^ POfcTKD mu) PRICW
DAD-y AVERAGE PRODUCTION
Veit Ending November 30. 1040
3,335,050 Decrease 430,350
/ * /
GREAT FALLE, MONTANA, SATURDAY. DM'EM HER. 7. 1040.
5c PER COPY, CANADA lOr
VOLUME 30—NUMBER 87
Twin Fields Petroleum com
pany, financed largely by Great
Falls business and profession
al men, apparently scored an
other success in the high (grav
ity pool fills week. with a
showing of oil in its Thompson
No. « well in MV NW % SE*
28-35-3W. The showing is in
the first "break" in the lime
in which three other wells
nearby have had initial produc
tion of 100 barrels or better.
Finding the lime contact at 1713
dry, the bit picked up its showing
of oil at 1736 to 1742 and drilling
stopped at 1745. At last reports
it was making something over a
bailer of oil an hour, indicating
small commercial production be
Like other large wells In the
area, the oil horizon carried a pe
culiar mud or muck—a talc-like
substance that generally identifies
faulting. A small quantity of this
muck was found in the Fulton Pe
troleum-Thoimpson No. 5 well, a
quarter mile northeast and likewise
in the Pacific Natlonal-Davidson.
while still farther northeast. Dig
West-Dahlquist No. 15 had so
much of this peculiar mud that the
well had to be abandoned, after
having had commercial production.
The quantity of muck in the
Twin Fields well was comparative
ly small. After getting the show
ing. the crew ran the bailer and
brought up crude which tested
36.1 gravity. The second bailer
tested 37.2 gravity. As (bailing con
tinued the gravity of the oil went
up until the last sample ran 38.5
gravity, wthlch Is the average for
the pool although some crude runs
above 40 degrees Be. Decision was
reached to let the well stand ov
night before treating with hy
Drilled on the highest
graphical point in the district, this
well was expected to check high
structurally hut instead was about
12 feet lower than surrounding
wells. There was no explanation, un
less there is further evidence of
faulting which caused this com
pany's No. 3 well to check 30 feet
higher than its direct offset on the
This company's recently com
pleted U. S. No. 1. ln NW NW 1 /*
NW 14 28-35-3W, is making from
15 to 20 barrels per day, slowly
overcoming the large flow of water
which appeared after acidizatlon. It
Is now making only 15 barrels of
water, whereas It made as high
as 150 barrels of fluid initially. It
is expected that the proportion of
(Continued on Page Five)
WEEK ENDED NOV. 30
Cat Creek .
Lake Basin .
Big Muddy .
Lance Creek .
Oregon Basin .
Rcok River .
Salt Creek .
Badger Basin .
Black Mountain ..
Cole Creek .
Dallas Derby .
Elk Basin .
Grass Creek, light
Hidden Dom« .
Lost Soldier .
Medicine Bow .
Mule Creek .
Poison Spider .
Quealy Dome .
Warm Springs ....
Total Rcky Mt. States .... »3910
Stock Issues Under $100,000
Are Exempted By SEC Rule
Re vised rules exempting stock issues of
S100.000 or less from the registration provi
sions of the Securities & Exchange act of
1933 were announced by the SEC at Wash
ington, I). C. this week, bringing new cheer
to the metal mining industry of Montana
which has been at a standstill as a result of
being unable to finance under the stringent
rules of the commission.
Under the new rules, oil company financ
ing is apparently barred, there being no ap
parent provision to cover the financing of
drilling companies. Xo Montanan has ever
been able to figure out a method of oil com
pany financing under SEC rules except
where the issue has been over $100,000, and
that situation is apparently unchanged.
New SEC Rules On Stock "J»™ «1
IS HOLDING AT
50 BBL DAILY
Issues Effective Today
In a substantial revision of Its procedures and its rule« In con
nection with the granting of exemptions under the Securities Act of
1933, the Securities and Exchange Commission announced today that
It had repealed its present rules 200 to 210 inclusive and substituted a
single simplified regulation containing a single integrated exemption
which in muany respects substantially broadens the availability cl the
Section 3 ( b) of the Securities
Act gives the Commission the power
under such rules and regulations!
as It may deem necessary In the
public interest and for the protec
tion of Investors, to exempt from
the registration requirements of
the Act security issues up to and In
cluding $100,000. Heretofore the
Commission has given a total ex
emption on issues up to $30,000.
