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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, February 08, 1941, Image 4

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1941-02-08/ed-1/seq-4/

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^Journal
/^Vonlan;
PUeUSHEO WEEKLY
CSTA8LISHCD 1921
03
Ovum «Ad pnoilsked by the Montan* OU donnai, « Montan* oorporatloa
Aidrea* *11 eonunnnieatlona to CIS F trat National Bank BuüMng,
Great Fall*, Montana. O. I. DeßCHON. pnbllaker
SUBSCRIPTION RATES:
ss.ee Par year la Advance — Canada and Foreign Subscription« IS.60.
SI.S6—€ Months. Foreign fl.?6—C Month«
Published Every Saturday.
-itered *a Second Claas Mattar. April IS, 1>21. at the Post Office at
Great Falla, Montana.—Under Act of March 8. 1879.
Per Year.
The Montana Oil A Mining Journal endeavors to Insure tbe honesty
and Irnabworthlnesa of every advertisement it prints and avoid the
publication of all advertisements containing misleading statement*
or claims.
ADVERTISING RATES ON APPLICATION
(L is the blood of the earth flowing through for
tune's field only to enrich the courageous. It
sometimes rewards even the non-thinking business
slacker, but it nez'er lifts the burden from the back of a
business cozvard. Its phis marks of success generally
go to those who combine some degree of thought with
action
0
Montana Gas Yield Gave
State $1,325,000 In '39
Natural gas consumption in the
United States in 1939 increased 8
percent over 1938, according to a
report just issued by the U. S.
Bureau of Mines. The value of
natural gas at the wells was 4.9
cents, the same as in 1938. The
values at points of con
sumption was 21.6 cents; average
price for domestic and commercial
consumption was 67.9 cents, com
pared with 68.3 cents In 1938,
The average value cf industrial gas
other than field and carbon black
declined .2 cents to 16.6 cents in
1939.
average
9,602,850 domestic
and commercial consumers, an in
crease of 338,190 over 1938.
average amount of gas used per
consumer In 1939 was 53,056 cubic
feet compared with 52,033 cubic
feet in 1938.
There were 2,14 5 gas 'wells drill
ed during 19 39 compared with
2,236 drilled in 1938.
In Montana the 1939 consump
tion was 23,178 million cubic feet,
with an average value of 4.5 cents
per thousand cubic feet. The av
erage value at points of consump
tion was 28 cents per thousand.
There are 45,000 domestic and com
mercial consumers in Montana who
consumed 14,721 million cubic
feet of an average value at points
of consumption of 40.2 cents.
Field use of gas totaled 1,303
million cubic feet of a value of 7?
cents per thousand,
used 920 million cubic feet; elec
tric power plants used 10,774 mil
lion cubic feet and other industrial
uses totaled 7,602 million cubic
feet.
There were
The
Refineries
Montana gas used in 1939 was
valued at points ot consumption
at «1,325.000.
Montana exported 1,535 million
cubic feet of gas to North Dakota
and 3,524 million cubic feet to
South Dakota, a total of 5.059 mil
lion cubic feet of exports.
Wyoming delivered 1.515 million
cubic feet of gas into Billings.
DOUGLAS WILSON, FERRIS & CO.
CERTIFIED PUBLIC ACCOUNTANTS
Members of
AMERICAN INSTITUTE OF
ACCOUNTANTS
OIL—MINING—RANCHING
GENERAL ACCOUNTING—BUSINESS AND
TAX COUNSELORS
with
GRIZZLY
GASOLINE
Dubhs-Cmcked
The West's most sensational gasoline
. . . quicker starting, more power,
better performance, cleaner motor,
more mileage.
NORTHWEST REFINING CO.
CUT BANK, MONTANA
DAKOTA LEASING IS
STILL IS PROGRESS
The Bowman Pioneer of Bow
mad, N. D. reports that there is
continued leasing activity in south
eastern Montana and tbe western
Dakotas, with lease men working
on titles in th e courthouses at Bak
er, Bowman and Buffalo. Abstrac
tors are working on titles "and all
together there is an air of activity
which spells something."
