, 1921-06-08

timely. IN view of present financial
stringency. and tho general business
depression. which has now extended
itself In a pronounced way In the Pc
troleum industry. Two postponements
have nlready been made. nj II now
Dszns I certainty that the sale viii
take place on the date set. While
tho placing OF these lands on sa1e at
the present time may not be approved
BY oil men. Il Il nevertheless the last
Opportunity 10 obtain holdings in the
great green oil field. and il Is quite
possible thai the opening of the sale
will see the entry OF a number OF
dark horses II the bidding. T. IS
known hat there are interests winch
have long been anxious 10 obtain n
foothold in the Salt Creek pool. and
It is impossible hat this. the last
chance to obtain virgin territory. will
b passed by without an effort to OBJ
tain some part OF this valuable aero
age. In this connection. the interior
department a placed a check on
monopoiistic bidding by tho provision
that no moro than $40 acres may be
bid in by n individual or company.
To oil men from other states. the
lack OF comment on the coming sale
is little short Of phenomenal. Here
IS an area OF $3.50 acres divided into
Il tracts and located in n field which
has no known equal in the world. The
light gravity. high gasoline oil. with
parafin base. Is the equal of the best
Pennsylvania crude in every respect.
probably, except as regards lubricat-
ing content The yield per well is
high. the present production OF about
4o.o barrels per day figuring out TO
about las barrels per day per well.
with many wells pinched in. The pool
is proven. making every hole a GER
tain well, except possibly or the very
edge of the ncid. The major part OF
the acreage to be put up for bid Hes
within tho ~2.600-foot contou line.
bringing It we'll into the proven area.
and the balance Ia almost all inside
the 2.3oo-foot contour.
Just how high the bidding win go
IL a matter for conjecture. The opin-
In some circles is that the bids
will not each as high a level as many
II Is pointed out that the
high government royalty. 331-3 per
cent on inside tracts and 20 Per lent
the balance. win act as a deterrent
70 strong bids. Tie production condi-
tor the field today Is also consid-
cred IS unfavorsble As the present
pipelines. the onl,N existing outlet, are
already running to rapacity with the
ellis held dowh-teis~ free flow pro-
duction. A new independent s-inch
line Is expected to be constructed this
summer. and this will help out the
situation. to some extent.
The government requirements on
drilling may have a very potent eff
feet on the amounts bid AS matters
stand. drilling is a compulsory
condition. operations to begin within
SIX months after the sigLi.S of the
lease. In view OF over-production in
the country at large. and particular
ly in Salt Greek. this condition may
react against the prices offered for
the leases. Some operators feel that.
II h interior department were to
announce. in advance of the sale. that
drilling would not be compulsory, for
. certain period, more active bidding
would take place. An announcement
OF this nature has been made by the
Interior department to apply on the
of leases in Oklahoma. taking
place at Pawhuska, on June IA. For
reason. a similar announcement
on the Salt Creek sale has not been
forthcoming. although is would be
welcomed by many. It is felt that. II
no suspension of drilling is authcl.zSd