, 1923-07-12

ioCdl OH structures.
The Texas Company entered the
oil fields OF Carbon County on the
10th of April for the purpose of
making n thorough test of the
Good-Nutting-Coen holding in the
Lost Solo er and Wertz Dome fields
and operated under an agreement
with these interests which provided
that should The Texas Company
elect TO do so it might purchase a
one halt interest In the holdings in
Lost Soldier and Wcrtz Dome fields.
Last Monday The Texas Company
signed an agreement with the Good
Nutting-Coen interests which trans
ferred to the oil corporation an un-
divided m half interest in the
holdings in the Lost Soldier field and
an interest in the holdings in the
Wortz Dome structure.
The Texas Company. by clecting
to take W. one half interest in the
Lost SOLDIER holdings and an inter
est In the Wertz Dome field agrees
to pay the Good-Nutting-Coen inter
csts S75o,o00 out of 60 per cent OF
the gross production ana when this.
amount is paid 80 per cent of the
net proceeds. The corporation paid
$4,000 as part payment when 1t
entered into the temporary agree
ment last spring,
the holdings acquired and no charge
The Texas Company will develop
viii be made against the Good
huntingdon people for operations
aud development. The company has
also undertaken to drill on the hold
inEs on the Wertz Dome structure
and IL Is believed that either oil or
gas VIII be encountered. In rela-
tton 10 this agreement q ia stated
that the Good-Nuttlng-Coen inter-
ests viii receive % per cent OF the
net proceeds which Is not charged
against the $4,000 they Will receive
from the Lost Soldier holdings.
Already The Texas Company is
preparing to start drilling operations
on the Wertz Dome.
Tho TcNns Company IS also about
ready to spud in on we'll number
three In the Lost Soldier field. At
well No. . the corporation has
reached a depth OF 2GSO feet and
expects to obtain production at
ESQ feet.
on well No. water interfcred
with production this spring owing to
tho fact that not until April was
II cased off properly. However. the
well is now making more than 23O
barrels a day and Is steadily in
crcnsinE It's production. a B1ir OIL
company we'll, an offset TO No. /,
Is making 60 barrels an hour and
II H. expected that this well Will
eventually equal this production.
Article Six, OF the temporary
agreement entered into lust spring
provided as follows should tho Texas
people elect 70 purchase % half in
teros' In the holdings.
THE second party fTho Texas
Company shall have the sole and
exclusive charge Of the development
ana operation OF said oil properties.
Tho second party shall comply with
all the provisions OF the permits.
leases and other instruments undor
which title 20 said properties is held.
and shall develop said oil properties
with reasonable diligence. including
proper offsets. but no off-setting
shall be necessary. 40 far as the first
parties are concerned. ng between
tho tracts aforesaid The second
party agrees 10 produce and market
from the oil properties us rroat q
proportion Of the capacity OF the
wells as II produces and markets oil
INC capacity OF tn" wells on amy
other land II operates ln the same
ncld."
c. W Cocn, a capitalist Of Pasa-
donh, IL president Of tho recalled
Good OF Companios. ~ l. Suttiur |
attorney or san Francisco. Vice
President and General Counsel. and
u Il. Good, OF Rnwlins. Director
\ number or local people are
~ than gEvsH.WH.# |
MFRS ~ a. N,lniNu |