"Rumors are current about deep
well drilling being resumed on thg
Little Beaver dome of the Cedar
Creek anticline where the Montana
Dakota Utilities Co. found oil in
two wells drilled in 1935 and 1936.
These two wells are gbout 17 miles
southwest of Mamouth and just
across the Montana state line from
the western Bowman county line.
This proven oil bearing area was
not developed for want of a mar
ket.
"While this is going on the Mon- ■
tana-Dakota Utilities Co. continues
to drill gas wells in anticipation of
Hie building of a pipeline to Fargo
and the Red River valley in 1941." i
SEMI A CONTRIBUTION To
THE SUNBURST BADGER
TANKS, OIL AND
GAS SEPARATORS
ERECTING AN» RESETTING
CONNOR TANK COMPANY
(Matrlbotor In Rocky Mountain 8 to tea
»( the products ot
I
BLACK, SIVALLS & BRYSON
(INCORPORATED)
Powell :
Phone 11«
i
Onopeei
K14S ■ TeUowstOM
Phone «47
Ont Batmki
1
I'hone 1»*
OIL AND GAS WELLS IN MONTANA
December 31, 1M0
STATEMENT COMPILED BY OIL CON8EEVATION BOAED OF MONTANA.
—WELLS COMPLETED DURING TEAK 1940—
■*
3
a
c
:
%
■u St
ca a
c
n
»
?
tm
ûe
i sl
hi
m
l
=
S =
ft, p —
si |î
«35*
5
es
ff
c
a .
Wells Producing or Rbnt-ln
Dec. 81, 194«
»
?
-8
*2

*
tf 5
:
Oh
Oil
Total
Wells
5
h
Oil Well« Qsb Wells
Well«
Wells
Border ....
Bowdoln ....
Bowen ..
Oat Creek....
Cedar Creek.,.
Cut Bank...
I >ry Creek.
Elk Banin (Montana).
Frannle (Montana)_
Kevin-Huo hurst ..
Cake Basin__
Pondera __
Soap Creek...
Sweet Kraus Hills.....
Miscellaneous .
TOTALS ...
0.
0—.
0
0
»
0
3..
0.
0.
12
12
0.
14..
. 14.....
. 3—
. 0.
. « .
.106.
. 0.
0
0
. 10 .
87.
... 0 ..
0
.
0
0.
.... 3
0
0
!
0 ..
11
0.
u
"
0.
0.
0.o
118
«...
"
I'M
l.ui
0.
a.
o
o
1. 0
.XM
2
166 .
.89.
6 ...
10 .
536
_14...
. 0 ...
83..
o.
•Vit
i-iT
0
0
0.
«
1
0.
a
o
14.
0...
0.
. 0
20
0 ...
0.
.. 0.
0.
ao
20 -
L.
i.
0.
0.
I'
1
0.
0.
II
1
!..
»...
.00.
8
951
;
.180.
...11
.18.
3. 1,413
1,227
. 0
«...
0
6.
2
- 0 . ..
. 0 .
2 .
- 4
7
1
1.
0
I'
150
0.
0.
0.
I r -S
138
0.
... 0
. 0_
0
0.
0.
0
... 0 .
0
2 .
0
1.
If!
1
«
0
8
0.
21
10 .
0.
S
.... 84—
23
11 ...
0
0
. 0.
84
ooi. 1,792
.2,134.
2H7.157 .43.
- 37...
. 61 .
.a:.
.r...
. 2,735.
Sunburst
^^klbdA^tr
/
A.
THE "WISE OLD DRAKES
99
Why do the ducks fly north when they
company—planned to drill a second well.
Then came the reversals in the oil In
dustry and the plan was abandoned,
after the payment of a large sum of
money In rentals. That structure con
tains oil. Acidlzation might have made
well out of the T.-P, test, which was
drilled before acidlzation was known.
There may be another Steveville field
there at Muddy Creek. It will take one
or more additional wells and a few
hundred gallons of hydrochloric acid to
prove our disprove it, at a drilling depth
of ONE FIFTH the total depth of any
well to be drilled in the Missouri river
basin.
