The Delta independent., 1918-05-10
TO THE STOCKHOLDERS OF
BLACK CANYON OIL q GAS CO

tnat Lne following report De made to
the stockholders: We encountered
granite at 5O7 feet and drilled into 1t
60 feet We have sent samples Of the
rock to the State Bureau Of Mines and
they say 1t is granite. We have taken
this up with the geologists and they
tell us that there is no use Of drilling
further as we cannot find oil or gas
below the granite. Further. that the
granite formation is many OF thous-
ands Of feet deep, 1t would be impos-
sible to drill through it. even though
something might be encountered un-
derneath. We have therefore stopped
drilling as 1t seems unwise to spend
money uselessly. We have drilled far
enough into the granite to satisfy us
that it is not boulder or intrusive
granite. The geologists told US that
cwe only needed to drill feet to deter
mine this.
We have very encouraging reports
ON the gas that we have in the well
now, copy of which is as follows.
"The flow is estimated at close to
million cubic feet per day and is
almost pure carbon dioxide. This flow
is not likely to continue at the present
rate for long period, but / estimate
the flow at minimum rate of 25O, 900
cubic feet per day for fifteen years.
| The carbon dioxide is valuable for
number of economic purposes, e. g..
fas precipitation agent in sugar fac
tories; in the manufacture of carbon
ated waters; in the manufacture of
white lead. and in the casting of steel
as refrigerant. 1t is either com
pressed into steel cylinders or liquified
and kept in thermos bottles like con
tainers. In Europe the source is main
ly mineral springs and wells. but in
this country it is obtained from mag
nestle, the carbonate of magnesium.
The value would not exceed &c per
pound at the we'll. This represents
s2.46 per thousand cubic feet. price
(which is not likely to vary much after
the war 1t must be remembered. how
ever that the initial Investment Will
be by no means small as the gas must
be compressed in small steel cylinders
of which a large number must be kept
on hand, and second that the product
will be put upon a market which is at
present very restricted. The users in
Colorado are the carbonated water com
panies, sugar companies, and possibly
the shale oil companies. Certain
chemical companies could undoubtedly
lluse 1t on a large scale IL they were
assured OF a supply. The bureau OF
the Census shows that in 1914 there
! we're produced in the United States
from 3s establishments carbon diox-
ide to the extent OF 5O.445.779 lbs of
value Of 1890. .6S5, an average value
Iof about &c q pound at the factory.
l'Eghty-five OF this was manufactured
fand consumed east Of the Mississippi.
Assuming your well to produce
250.o00 cubic feet per day. this ~ 81. 40
per thousand represents 100000
OF this $500 at least 70 per cent would
represent manufacturing. transporta.
tion and sales costs and interest. leay.
ing $4,000 a day profits. The process
of manufacture would be simple. The
igas would be passed through a solution
to absorb the trace Of HIS contained
in it and then dried and compressed
to % atmospheres pressure, 400 lbs
liguage pressure. A two stage compress
sor Of so horsepower should perform
this work satisfactorily. The cost OF
of this power and the cost Of contain
ers would represent the major cost of
of the plant. StearnsRogers advises
the use Of steam at gauge pressure
connected TO supply the power and
the use steam at a guage pressure OF
of $50 lbs. per square inch. This would
involve the installment of hundred
horse power boiler. The plant would
then consist of the following units
for which tentative cost is given.
6-inch pipe line and de-watering tanks
1000! 90
Two stage compressor 60 h D. with
special lining and engine II. 600. 90
Washing and drying plant. 100000
Cooling unit--...--.-..-.-.-.......--... 1000 90
100 h. .. boiler 1000. 90
s21. 100000
To this tentative estimate must be
added the cost of buildings. which
will amount to about $1,000. and the
cost Of containers. These containers
are hollow steel shells with powerful
valves. I have inquired for the speci.
fications and cost Of these but there
seems to be no very definite informa.
tion concerning them. The cost seems
TO approximate about $1,000 for fifty
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