As to other issues not In excess of
$100,000, an exemption up to new,
has been available only upon vary
ing terms and conditions, such as
the compliance with the laws of the
states in which the securities were
sold, or the use of a prospectus
containing certain specified Informa
heretofore been required, they have
been exaimined in the Registration
Division of the Commission.
Where prospectuses have
The new simplified procedure
does not require the use of a pros
pectus in any case. To avail Itself
of the exemption, a domestic issuer
will now need only to send to the
nearest Regional Office a letter
notifying that Office of its Inten
tion to sell, together with any sel
ling literature it may plan to use.
This letter of notification need con
tain only such information as the
name of the company, the name of
the underwriters, the name of the
issue to be sold and a brief sum
of the intended use of the
proceeds. The issuer can give this
notice, at Its option, either through
informal letter or through the
use of a two-page form Whioh will
be supplied on request for Its con
venience. Where the issuer chooses
to use a prospectus, the regulation
Indicates certain skelton Informa
tion to be included.
A broadened exemption Is avail
able in several important respects
under the new regulation. For ex
ample, the Commission takes a new
position as to future sales of the
Heretofore the Cornmtelon's rules
have been such that, if the offering
part of a larger financial
program. Involving the future sale
of additional securities of the same
class, the exemption was not avail
flcally states that the exemption
is available even If "It is contem
plated after the termination of the
offering an offering of additional se
curities will be made." This will ap
ply In Instances, among others,
where issuers wish to make annual
offering of already outstanding se
curities for such purposes as em
ployees' participation plans. In such
instances, adhere the offering Is not
$100,000 the exemption will
Furthermore, the exemption is
available to Issuers and their
the sattnie issuer.
The new regulation specl
controlling stockholders even though
eadh may wish to offer $100,000
under Regulation within a single
year. Heretofore, in such instance«,
a registration statement has been
The new regulation shifts the
commission's administrative empha
« Continued oa Pag* Five)
LÖLIIH rlCUfUd UN
j Ä «...»..n
\UuONl |!A| FMi|uR
The Journal has received one of
the new 1941 calendars issued by
which are 12 color prints, from
prize winning color photography.
All the 56,000 employes of the com
pany were invited to participate in |
the camera contest and six of the
12 winners were employes of the
White Eagle or mid-western division
while four of the number
The April picture Is a color pho
to taken by B. G. Stevenson of
Great Falls in the A. C. M. wire
mill, showing hot rolling copper
rod, the film (having accurately re
corded the hot copper rod as it
comes froim the furnaces and work
men wearing red and blue shirts
provided added color to the com-j
position. A second prize winning |
contribution by the local Socony-1
Vacuum manager is a color photo ■
of the turbines of Montana Power
company at Rainbow dam.
J. S. Haines of the local office
also won photographic honors by
registering two pictures In this cal
in Last Chance Gulch, near Helena.
the color film having caught the
purple of the distant hills; and the
Interior of the N. P. railway shops.
with red cranes orovldlnz the chief
color re< * cranes provla,ng tne cöler
One striking picture. photo
graphed by G. A. Round, Is an air
plane picture of Boulder Dam. One
scenic view, only, is included In
the 12, photographed by L. E. Han
son, and is a striking color rec
ord of "The Old Guard" In Grand
As a calendar it is a work of
art but the criticism from the view
point of the calmera
that there is no data on timing,
aperature or lease adjustment, ac
companying the several exposures.
Inasmuch as the company is dis
tributing 36,000 copies, the inter
est of other cameramen is doubt
BILLINGS—John E. Sadring
president of Miracle Oil Co., drilling
a test well In Round Butte dome,
on Sec. 22-6S-23E In Carbon county,
reports he has purchased casing,
and is reaming to set it at 2337
feet.Thls test has been in operation
for more than three years, and It
is reported showings of both gas
and oil have been encountered on
the way doom.
XewspajKT and radio advertising is now
allowable, under the new rules and the protec
tion of the public now rests with enforcement
of the laws regarding the use of the mails to
defraud. Copies of all advertisements must
be mailed to the regional offices of the SEC,
not for the purpose of regulating the text
but merely to lx* used as basis for prose
cution. should the issue prove irregular or
Many primary industrial enterprises, here
tofore barred from financing, will lx* made
possible under the new ruling. Most pri
mary mining ventures can be financed with
a stock issue of $100,000 or less.
The text of the SEC release and excerpts
from the new ruling are printed in this issue
of the Journal.