Now they are coming back. Our daily
mails reflect this trend. The visitors to
our office conclusively tell the story*
We have had among our callers in recent
weeks some of those who were smart
enough to get out at the right time and
who are coming back in. All these years
they have been absorbing the news. They
know all of the developments and are
now ready to capitalize them.
The leasing campaign In the Missouri
River basin, including Eastern Montana,
Is the greatest "play" of Its kind In all
time. Practically every Important Mld
rontlnent operator Is in the Dakotas'
either with scouts, lease men or geologi
cal-geophysical crews. Never before has
there been an oll-less territory so com
pletely and thoroughly worked,
now they are beginning to move over into
> Ion tana. Some of them appear to be
surprised to learn that there Is any oil
In Montana.. They are quite like small
beys who run to the down-town comer
where the band is playing. The loud
notes of the Missouri river basin band
has reached the ears of every oil mafl
in the nation. The leasing of millions
of acres In the Dakotas Is just the be
ginning of what Is going to happen In
this area.
MONTANA IS IN THE TREND OF
IMPORTANT EVENTS.
Capital knows that in this national
crisis there is no basic industry
more stable than the oil Industry.
The oil Industry is starting in at
"rock bottom'' with prices the low
est since the depression. The price
of crade and the price of refined
products can go only one way and
that Is UPWARD.
There are few other commodities In
that position. For that reason, capital
is inclined to alight on something that
ts stabilized with or without war. If
war conies, the principal sinew of war
will be PETROLEUM. Prices are so low
that they cam go no lower, so the oil
industry is one In which an upward
trend Is certain.
Apply the national situation to
Montana and it is apparent that the
greatest opportunities will be found in this
sparsely developed area where the oil
and gas are KNOWN to be present* Op
portunities by the score are available
here in Montana. As an example, a
landowner on Mnddy Creek structure was
In the office Wednesday', Tie having
caught that "something" that Is in the
air. He wanted to find someone to re
drlll that structure which was mapped
by some of the best geologists who ever
worked northern Montana. A well was
drilled, the structure proven and the
well STRUCK OIL in the Madison lime.
The showing was sufficient so that the
company—the Texas-Pacific Coal & Oil
do?
None knows the answer. They just
seem to KNOW the right time.
There are some people who have that
same instinct as regards business,
never move at the wrong time. As the
ducks sense the right time to fly north,
so do certain people sense the right
time to go into the oil business or to
get out of the oil business, or the stock
market or other enterprise.
We know when we see the dogwood
tree budding that there will be no more
killing frosts: that spring Is at hand.
The dogwood tree Is not fooled by mid
winter warm weather. How it knows
we do not know.
All we know Is that the ducks are
not wrong and the dogwood tree Is not
wrong
with far greater ability than the ducks
and the dogwood trees.
They
i
m
i
~
There are a dozen situations snch as .
that at Muddy Creek here in Montana,
waiting for operators who liave enough
money to take advantage of them, with
(he pioneering costs all paid.
F::
And
Ü
The "wise old drakes" of the oil In
dustry are coming back In.
not come if they did n6t~ sense that an
other big "play" Is at hand.
"hunch" or "instinct"—whatever It may
lx—-confirms our stolid reasoning.
1
von though we credit humans
They would
Üi
Their
Accordingly, we know with equal cer
tainty when we see certain people m ove
in the oil business that it is the RIGHT
time. We doubt tliat it would do any
good to ask them WHY. They simply
do (he right thing.
Some people we know who have stead
fastly stayed out of the oil business—
old-time operators and investors—ever
since the depression days, are now re
turning to the oil business.
It Is not the wrong time for a man
(o have q structure leased up.
g
£
It Is not the wrong time for a man
to move in ahead of the drill and buy up
«fll the low-priced landowner's royalties
he can possibly afford,
royalty in Kevin field this week in the
midst of the new leasing activity at 70
cents- an acre point. That Is, this tract
must produce 70 barrels of »1 oil per
acre to pay ont. For each »700 worth
of yield per acre this royalty will pay
ONE HUNDRED PERCENT. Any time
a man can buy royalty at this price
within tbe 1800-foot contours of Kcvln
Snnburst oil and gas field, he Is indeed
foolish to buy wildcat royalties at any
price.
