i
and make extensive repairs to the
present system. If the municipal
plan is dropped.
Drillers have profited from the
municipal plant project, six wildcat
wells having been drilled thus far
in an attempt to find a supply of
gas.
CREW RIGGING UP
TO COMPLETE TEST
BROADVIEW DOME
BILLINGS—E. J. Murray, presi
dent of American Oil Co. and In
terest holder in the Catalans Oil
Co., which is drilling a deep test
on Broadview dome, Is here super
vising completion of the well
which stands at 5129 feet with
Inch casing cemented at 5,000 feet.
Tubing. Xmas tree, gate valve,
swabbing tools and other necessary
equipment is now assembled and
crew has resumed drilling.
It is expected that the showings
In the lower Madison or upper De
vonian lime will be acidized.
7 **
gravity "sweet" crude of better than Cut Bank
quality.
North and west of the Blumberg well. Rimrock
Schmidt No. 6, SW 8EV4NWV4 29-35-3W, a 15
barrel well in natural production, was treated
with acid and it began making five barrels pet
hour but the test was halted by mechanical
troubles. However, it is a short distance fron»
the 300-barrel discovery well of the Rimrock
high gravity pool.
Other large wells of the seven referred to is
the Superior-Haugen No. 3, in C NE Vi NE V 4 11
35-3W, which is still flowing 100 barrels without
acidization; Aronow Ellingson No. 3, NE SWVi
SWV4 14-35-3W, which is flowing 125 barrels
and has been flowing for four months; and the
Coolidge <fe Coolidge-McCurdy No. 2, NE NW 1 /»
NW 1 /» 11-35-3W, which had an initial of 140
barrels.
PUCENAI
ON GASOLINE
BREAKS O0T
A gasoline price war which
brought gasoline down to 20 cents
in Helena and Butte and to 19%
cents in Lewistown is now causing
losses to distributors and refiners,
with no promise of early settle
ment and the further danger of
spreading to other cities. Com
munity stations which have been
selling below the normal structure
for several years were blamed for
the price cuts established by Con
tinental Oil company. The Com
munity station in Butte, established
by Butte business men who protest
ed the price of gasoline, has been
selling approximately 1 % of all the
« a3oIine sold ,n the State of Mon -
tana. A two-ceut cut in Butte was
followed by a three-cent cut in
Helena. A highly competitive tank
car market is said to have cut re
finery quotations a half cent per
gallon in recent months,
Gaslolne prices in Great Falls
were cut one cent by Continental
on Thursday.
SPOKANE PIPELINE
PROJECT ABANDONED
All plans for the construction of
a pipeline from Cut Bank to Spo-*
kane have been abandoned, accord
i ng to statement of D. F. Gersten
berger, general manager of Inland
Refineries at Spokane, made to the
Montana Oil & Mining Journal.
The granting of an 18-cent rate
from Cut Bank to Spokane means
the abandonment of a pipeline pro-j
ject he said
"The Hillyard plant is now op
erating at the rate of 2,000 barrels
of crude daily or eight cars," he
"This can be stepped up to
3,000 barrels as the plant now!
stands and. with some small addi
lions to the cracking unit, can be
increased to 4,000."
The lowered rates, he declared
said.
"means a great stride for the oil
refining industry in Spokane and
the development of the Montana
flelds" and the lowered rail rates
places the Spokane refining Industry
"under new schedule, set up on a
competitive basis with California
producers."
GAS USE INCREASES
>ST. PAUL—People Natural Gas
Co. of Omaha paid (16.128.09 gross
earnings tax to the city on Its
1939 sales to the Ford and Wal
dorf plants, this showing a substan
tial increase In the use of natural
gas last year.
Eastern Montana Gas
Fields To Be Linked Up
By 8-inch Pipe Line
Announcement of a 105-mlle pipeline to connect Bowdoin gas field
with the great 'Baker-Glendive gas field and giving gas service to three
additional north Montana cities, was made this week to the Journal
by K. M. Heskett, president of Montana-Dakota Utilities company.
Mr. Heskett stated that his company has surveys under way for an 8
inch line between Fort Peck and Glendive and that this lino will be
built late In the summer together with branches serving Wolf Point,
Poplar and Circle.
OIL TAX IN
WASHINGTON
HELD VOID
OLYMPIA, Wash.—Washington's
'4-fent-a-gallon tax on fuel oil was
declared unconstitutional by the
supreme court of this state this
week, the court holding that no
legal exemption from tax could be
given to products manufactured in
Washington refineries, and also that
companies which import fuel oil for
their own use, such as railroads,
are not subject to a distributors'
Many distributors and others who
had paid the tax under protest will
receive refunds under the decision,
the sum of (855,211 having been
collected by the state during the
first 11 months under the 1939
law. An attempt by the state to
have the 1935 fuel oil tax law, as
amended by the 1937 act, restored
to full force, also failed, the court
ruling that question was "not In
this case."
The court's decision against the
law was in u case instituted by the
attorney general's office to collect
the '4-rent-a-gallon tax from the
Inland Empire Refineries, Inc., a
Spokane corporation, allegedly due
on distribution of fuel oil.
