The circle banner. [volume] (Circle, Mont.) 1914-1939, 1924-10-31
SAYS $50 WELLS TO
BE DRILLED IN THE.
NORTH, NEXT YEAR
PLATT SAYS BIG COMPANIES TO
PROTECT LEASES, MUST
DRILL MANY WELLS
Predicts That Looked for Raise in
Price of Crude VIII Result In
Unprecedented Activity In More
Favorable Sections Sunburst Field

The year 1925 will see tremen-
dous drilling activity in Kelvin
Sunburst field in the opinion of
Fred G. Platt, Il. NJ, of the North
ern Oil Information bureau. Dis
cussing the situation in one of his
recent bulletins, he says:
In looking over the amount of
work done in the field during the
past week, the fact that there are SO
rigs working, either just completing,
rigging up, or drilling, stands out
very strongly when it is considered
that it is now the middle of October,
that this has been a very poor year
for the oil business, and that the
larger companies such as the Ohio,
California, Carter, etc., have done
just as little toward drilling up
their acreage as possible and still
hold their leases. That they will
have to put on a very active drill
ing campaign next year in order to
hold or validate their leases is a
matter of record in the court house.
Exactly what amount of work
will be done next year in the field
is hard to estimate, but if the pres.
ent activity is any criterion at all,
it will be one of the most active
years this field has ever seen. With
the exception of some 20 to 25 wells,
all tn ewells drilled so far this sea-
son have been put down by indie
pendent companies, so that, allowing
the same number to them for next
year, as they have drilled in 1924,
there will be in the neighborhood of
$50 to 400 wells drilled during 1925,
with the larger companies working.
"This is a rough estimate, but at
the same time conservative, and if
the price of oil goes up, as it is al
most bound to do, this estimate may
be very low. At the present time
there are several different prices for
oil in the field, due to the fact that
the independent refineries are hav-
ing hard time securing enough oil
to supply their plants. The field is
producing over 5000 barrels a day, |
but it does not begin to take care of |
the demand, and the brightest part
of it is that should the production be |
increased to 10000 barrels daily it |
be a very short time and little ex-
pense before the different refineries
could increase their capacities to
handle considerable more than this.
Bonus Increases Price.
''The posted price (by the Ohio
company for the field is 80 cents a
barrel at the present time, while
the international Refinery at Sun
burst is paying $1.00. One operator
selling to another refinery gets pre-
MUM of % cents, plus the two per
ent shrinking charge; another gets
;1.30 straight, while another has
'een offered $3.50 per barrel at the
veil.
'This last is for Sunburst sand oil
which runs some AZ degrees Baume.
seems to be only a question of
ime when the Sunburst sand oil will
e segregated and when that hap
ems there will be two posted prices,
he Sunburst sand oil, commanding
price much nearer what it is really
-orth. This naturally will not oc-
lr until such time as the production
)r this sand reaches a point where
ley can afford to run it separately
ONE companies such as the Home
AXE, Potlach and Beardslee are al
lady starting after this production,
I'D next year will probably see a
'eas.
''The fact that the Sunburst sand
l contains no water, is considerably
CHER in gravity, and that offset
ellis are fairly sure of production,
axes it very attractive to the OPP
ator. That the production from
is sand will hold up better than the
lis is seen from the fact that Sun
lrst sand wells have increased ra-
er than decreased when pumped.
lie Homestake Riebe No. 2 is now