It Is true that 70 cent royalties are
We admit that
However, we
are buying royalties at lower prices
today titan at any time since the de
pression. The uptrend is coming as
eertalnly as new development is com
ing, and of that there Is no doubt. Six
months from now we confidently expect
to pay ,100% more for royalties than
we are paying today.
We cannot explain why on a pre
determined day the swallows come hack
to Capestrano, but we can reason why
an Investor would at this time buy bar- __
gain price royalties In the trend of de
velopinent
Those interested In making a study of
royalty Investment possibilities of Mon
tana are Invited to write for current
publications and formal offering sheets
Ü
We secured a
s
'tough
sledding" in the oil business In Montana.
No new oil fields have been discovered
since then. There has been no outside
money available for development. Many
of the WISER ones have steadfastly
stayed out. Certainly they did not know
tliat the Cut Rank field would take
away the Kevin field market, back In
1988. Certainly they did not know that
Turner Valley was going to develop, de
priving Montana of Its Canadian market,
leaving Montana with virtually no mar
ket. although It is true that some men
sensed part of this and fortified them
selves by making investments In refinery
outlets for their crude.
These wary "ducks" of the oil busi
ness have steadfastly stayed ont, despite
the development of acidlzation, whereby
any showing of oil in the Ume may ho
converted into commercial production.
They have stayed out despite the de
finite knowledge that modern tools have
been perfected which overcome the haz
ards of drilling to deeper horizons. They
have disregarded the fact that Devonian
and other known oil horizons can be
easily reached by slightly deepening
present producing wells thro ugh ont Mon
tana, for the reason that THE TIME
WAS NOT RIGHT.
Since 1988 there has been
g
not the usual thing,
is an exceptional bargain.
P-'
LANDOWNERS ROYAI/TIB8 COMPANY.
Great Falls, Montana.
Landowners
Royalties Co.
Box 1225
Without obligation please send me current publications j
and offering sheets.
:
i
i
(Your Nams In Full)
HEAD OFFICE:
GREAT FALLS. MONTANA
"That is a pretty dress you have
on."
"Yes, I wear It only to teas,"
"Whom?"
A party of Scots decided to make
a trip to London, and when they
assembled at the station it
found that they numbered 13.
Not wishing to tempt Providence
they decided to toss a coin to see
who would stay behind.
Unfortunately, the coin fell be
neath the platform and they all
missed the train.
was
"Look at Mary. Isn't she dolled
up! I understand she bought that
dress on the Installment plan."
"I suppose that is the first In
stallment she Is wearing now."
A man walked into Roibert Rip
ley's office, took off his hat, and
four tulips were growing out of his
head. He bowed to the reception
ist, and the tulips waved In the
wind. 'T want to see Robert Rip
ley," he said.
Receptionist: "And what do you
want to see him about?"
• •
"As I understand the case,"
said his honor, "you and your
husband bad a drunken alterca
tion and you were kicked in the
ensuing rumpus."
"No, sah, Jedge," replied Mandy.
"Ah was kicked In de stummick."
• • • • •
Oilman: Have you had ÿooir
dinner?
, 2nd Oil Man; Not a drolp.
At a fashionable restaurant dur
ing the Christmas holidays, a girl
had Just finished luncheon and era«
preparing to light a cigarette when
a waiter showed an elderly lady to
her table.
Newcomer (acidly): "I do hope
you won't mind me eating whllat
you are smoking?''
Girl (readily): "Not at all, so
long as I am able to hear the
orchestra."
• • •
"Doctor what can you say to a
girl who's so scary she jumps
into the nearest man's arms every
time she's frightened?"
Doctor: "Boo!"
• • •
A Scot from Aberdeen is put
ting off buying an atlas until affairs
look a little more settled.

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