, 1925-01-21
Consolidated Royalty
Shows Earnings Of Half
Million in the Last Year

Consolidated Royalty on company
during the year 1924 had earnings
of little less than n half million
dollars and expenses of only $45. 600,
according to the annual statement
to stockholders mailed out last night
with quarterly dividend checks. The
balance sheet of tho company shows
assets of $5.s49.s2
The financial statement is accom-
panied by a report of the years
activities by b. B. Brooks. president
OF the company. which follows in
full:
ITO the Stockholders Of The Con-
solidated Royalty Oil Company:
ct am pleased to submit herewith
the seventh annual report of The
Consolidated Royalty Oh company
for the year ending December 81,
1924.
1.-The past year has been rather
disappointing in some respects to
the oil industry. During the first
half Of the year. conditions were
very favorable, with Salt Creek
crude oil selling at SLIGO per barrel
in the field and with gas pressure
sufficient to lift all the oil hat
could be used by the refineries In
the Rocky Mountain section.
During the summer, the gas pres
sure declined rapidly and by early
fall over 800 good wells were stand
ing idle, simply because OF INSULT
Client gas pressure to make the wells
flow naturally; and. as the larger
operating companies had not COM
pleted their electric pumping plant.
costing several million dollars. these
wells were inactive during the last
half OF the year and are even now
awaiting tho final installation of
electric pumping system. We an
ticipate increased production in the
near future. Tho price of oil was
also reduced to S5c per barrel and
these two conditions combined to
materially reduce our income during
the last six months OF the year. AS
will be noted by our annual financial
statement submitted herewith. we
have not quite earned our dividend
requirements, and a few thousand
QOlihIb II DCitiS ptAu llOil u DAucs
"The recent discovery Of large oil
production from the Lakota sand at
Salt Creek is very important to our
company. "a 1t proves that prac-
tically all the acreage, on which we
own royalties in the Salt Creek field,
is within the boundaries of this new
oil production. The Lakota sand
we'll on section 20, township 40
north. range 10 west, came In with
q flush production of approximately
5000 barrels per day; and as we
have very substantial royalties in
this section. and the sand is over
100 feet thick. we a reasonably
expect splendid returns for many
years from these lower oil horizons.
California Wells.
"Our well In Orange county, Cali
fornin. was drilled to a depth of
$500 feet and proved to be a dry
hole. We have practically aban-
doned that test.
"In northern California, Colusa
county. the est well has reached a
depth of 1875 feet and has had a
number of very good gas showings
~ 4afto A'NtAAtfl 9bAAO Oh liQACtt
lions. We consider this wild ca test
as very important as we have an
1S% per cent carried working inter
est In about 10000 acres of leases
on this structure, and the present
showing is very promising.
Wallace Creek.
AT Wallace Creek, on account of
the severity of the winter and the
freezing up of the water supply. the
well was shut down. but drilling
operations will be resumed In the
near future, This well is at a depth
of 100 feet and has also had some
very favorable gas s%howings.
Billy Creek.
THE fifth well which was located
on the Mclaughlin farm. was sixty
five feet lower on the structure than
any OF the other wells AMI showed
three feet of oil saturatlon in the