Arizona republican., 1919-04-11

could hear the roar of the escaping gas charged with oil mile away. About quarter of mile South of this we'll IS the Harris No. l. which came in with 5000 barrel production about March 12th Farther South to the railroad track and about 150 feet from the corner of the Hall lease is the Scott we'll of the Humble Oil Co. which struck the oil sand at about 1700 feet and oil flowing over the casing the day 1 was there. This will, however, be cemented off and drilled down to the average depth of the Ranger sand namely about 3200 feet to secure larger pro- duction, the flow from the sands at 1700 in the Ranger district not being considered seriously About one eighth of mile North of the Hall lease IS the property of Mrs C. U. Connellee. The lease on this 35-acre tract purchased on the 9th inst by the Humble Oil Co., for S80,00O00.
 In my opinion and it was endorsed by the gentle men who accompanied me and examined the prop erty-the Hall lease is extremely valuable as 1t is in the large production area of the Ranger field. also secured option 104 acres near Stephenville in Erath County where test we'll IS being drilled by MT. J. M. Yancy, an oil geologist of wide repu- tation
 In addition 1 secured an option half mile strip about 80 feet wide West of Olden in Eastland Coun ty between the holdings of the Standard Oil Go. and the Gulf Production Go. Wells are being drilled all around this vicinity and several have come in recently.
 My object in selecting these particular pieces of land was tEreefOld.
 First: To secure quick production in proven terri tory which will return substantial dividends to those interested.
 Second: To procure a lease upon ground that could be reasonably expected to bring in large production and make real money. In this connection want to state that the oil obtained at Ranger is about 42o gracity and commands S225 per barrel at the well. The Norwood thus on 15, 900 barrel per day pro- duction is returning S1 100 O000 % per month to the owners and investors.
 Third: To secure leases upon promising acreage in large blocks in partially proven territory where test wells are now being drilled, with the idea of profit ing by the sale of these leases should these wells eventually come in. The possibilities of this phase of the situation can be gauged by the fact that many blocks of acreage that could have been secured with in the year at from S1 % to $500 per has since sold all the way from S10O00 to S100O0.0O and even as high as $50, % per acre
 Returning to Phoenix last Thursday laid my plans before group of representative business men who after mature consideration and most rigid lnves- tigation decided to organize company to take over these interests.
 It was decided that before soliciting any public par tcipation in this enterprise that the group of who became interested would first subscribe sub Stantial fund for the purpose of enabling the pany to proceed with the development of these prop critics to producing stage without outside assist ance
 In other words they first agreed to assume all the risks and obligations thus reversing the usual pro- cess in the formation of similar companies.
 To that end the ARITEX OIL COMPANY with an authorized capital of one million shares of par value of S1 % each was incorporated today. In ask ing permission of the Corporation Commission to fol- low this plan, it was covenanted and agreed that we should furnish as a minimum $40 % cash work ing capital plus our leases, before inviting the pub
 icto subscribe to any of the stock of the corporation At this writing this sum has been paid into the Treas ury of the company in cash and before commencing operations we will probably have not less than S50 OOO00 available