Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-04-26
FORM GIGANTIC
TEXAS ME- RGER
JUST ANNOUNCED
Huge Consolidation Expected
to Stabilize at Once the Oil
Conditions in the Burkbur-
nett Field,

Unique in Texas oil history, what
operators declare will mean the stahi-
lization Of conditions in the Burkbm
nett field, is the gigantic merger of
oil interests which IN part comprise
the Nettle- Cruwell Oil company S
holdings in Burkhurnett field, Whole
field No. 1 and Wholefield No ?, and
1000 producers within the "bllltun
dollar Citcle of Burkburnett, the
outer edge of which is three miles
from Electra, according to word re-
ceived in FL Paso Thursday, fvOm
Wichita Falls and which was con-
firmed here by w A. Nettle, one OF
the trustees of the new corporation,
known as the Texas Control Consol-
dated Oil company, says the El naso
Herald.
c. r. Cox, another trustee of the
big merger, is here at present and
will be joined within the next few
days by trustee c. NJ. Crowell. who
has resigned as assistant cashier OF
the American National bank of Wi2h-
tia Falls The three will confer on
the immediate operation of the COM
pany,
Directs S2,OOO,OOO Property.
In total, added to the above men,
toned holdings, the Texas Control
Consolidated Oil company, directs
property worth more than $2,000,0OO,
Among the other properties falling
within the scope of the company are:
Hayden Burk holdings, adjoining the
Big Adams well, which produces APP
proximately 1000 barrels daily; the
Nettle-C rowell lease, 173 feet from the
Marine well, which has returned 1900
per cent of its stockholders; an so
acre lease, with well now drilling,
southeast of Burkburnett townsite;
contract of purchase lease in the Iowa
Park shallow field; 1000 acres in
Donnelly county; LOO acres near
Tucumcari, N. M, and 40 acres IN
Eastland county.
VIII Take Over More Wells.
In the immediate future the Texas
Control will take over producing wells
of other companies and operate them
for the companies on royalty basis.
This, in the opinion of the trustees.
will be the salvation of the small or
medium producers, the owners of
which are unable to bear the expense
of daily sWabbing of the wells. fol-
lowing rotary drilling, and the pro-
duction. of which is considerably re-
tarded for the lack of standardized
ton.
"a peculiar condition" said W. A.
Nettle, exists in the Burkburnett
field which has tended to act some
what as a damper upon increased de-
velopment. That fortunately will be
relieved by such merger AS that
brought about in the Texas Control
company Many companies Of small
capital have been organized the past
year in Burkburnett and Wichita
county, scores of which have secured
production but which have not op-
Grated to their full net earning ca
pacity because of financial limitations.
Standard Equipment.
I'm the first instance the Burkbur-
nett wells are all put down with
rotary drills. After production is Sc
cured the maximum return to the
company can only be secured by
standardizing the equipment. If this
is not done, a daily swabbing expense
of almost a 800 a day is necessary
In the case of a company which IS
securing less than 200 barrels Of Oil
daily, the swabbing charge eats hedV'
lily into the gross returns and eltler
lessons the dividends paid to stock
holders or eliminates the dividends
entirely.
producing companies that have
ample capital can be safeguardad by
the installation of standard equip
ment at an expense of 5000 Cor each
well Obviously this is impossible fer
the undercapitalized company, as 1t
can not meet the expense of standard
equipment.
Maximum, Not Minimum.
Such is the situation in Burkkbur-
nett today, a condition which will be
relieved by such a large combina ton
of capital as the Texas Control This
company purposes to acquire control
of a number of these producers and by
installation of standard equipment en-
able the companies to pay aNnum
rather than minimum dividends.
Agents of Texas Control are in the
field today acquiring producing prop
critics