The New York herald., 1922-10-08
TEAPOT DOME OIL
STOCK is FOR SALE
j. L. Livermore to Offer Shares
of Mammoth Co., Holder Of
tss
Naval Contract. :

The stock of the Mammoth Oil Com
pany with which the United States Cow
ernment recently negotiated contract
for the development of naval oil reserves
in the Teapot Dome district of Wyoming
is to be offered to the public for Sub
scription tomorrow. The offering will
be made by Jesse l.. Livermore, who
has become identified with the company
and it is believed that this is the first
time that Mr.. Livermore ever has been
associated with the public offering of
any stock.
The Mammoth Oil Company con-
tracted with the Government on April Z.
1922, to develop and operate Naval Re-
serve No. 3, consisting of 1921 acres in
the southern portion of the Governments
Naval OIL Reserve in the Teapot Dome
territory. Drilling work already has
been started and is proceeding rapidly.
Nine wells have been struck and an
nouncement was made by the company
last week that a gusher had been
brought in at a depth of 1900 feet pro-
ducing from $1,000 to 10000 barrels a
day.
AS a result of the development prot
ect pipe line probably will be built by
the Sinclair Pipe Line Company. which
is controlled Jointly by the Sinclair Con-
solidated Oil Corporation and the Stand
ard Oil Company OF Indiana. Steel
tankage. of which capacity for $4,000
barrels has been completed. is being con-
structed to take care of 100000 barrels
of oil. The balance of the work is ex-
pected to be completed before the end OF
the current year. Under the terms of
the contract the company agrees to start
drilling twenty wells within six months.
The company also contracted to build
pipe line from the field to Kansas City,
distance of 1000 miles upon the realiz-
alton Of a 10000 barrel a day produce
tion.
Development work during the last two
weeks has been sufficient to exceed the
figure specified, consequently actual
work on the construction of the pipe line
has been begun. The Salt Creek district
is producing $4,000 barrels of oil daily
under purposely restricted output.
Mammoth Oil officials are confident that
level Of 100000 barrels daily cbuld
be realized from the wells now existing.
j. In addition to the twenty wells to be
started under the terms of the contract
offset wells are to be drilled for each
one brought in. Two such wells already
have been completed. giving the COM
pany total of twenty-two, of which
nine are producing oil. one of them at
a depth of only 500 feet three of them
the Shannon sand. Despite this drill
ing Is being pushed to greater depths
for more substantial production. ~
The interest surrounding the Teapot
Dome field of Wyoming is heightened
by the fact that the land has been set
- :" by the Government to assure itself
future supply Of naval oil. Statements
during the recent agitation in Congress
were that the Government could have
sold this oil reserve for more than $780,
600, 900, and further that the lease should
have been sold for at least 500, ,000. 900.
The present lease with the New York
interests provides a percentage of every
barrel of oil produced.
Commenting on the offering of the
shares of the new corporation Mr.. Liver
more pointed out yesterday that geolog-
ical reports indicate the certainty that
the Teapot Dome field will be the in-
portant territory of the future. He as
serted that he anticipated just as large
production in Teapot Dome. and even
longer life. as any oil field development
in the past fifty years.