East Saginaw courier. (East Saginaw, Mich.) 1859-18??, 1865-11-15

oil Is srom 40 to Oh. A competent
chemist has analysed the Enniskillen
oil with the following result:
Ligb. fluid AZ deg. Baum, or O.794. 10
Heavy fluid, 80 deg Baum, or 0 837 80
Lubricating oil, rich in parfn '.........."- 2
Tar'..' '........' ..''.''''.''.....'' b
Charcoal ........... ...................
Loss ................ .................... z
dI-s 100
COMPARATIVE EXPENSE OF PRODUCING OIL
AT PITHoLE AND OIL SPRINGS.
1t may be interesting to the reader
to be put in possession Of some data
showing the comparative cost of pro-
ducing oil at the wells in Pennsylva-
MIA and those Of Enniskillen. We
will first consider the question of the
relative cost of well to the operator
who works it ut Pithole. The cases
are very rare that he can become the
absolute owner Of a lot under any cir
cumstances. He is compelled to pay
down at the start bonus of from
$1,000 to $4,000 for a spot for one
or more wells, and agreeing to share
with the owner one-third or one
half OF ali II ..he oil that is produced
This stipulation, with the advantages
which it confers, is sometimes called a
"royalty." 1t involves a good deal Of
risk to the lessee, whilst it makes a
very sure investment for the owner.
The cases are very common in Penn
sylvania where large expenses have
been incurred by lessees, and in tho
end losing every dollar of their invest
ment. On the contrary, the cases are
very rare at Oil Springs where there
has been any loss unless through
the grossest mismanagement. Good
oil bearing lands may be bought at
Oil Springs, in fee simple, for from
500 TO $4,000 per acre, the latter
price being paid for lots in localities
where productive wells have been
thoroughly tested. 1t is yet to DO de-
termined whether cheaper lots, more
ivu,vtv hvn, tho territory already tos-
ted, will not be found to yield quite
as abundantly. In fact, in all cases
where experiments have been made
within a mile and a quarter of the
celebrated gum beds, excellent surface
wells have been sunk, and the drill,
wherever it has penetrated the rock to
any considerable extent, has not failed
to develop the rich latent treasures, in
paying quantities. But those pur-
chasing for practical purposes, prefer
TO locate near tho territory already
successfully tested, and, therefore, are
willing to pay more liberal price for
lots in such localities. Our opinion,
founded upon careful enquiry of prac-
teal oil operators from Pennsylvania
and Canada West, is, that the chances
of ultimate success in favor of tho
purchaser at OF near Oil Springs, over
the lessee ut Pithole and its vicinity,
are nearly two to one. This much, at
the outset, before single gallon of
oil is reached.
A word or two In relation 10 tho or
binary expenses of producing oil at
these respective points, after n lease of
q lot is obtained, and the immense ex-
pense Of sinking a well has been in
Cured, which is double the cost of
well here. Wood, at Oil Creek, Pa,
costs on an average, S12 per cord, and
sometimes commands SIG. At Oil
Springs, G. W., it seldom costs over
$3.50 in gold. Here is an immense
saving in an article that enters very
largely into consumption, that is indis-
pensible in working oil wells. The
difference in labor is another iynpor-
tant consideration. AT Pithole com
mon day labors command from 81 90
to IS 90 day, and a competent engi-
neer from IS to So per day; whilst
here, hands are procured for 81 25 in
gold, and engineers for 81. The cost
of working, say a 30 barrel well, in
Guiding oil expenses at Pithole, is
about $50 per day in greenbacks.---
For working well of equal capacity
here will not exceed So in gold. 1t
will be seen that a very wide margin
is bere left in favor of the Canada
wells, and even if well yielding but
one-third less than one ut Hithole, the
former would still have q decided adj
vantage. But let us take two wells
in the respective districts yielding
equal amounts = say so barrels-and
see how the account stands. at
WELL AT PITnoLE YIELDING FIFTY BAR
RRLs PER DAY-oNE-HALP RETAINED
FOR LEASE.
Cost of fuel and labor per day .......... s2I
Cost vi transportation to railroap, IS per
barrel ..... ...s.... ................ III
Government tax 81 per barrel. ......... 2.
Freight by railroad to New lork........ ri
scot
Value of crude oil at New York Oct 25.. sl4 81
Cost OF the oil laid down in New Yorn per
| barrel. .............. sOt
Profit. ................... 80 81
Entire profile on the shipment sl70. This 4
exclusive Of commissions, insurance and interes
on investment.
A WELL At OIL SPRINGS, w, YIELDING
FIFTY BARRELS PER DAY.
Cost Of fuel and labor. ................. % II
Cost Of transportation 70 railroad Zoe per
barrel ............s.. 30 I'll
Cost Of transportation to New York, 81 rs 1917 O
s25e 4
Cost per barrel laid down In New York In
bond .................... IS l
Profits per barrel in bond Tor on board ship
mt New York. ...............' 80 6
N O.. ~ -. -t.-. -