New-York tribune., 1919-06-23
Oil Production
Climbing Rapidly
In Texas Fields
Daily Output Reaches $780,.
600 Bbls.; Price of Wells
Depends ON Willingness of
Buyer to Part With Money
Financial Bureau
Special Correspondence

Financial Bureau
Special Correspondence
AUSTIN, Texas, June 22.-Accord-
ing to statistics compiled on June II
there was being produced in Texas at
that time approximately $4,000 bar
rels of crude petroleum day. This
was new high mark that promises to
be exceeded by several thousand bar
rels day by July l. Of the total
production about 10000 barrels was
light oil from the Central Western
Texas fields and $1,000 barrels of
heavy oil from the Gulf Coast fields.
Conditions in the Gulf Coast fields
are more satisfactory than they were
earlier in the month. Production in
the West Columbia field was aug
mented by flow of 5000 barrels a
day that came from the new we'll of
the Humble Oil and Refining Company.
The Crown Oil and Refining Company
has three wells in that field which are
due to come in soon. 1t plans then to
start extensive development of its
lease holdings in the Hull field
The Magnolia Petroleum Company
and the Sun Company, both subsidi-
aries of the Standard Oil Company of
New Jersey, are meeting with much
success in their development opera
West Texas. Following the bringing
in by the Sun Company of we'll there
of about 5000 barrels a day, the Mag
nolia Petroleum Company struck pay
sand near by at a depth of 3,427 feet
and obtained an initial flow Of 2,70O
barrels a day, and a short distance
further to the south it brought in
we'll of 400 barrels daily output.
What Wells Are Worth
Many stockholders of the various
companies that are operating in the
Central West Texas oil fields would
like to know what q we'll of an out
put of 1000 to 5000 barrels a day
is worth a. a selling proposition. In
quiries Of this nature have been re-
ceived by the different companies.
There is no fixed value for producing
wells. The price that may be paid for
ingness of the purchaser to part with
his money. Another thing that enters
into transactions of this kind is the
amount of leased acreage that goes
with the we'll. While sales have been
made Of producing wells of about 5000
barrels daily flow at a price as high as
100000, the deals also embraced
proved area of as much as go acres.
Generally speaking, producing
we'll Of 5000 barrels daily output in
the Burkburnett field, with enough
acreage around it to set another der
rick or two upon, has market value
of about 100000. Only a few days
ago L. R. Munger. of Dallas, sold
fve-acre lease at Burkburnett field, in
Guiding a producing we'll and another
we'll in process Of drilling, to a syndi-
cate of Eastern men for $550,000. On
account Of the fact that the wells in
the Ranger and other more southern
districts are regarded as having more
potentiality or longer life, because of
the deeper sands from which the oil
comes, than the more shallow wells of
the Burkburnett district, the former
average producing we'll in the Ranger
field is considered easily worth S1,000,-
900. The traffic in wells promises to
become a big feature of the oil busi-
ness in the near future.
New Pipe Line Projected
An expansion of the operations of
the Empire Gas and Fuel Company and
it's allied corporations is expected as
result of the accomplishment of the
new financing plan of those interests
by which much new capital will be
made available. The leaseholdings of
the Empire Gas and Fuel Company in
Texas are so scattered about that the
bringing in of a new oil field almost
anywhere in the state would rebound
to its benefit. 1t not only owns leases
on blocks of land in the proved fields
of Central West Texas, but it is the
holder of large leases in Starr and
Zapata counties, where shallow oil has
been found in commercial quantities.
Deep test wells are now being drilled
by the company in that section. The
Texas Company the Magnolia Petro-
leum Company and other concerns also
are drilling in the same section.
In connection with the oil develop
ment and exploration operations that
are in progress in the lower Rio
that plans have been adopted for the
construction of pipe line from the
fields in the Gulf Coast territory
around Tampico to some point on the
Texas side of the Rio Grande, prob
ably Brownsville, where a large top
ping plant will be built and loading
! facilities installed. 1t is stated that
shis proposed pipe line will do a
common carrier business. Consent of
the Mexican and American govern
ments to cross the Rio Grande with the
pipe line will have to be obtained
The distance from the Tampico OIL
fields to Brownsville is 325 to 400
miles. Although the territory bor-
dering the upper Gulf coast of
Mexico are surface and geological indi-
cations of crude petroleum. Although
American interests have large areas