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75 Acres of Montana Elk Basin Leases Bring Record Price of *ifl5,500.
Acre; 1.11 Acres Bring $26^1^&, Acre An Average of $8,139.38 an Establishing new national records for the cash sale of leases on government lands, two major oil companies this week paid $615,500 for the right to drill on 75.62 acres, divided up into seven parcels, on the Montana side of the Elk Basin field. The price paid for drill ing rights was an average of $8,139.38 an acre. The highest bid per acre was $26,216.21, paid by the Stanolind Oil & Gas Co., subsidiary of the Standard Oil Co. of Indiana, for 1.11 acres. The Stanolind and the Ohio Oil Co. were high bidders for all of the leases, with but one going to the Ohio. The Ohio bid $6,013 an acre for a lease of 2*64 acres. Stanolind per-acre bids for the other six leases were: 11.48 acres, $12,050 an acre; 1.11 acres, $26,216.21 an acre; 3.98 acres, $13,269 an acre; 2.92 acres, $13,367 an acre; 2.68 acres, $13,185 an acre, and 38.81 acres, $6,000 an acre. All of the acreage is in Carbon county, in Section 35, Towns' m 9 South, Range 23 East. % * 4 4s PAW DAILY AVERAGE PRODUCTION Rate lor Nov.—BMa. Par Week Boded December 4, IMS "loataao_SUN ^ my A V ■ Total District 4_ 1S4.&0« cJoumal Montana U444 Decrease »AST Wyoming I01.S70 Increase Colorado ISO onlan; I« Volume 23—Number 38 5c Per Copy—Canada, 10c GREAT FALLS, MONTANA, DECEMBER 11, 1043 OHIO TO TEST DRY CREEK TENSLEEP Oil Price Bill Likely to Get Action Monday Unless It becomes entangled in a labyrinth of parliamentary procedure, the Disney bill to provide higher prices for crude oil should be acted upon in some manner by congress Monday. Montana oil men may find an account of what action was taken In evening papers of Monday, or in Tuesday morning papers. Radio newscasts Monday evening may carry some reference to action taken on the bill. Inasmuch as 218 house members (OSattaMt ob Page 4) Acid Again Works Magic, North Field Acid again worked its magic this past week in the Kevln-Sunburst field, making an exceptionally good pumper out of a well which had only a showing of oil at the con Texaco to Wait Spring Test on Utopia Block The Texas company, apparently not excited to any extent, will do nothing more with its discovery well on its East Utopia block until next spring. This well, ln NW SE SE 16-33-4E, was recently completed as a pro ducer at the top of the Madison lime, at 2578 feet In its first 10-day test, it averaged 19 barrels of oil and 10 barrels of water daily. Be cause of the difficulty of obtaining a pumper so far from the Kevln Sunburst field, it has been shut down until spring Elk Basin Suit Involving Millions Looms as Historical Landmark A lawsuit that appears destined to make oil field history, in volving leases valued at hundreds of millions of dollars in the Montana-Wyoming Elk Basin field, moved nearer court action this week. Latest development was the announcement of Wyoming state officials that the state land board has granted an oil and gas lease on 480 acres in the field to the Ohio Oil Co., giving a 10-year lease -—-at Devonian Test Making Hole in Pondera Field Reported by scouts to be "smell ing like crude oil," A. B. Cobb's No. 1 Hirshberg, NW NW* SE% 23 27-4W, in the southwestern comer of the Pondera oil field, this week made hole to 3110 feet in the Dev onian. The well went out of the Devon ian somewhere around 3000 feet, and has had numerous good show ings of oil, cored but not tested. Because it is only a short dis tance from numerous pumpers in the Pondera field and because It is checking higher than these produc ers, it is expected to be watched with increasing interest as more hole is made. GAS SUBSTITUTE In Brazil, where motor fuel is also scarce, 10,000 "gasogene' charcoal-burning devices are in use propelling motor vehicles in the Sao Paulo area, and 2,000 are being used in the Rio de Janeiro district. or Move by Internal Revenue Bureau May Boost Tax on State's Oil Men The bureau of internal revenue intends to increase the tax bur den on the Montana petroleum industry by limiting the amount of depreciation that will be allowed as a deduction in tax returns. This wanting was voiced this week by William B. Finlay, Great Falls certified public accountant, in a statement issued in behalf of the Great Falls Institute of Accountants. Says this announcement; The high bid of the Stanolind for the was nearly five times the previous per-acre high bid, estapiiMeptat Cheyenne Wyo., Aug. 12, when Stanolind paid the top prHte4af*$5,800 an acre for 137Và acres on the Wyoming side of the EB Basflfc field. Total bid for this block was $797,000. At the CheyelhïîlflOe, Stanolind also paid $448,000, or $560 an acre, for an 80-acre Approximately 25 wells are now producing from Ifiprolific Ten sleep horizon in the field and about a dozen more are apw drilling, Companies now holding interests in the field include the Carter Oil Co., subsidiary of the Standard Oil Co. of New Jersey, which bought Minnelusa Oil Co.'s holdings in the field early in November; Stanolind Oil & Gas Co., Yale Petroleum Co. of Billings, Ohio Oil Co., Phillips Petroleum Co., Mackinnie Oil & Drilling Co., Contin entai Oil Co. and Sinclair Oil Corp. By the first of the year, the field is expected to be producing from 20,000 to 25,000 barrels of crude dally. • $1 an acre. Wyoming's claim to the land is disputed by the federal government and under terms of the lease the Ohio Oil Co. has agreed to in demnify the state against any and all claims of the government, state officials said. The company also has waived any claim it might have against Wyoming should the state's title to the land fail, and to bear all expense of litigation to establish title to the land. The government claims title to the section in which the land lies and has warned it might file an accounting suit to recover the value of oil taken from the northwest quarter. Wyoming contends that shortly (Contionad from Pu#» 1) No Big Wells During Week In Cut Bank Though more than two dozen wells were making hole, three of them on top of the pay sand, no completions and consequently no big wells were reported during the (CoattaaoS oa Page S) New Fay Zone Mav Be Opened In Old Field Reportedly a direct result of the discovery of large produc tion in the Tensleep horizon of the Elk Basin field less than 100 miles to the sonth, the Ohio Oil company has made location for a new well in its Dry Creek field in Carbon conaty, with re ported intent to test the Ten sleep. The new well is Ohio-N. P. No. 18. NE% SWi4 3-7S-21E, not too far from previous wells drilled by the company which have been produc ing for many years from the Da kota sand. The Embar is approximately 1550 (CoaUaaei oa Page 4) Ohio-Montana Well in Elk Basin Due In An Ohio Oil Co. well on the Mon tana side of the Elk Basin field this week neared the pay sand, with coring of the Tensleep sand under way in the company's Ohio-Elk 9 No. 14, NE SW SW 35-9S-23E, in Carbon county, at 4639 feet. In im mediate proximity to the well are leases which this week brought new high record prices. In this same area, Ohio-Elk 9 No. 12, NE NW NW 35-9S-23E, is drilling at 1660 feet Rotary Test On Gage Sets Speed Record A It shouldn't take long to find out possibilities of the Gage dome where two rotaries are heading for the pay zone, following completion of a discovery well which pumped 25 barrels dally when first drilled I»