Morton Oil & Refining
■pauy's Morton No. 9 well in the
south end of Kevin-Sunburst oil
field, continued to make 50 barrels
of oil per day during the past
wrefc. after having had an initial
of 100 barrels per day following
acidizatlon. It Is the best well In
the pool and the first demonstra
tion of the effectiveness of acid on
the "high" of the field. This well
gives a diagonal offset to Hardrock
Oil company on its government
lease known as the O'Mally permit.
On this permit Ohio Oil company
drilled its famous "five barrel gush
er". the unexplained enigma of the
Morton pool. It would flow five
barrels but would produce no more
by pumping or swabbing, and was
abandoned. That was a decade be
fore acidizatlon was known,
Mills Has Oil
At lOD Of LlIIIC
Mllls-Government No. 2 well, SE
NE »4 SE % 8-35-2 W. In the Baker
Howling pool, Is reported to have
a showing of oil at the contact and
is drilling on down to the first
"break" In the Madison lime. Af
ter setting casing at 1541 Mills
found the contact from 1630 to
1636 with a showing of oil. He was
drilling at 1639 at last reports. He
I n Qnon
The next completion due in the
field Is Scotland-McNamer No. 4.
CNL NE % SW% 29-35-3W. In the
Rimrock high gravity crude pool.
It Is drilling at 1605 feet.
Kevln-Land Co.-Leach No. 4. C
„ , „„ . .... ....
*? E 4 N f \ 'H -35 ' 3 .'}' 8 8hUt
!dow " at }**?■ with casIng run *
ready , t0 _ „J. *1; ~ „ „
To,es Drl,llnK Co.-Davidson No. 2,
NW SE l 4 NE Vi 28-35-3 W, offset
j ting the Fulton PetroleUm-Thomp
spudding, working daylights.
No. 5. a 100-barrel well, is
Parrent-Hoibrook No. 1, C SWV4
NEV4 2-36-3W. a wildcat west of
Sunburst, Is drilling at 1530 feet,
due to pick up the Kootenai sands
within a day or two.
possibility that the Cut Bank sand
will be found present in this lo
checking on the principal produc
ing contour of the Cut Bank oil
field, according to "Slim" Parrent.
A well two and a half miles south
west of the Parrent well had Cut
I Bank sand containing oil and gas.
Structurally, this well Is
BILLINGS—It 1« reported the
operators on Broadview dome test
are cleaning up machinery and
mending water pipes, preparatory
to making an effort to bring this
wall Into production. Broadview
dome test is located on the NE
corner. NE%SW»4 of Sec. 12-3N
23E Yellowstone county, and has
been standing at 5129 feet for some
time, with casing set at 5,000 feet,
j! 001 ** .
Kaulberg Well Comes In
Another extension to the south was recorded in Cut
lîank field this week with a producer making 250 barrels in
the first 24 hours giving promise of more large producers
in a newly o]x*ned territory a mile south of the Big Bend
Kaulberg' Tribal Xo. I. in center XEJ4
The well is
I9-32-6W. one fourth mile south of A. B. Cobb's Tri
bal Xo. 1, which had an initial of 185 bbl. ]x*r day. These
are tribal leases purchased at tribal sale early last summer,
on which leases onlv three wells have thus far been drilled.
Runs to stills in Montana refin
eries jumped to an all-time record
November high, according to pre
liminary figures on November crude
markets. This follows a decline of
refinery throughput during October
owing to the semi-annual shutdown
of The Texas company's refinery at
The Sunburst plant was in full
operation during the month of No
vember and registered a record run
of 200.000 barrels during the 30
day period. This Is approximately
9.000 barrels greater than any pre
vious month's run. The Increased
capacity Is credited to newly In
stalled heaters and adoption of a
new process which speeds up the
steam still treatment of gasoline.
The plant Is said to have run 8.400
brarels In one 24-hour period dur
ing the month, that being also the
highest run for any 24 hours In
the history of the plant. It Is said
that the plant could be stepped up
to 8,500 barrels per day, without
excessive pressure. If occasion de
Total refinery runs In
were 398.307 barrels as compared
with 506,815 barrels in September
and the November runs are expect
ed to approach the September rec
ord, although November Is usu
ally a light month.
• RUMANIAN PLANTS
BUCHAREST.—Premier Gen. Ion
Antonescu of Rumania decreed to
day the exploration of all oil pipe
lines, pumping statolns, reservoirs
and all real estate on which they
One of the companies hardest hit
by the decree was the Romano Am
ericano, owned by Standard Oil.
