The Kevin review., 1926-09-02
O'NETL BROTHERS
SELLS REFINERY

Twelve WelS Will De immediately
drilled on acreage in the Kevin-Sun-
burst field taken over by the Calf
ornia Petroleum company through its
purchase of the International Refin-
ing company and the Northern Star
Oil & Refining company, it was an
nounced in Great Falls Friday by
John T. O'Neil, one of the principal
owners of the International and the
Northern Star and now associated
with the purchasing company. An
| nouncement of the purchase was
made Thursday by Jacques VinMont
president of the California Petrol
cum, the deal involving $5,OOO,OOO,
and ranking as the largest oil trans
action ever completed in Montana.
The wells will be drilled on the
Lashbaugh lease, section 27 So 2 W;
the White lease, section % 35 1 W,
and the remainder in the southeast
ern portion of the field. Two of the
wells now are under way and the
others will be started as soon as
equipment can be assembled and the
work begun
It is the intention of the California
Petroleum to substantially increase
its acreage holdings in the field, Mr.
O'Neil said, and deals now are under
way for additional leases, since the
refinery and acreage were purchased
from the O'Neil brothers. 1,50O
acres have been taken over. This
deal embraced the T. P. Jones acre
age in the southeastern portion of
the field
Is Big Company
The California Petroleum company
is the fourth largest producer in Cal
ifornia with production in all of the
major fields of that state. The com
pany's production totals $4,000 bar
rels and it's refining capacity equals
that figure. In addition it operates
in the marketing, distrs3utingy and
pipe line departments of the indus
try The company's capitalization
is $125,OOO,OOO.
Purchase of the O'Neil brothers in
terest in Kevin-Sunburst places that
field within the territory to which
the California Petroleum is giving
major attention and will make its
Montana activities a portion of the
operations of one of the largest oil
and refining concerns in America.
far reaching effect anticipated by
Montana operators from the com !.
pany's entry here is in connection
with the market situation and a re-
sultant influence on crude oil prices.
Predictions we're made by Great
Falls oil men Friday that an advance
L. Kevin-Sunburst crude may reas-
1nably be expected in less than so
lays, principally as a result of the
California Petroleum company's ac-
luisition of the international refin-
cry. 1t is pointed out that the COM
)any's facilities. for wide distri-
)ution will serve to avoid congest-
ons of the kind that have in times
,ast caused lowered prices and cur
allied field development
Railroad rates on oil products
rom Kevin-Sunburst now are rapidly
eing adjusted, Mr. O'Neil said
here is evident, he said, a dis
osition onthe part of the carriers to
ooperate in the matter Of rates and
e anticipates that this influence on
be field will conform with situations
rising from further expansion of
reduction.
Zone Rate to Spokane
One of the great factors in i'm
oving the Kevin-Sunburst market
blowing the opening of the Inter
ational refinery was rate given
= the Great Northern on the plants
,ps to Spokane.
A prnounced centering of atten-
on on the -Sunburst field has
,sulted from the entry of the Calf
mia Petroleum company, Mr. O'Neil
i'd This deal, following the pur-
lase of the Rice-Fulton tracts for
',250,000 by the Julian Petroleum
,mpany, has attracted the interest
the California oil industry and
r. O'Neil said it is probable that
very California operating company
any consequence will acquire
'operties in north Montana in the
rly future.
"This deal unquestionably means
lendid thing for Montana" Mr..
Neil stated. 'It gives the industry
re an entirely new phase and
thin short time there will be de-
lopments and expansions that
ere wholly unexpected a short time