Evening star., 1933-04-25
REV|S|ONS Of OIL
|. ESTIMATES LIKELY
Tests at Oklahoma City In
dicate Field May Have
Been Overrated.
BY the Associated Press.

BY the Associated Press.
TULSA, Okla, April 25.-Revised es-
Inmates of the productive possibilities
Of the midcontinent areas two most
troublesome flush-oil regions are in
prospect as a result of potential tests
concluded in East Texas and under
way at Oklahoma City.
Biologists and petroleum engineers
were inclined to shade considerably
the estimate Of 123,000,000 barrels
daily production from East Texas,
which followed taking of potentials
there.
key" Wells Tested.
The possible output was calculated
from tWo-hour tests Of 800 key" wells
opened in groups of so over a five-day
period. Technical experts of several
companies with headquarters here
doubted If the true picture would be
ascertained without opening all the
10000 wells in the field simultaneously
for "a hours. This method was out Of
the question. however, because of lack
Of storage and transportation facilities.
The distinctive feature of tests at
Oklahoma City was the indication the
field has been overrated and is not
capable of producing sufficient oil to
constitute an overproduction menace
for any length Of time
A decline of more than so per cent
In the first group of 40 wells tested in
the Wilcox sand area, the most pro-
ductive in the field, indicated Okla
homa City had fallen considerably in
productive power since last potenValS
were taken II months ago.
There was a stubborn fight against
taking potentials earlier in the year
and the order was issued only after the
new proration law went into effect.
The agitation over Oklahoma City
and East Texas, almost constant for
two years, has served to defect much
attention from the newer fields along
the Gulf Coast of Texas and from ex-
ploratory work in various parts of the
midcontlnent
The drill has been active for some
time, and the large sums spent in ex-
ploration, especially in drilling deep
tests, indicate many companies are fol-
lowing the theory that present fields
and reserves will diminish rapidly and
that within a relatively short time new
oil will be required to supply demand.
Conroe, near Houston, has large pos
sibilitieS but is being held in because its
development rests with few of the
larger companies, which generally are
coming around to the conviction that
storage above ground is too costly. The
oil loses volatility, Is fire hazard and
costs both in insurance premiums and
overhead when in surface tankage 1t
also is liability in that it represents a
big investment which is not convertible
into immediate cash through loans.
There Is no continuing cost if the oil
is held in known UNDERGROUND
reservoirs.
Much interest has been displayed in
exploration in the Tomball area also
near Houston, and in the Binger Wild
cat region in Southwestern Oklahoma
Deep tests are underway in both.
Findings Kept Secret
In the Binger area, the drilling COM
panies have refused to divulge their
findings while drilling ahead 1t is
common knowledge in oil circles that
they failed to get dry hole money"
from the other firms, and now seek to
determine if they have an oil pool before
word gets out SO adjacent acreage may
be obtained at comparatively low cost.
Ut is a common practice for Wild
cater to seek, and often get. dry hole
money" which Is financial aid to OBJ
tain information for the industry gen.
orally about some new and unexplored
territory
Little has been heard recently Of the
widely heralded Perry area in Central
Western Oklahoma. but several tests
are drilling. and there has been a con-
sistent leasing campaign along the
granite ridge" section of Oklahoma,
where a number of additional deep
holes are being drilled.