Purpose of the action was to test
ihe validity of the exemption em
bodied in the law, the state con
tending it was invalid, with the re
sult distributors of locally refined
'uel oil would become subject ts
the tax.
Lower Court Is Upheld.
The lower court hold the law un
constitutional and void, and this
judgment was affirmed by the su
preme court.
In two other opinions handed
down in actions Involving the same
law, the court held the Great North
ern railway and the Weyerhaeuser
Timber company were not distribu
tors under the act and therefore
were not subject to the tax. The
opinions also referred to the refin
eries case in which the act was de
clared unconstitutional.
GASOLINE SALES
SHOW THIRD GAIN
MONTH OF MARCH
;
during March jumped up nearly a
| third as compared with the first
two months of the year, accord
*«8 to compilation from the records
' of the board of equalization at
Helena.
Montana gasoline consumption
Montana gasoline consumption
totaled 9.459.430 gallons in March
I as compared with 6,586,252 gal
Ions in January and 6,001.352 gal
t l° ns In February,
Refinery production was likewise
increased by nearly 3.000,000 gal
tons •*> March. Total yield of
-Montana refineries was 10.264,493
gallons with exports of 3,636.128
'gallons making a net of. 6,628.365
galions sold In the state.
Importers brought in 2.921,633
gallons and exported 568 galions
making net sales of 2,921,065 gal
Ions of Imported gasoline in Mon
tana.
GIVE FAREWELL PARTY
A farewell party was given at
the Ollmont school house In the
Kevin oil fieid for employes of the
California Co. who left Tuesday
for Gretna, La., to live. They are
Mr. and Mrs. Dan MacDonald, Mr.
and Mrs. Park Holmes and Mr. and
Mrs. Roe Raby. Properties of Cali
fornia company were taken over
last week by Arthur Haeh, Pondera
oil operator.
The company's present 8-inch line
extends through Glasgow and south
to Fort Peck and construction of
the southeast extension to Glendivo
will link up the vast reserves of
Bowdoin dome, estimated at more
than a hundred billion cubic feet of
gas, with the Baker-Olendive re
serves which now supply the west
ern half of North and South Dakota
and all of eastern Montana as far
west as Miles City.
Bowdoin dome is said to be the
largest fully enclosed oil and gas
structure on the North American
continent. It has some 30 pro
ducing gas wells which have here
tofore supplied towns and cities
along the "high line" of the Great
Northern. Construction of the Fort
Peck dam necessitated the 8-Inch
line the extension of which will
make available Bowdoin gas for
The project, including new dril
ling on Bowdoin is expected to
Involve an expenditure of uoward
of (1,000,000.
NO. 13 JINX IS
DISPROVEN ON
SWEARS FARM
The theory that a "Number thir
teen" well carries a Jinx failed of
proof in Kevln-Sunburst field this
week when Bcardsiee-Swears No, IS
CEL SEV4NWV« 9-35-2W. came in
a 25-barrel well following acidiza
tion. It had a small showing be
fore It was treated with 500 gal
lons of acid.
Promise of an excellent producer
in the Kevin pool was given by the
Morion-Hhnw-Kllingson No 2 well,
8W NE % NW >4 23-35-3 W. when
It swabbed 35 barrels this week.
Tubing is being run to acidize. It
is a half mile south of the Aronow
and Big West producers on part of
the same farm. With acid it Is ex
pected to make a good producer.
Coolidge & Coolklge-Shaw No. H.
NW NE % NE % 35-36-2 W,
shot twice with charges of 30
quarts of nltro glycerin, and Is
now cleaning out. This firm's
Khaw No, », SE NE *4 NE «4 36-36
2W, is making between 30 and 40
barrels per day. Drilling is in pro
gress on 8tale A No, «. SW NW >4
NW % 36-36-2 W. at 110 feet. State
A No. 7. In NW SW>4 NW % 36
36-2W, is still a location.
Crumley ft Sons-Fryberger No.
was
I». NE NW % S E14 24-35-2W, Is
rigging up while the No. 18, re
cently completed, is 'being put on
production.
Frazer-Smith
Have Showing
Frazer & Hniith-Van Note No. 2.
CNL SW *4 NW »4 30-35-2 W, struck
oil this week in the Madison lime at
1500 to 1539.
Oil rose 500 feet and preparations
are being made to acidize.
Big Wcst-Ellingson No. 2, CWL
SE '4 SW *4 14-36-3W, south of the
No. 1 producer which had an Ini
tial of 10 barrels per hour after
acid, is drilling at 1400 feet. Eight
inch pipe was set at 1025.
Goeddcrtz ft A gen -Goeddertz No.
4. C SW '4 NE *4 16-35-3W, has
run pipe at 1588, ready to drill in.
P« rrent-Holbrook No. I, C SW %
NE »4 2-36-3W. south of the Bor
der field, is waiting for cement to
set, after re-running casing at 1400
feet.
drilling to 1542.
Prevol ft Shea-Government No. 5,
SE NW Vt SW»4 11-35-3W, has been
completed as a gas well and was
plugged back to 1100 feet. It will
provide gas for camp and drilling
use.
Lund-Dahl No. 1 la C SE '4 NW »4
35-35-4W, is drilling out cement
following a "squeeae job" whereby
(Continued on Psg« Four)