The Carbon County chronicle. [volume] (Red Lodge, Mont.) 1924-1924, 1924-10-29

The year 1925 will sec tremen-
dous drilling activity In Kelvin
Sunburst field In the opinion of
Fred G. Plat, II. 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
lpast week. the fact that there are SO
rigs working, either Just completing,
rigging up, or drilling, stands out
very strongly when IL Is considered
that II is now the middle OF October.
that this has-heen 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 10 put on a very active drill
ing campaign next year in order to
hold or validate their leases liz 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 IL the pres
ent activity is any criterion at all,
| 1t will be one of the most active
years this field has ever seen. With
the exception of some 30 TO rs wells,
all th eweils 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, az 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 IL
the price OF oil goes up, as IL 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 II does not begin to take care OF
the demand, and the brightest part
OF It Is that should the production be
increased 20 10000 barrels daily II
be very short time and little ex-
pense before the different refineries
could increase their capacities to
handle considerable more than this.
Bonus Increases Price.
1.-THE posted price (by the Ohio
company for the field is 90 cents a
barrel at the present time. while
the International Refinery at Sun
burst is paying $500. One operator
selling to another refinery gets pre-
MUM OF 26 cents, plus the two per
cent shrinking charge; another gets
$3.50 straight. while another has
been offered $3.50 per barrel at the
WELL
This last Is for Sunburst sand oil
which runs some az degrees Baume.
II seems 10 be only question of
time when the Sunburst sand oil will
be segregated and when that hap
pens there Will be two posted prices,
the Sunburst sand oil, commanding
price much nearer what II is really
worth. This naturally will not oc-
cur until such time as the production
| for this sand reaches point where
they can afford to run 1t separately
Some companies such as the Hor,e-
stake, Potlach and Beardslee are al
ready starting after this production,
and next year will probably see a
lot of activity In Sunburst sand
areas.
THE fact that the sunburst sand
oil contains no water, Is considerably
higher In gravity. and that offset
wells are fairly sure OF production,
makes II very attractive to the OPP
orator. THAT the production from
this sand win hold up better than the
Ellis IL seen from the fact that Sum
burst sand wells have increased ra-
Their than decreased when pumped.
The Homestake Riebe No. is now
making 1870 barrels and II came In
for rs barrels. while the Securities
Htannard No is making rs barrels
against an initial of Is. The Jones'
White we'll is making around so bar
rels and only made rs barrels for
the first few days This not just
natural increase but Is due to the
wells being cleaned out when neces-
sary and swabbed out each time they
are cleaned.