It has several hundred thousand
dollars invested In property which
will be expropriated.
A second decree ordered seizure
of all Danube barges, tugs, tank
ers and seagoing ships owned and
used by companies with Jewish
It was pointed out that this will
enable Antonescu to seize American
and British companies' properties
If he wishes.
The companies under the de
crees will be reimbursed over 25
years, being paid by bonds bear
ing 3 per cent Interest.
GETS GAS IN EAGLE
Montana-Dakota Utilities No. 145
well in Cedar Creek field near Ba
ker, drilled to the Eagle sandstone,
at 1733 feet to get its gas produc
tion of 170,000 cubic feet per day.
The Judith River sands were dry.
Location is In NE SEV4 NEV4 10
9N-58E. Company is now complet
ing Us No. 146 ln NE SW»4 NEV4
W. W. Tony has completed a
small gas well at 440 feet, with an
initial of 40,000 cubic feet per day
In Winifred gas field, developed
In recent years by the late Charles
Emmons. Location of the well was
In center north Une NE »4 SW *4 26
23N-17E. on state land.
Tony State No. 1 Is being drilled
In center west line, SW>4 NE >4
j 36-22N-17E. Tony expects to de
jvelop enough gas to supply Wlni
i fred and other nearby towns and
posplbiy eventually get an adequate
isupply for Lewlstown.
entrance of still another drilling
contractor into the role of produc
er the type of success story that
has marked the history of Cut Rank
field. Richard A. Kaulberg. who
worked his way up from roust
about, to driller, to tool pusher, to
contractor now takes his place with
the important producers.
As is usual, Kaulberg Is sharing
who furnished the cash while he
furnished the equipment and the
ability to complete and operate a
producing well. Ills fortunte part
ners are I), J. McGonlgle and J.
P. Bishop of Butte who will share
with Kaulberg the proceeds of this
well which is expected to produce
100 barrels per day or better when
placed on the pump.
This well bad considerable gas
with the oil and the column fluid
came up 2050 feet In the hole in
one hour and 40 minutes after the
Cut Bank was penetrated.
from 2833 to 2840. The swab was
run to 800 feet and the well start
ed to flow and flowed for an hour.
Statistical data on the well fol
lows: Sunburst sand. 2710 to 2740,
and from 2750 to 2760; upper Cut
Bank from 2785 to 2833 with a
shale break from 2814 to 2820 and
a showing of oil at 2795; lower Cut
Bank from 2833 to 2840. the nvaln
2842. Seven-inch casing was cement
ed at 2791.
Kaulberg came to Montana oil
fields from Wyoming in 1926 and
was employed by the Texas-Paci
fic and by Fifty-Six Petroleum. Af
ter the opening of Cut Bank Held
he became tool pusher for Nadeau
Brothers, taking time out to go to
Bellingham. Wash., to drill a wild
cat well as contractor. Returning to
Montana he later took over the Na
deau-Hagerty lease In Section 15
34-6W which he has been operat
ing. while engaging in contracting.
He has drilled several wells for
The Texas coftnpany and others.
When the Blnckfeet Indian sale
was held this year he bid In one
of the tracts. Interested McGonlgle
and Bishop and drilled his first
A. B. Cobb Is now drilling a sec
ond offset to the Kaulberg lease,
located ln SW SW>4 NW V* 19-32
5W. which is drilling at 2680 feet
and doie for completion next week.
Hannah-Porter company has a
tribal lease in this same section
and Is preparing to move a rig as
soon as the Hanlon. Agent-Allotted
181 No, 8. SE 8W'4 NWV4 7-32-5W
Is completed. It Is now drilling at
(Continued on Page Five)
IS CLEANING OUT
BILLINGS—Operators on the Fox
test. Riverton Oil Co. No. 1, locat
ed four miles west of Laurel, Yel
lofotone county, have been clean
ing out hoJe' and otherwise pre
paring to drill deeper, the past
Sidney Armatlge of Billings, an
old time driller and operator, has
been assisting the Riverton opera
tors with their work In cleaning
out. A showing of gas and oil has
DAN MCDONALD IS
DRILLING 2 WELLS
1. lest on Sec. 24 T51N-92W, Torch
light structure, Big Horn County,
Wyoming, were running 15 V4 to.
casing to bottom bole 1080 feet,
last Friday, preparatory to drilling
ahead. This teet Is located a half
mile southeast of the Clifford 8.
Johnson test, started on Torchlight
some months since. Dan McDonald
Is In charge of operations on both
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