Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-02-01
THOUSAND-BARREL OIL WELL
Don't Try To Buy Royalties In Cut Bank Now---

! Cut Bank NoW---
The day of thousand-barrel wells has arrived
in Cut Bank
Just at a time when we were content to get
east and west limits of the field supposedly de-
fined, we find ourselves starting all over in APP
praising royalties and leases In this remarkable
field, and with the area a completely changed
problem.
The completion Of the Santa Rita-Lander No.
with an initial production Of 1,4OO barrels per
day, means that future drilling may bring
multi-thousand barrel wells. We did not expect
1,OO0-barrel wells. Now we frankly do not know
what to expect.
The Lander well was dry hole" II had less
than a commercial amount OF oil in the Cut Bank
sand. 1t showed five times much wafer Oil.
II looked like the beginning Of the "bad news"
for the west edge of the field for other wells in
the district have been showing water in the Cut
Bank sand
Tn operator having cored a saturated sand in
the Sunburst horizon, above the Cut Bank sand,
bridged back to the Sunburst sand and shot off
the pipe with nitro glycerin. Instead of 5-barre
we'll, expected, it began flowing a solid stream
of oil the crown block.
Thus new epoch is ushered in at Cut Bank.
This is wonderful news to royalty OWNERS in
Cut Bank oil field It is bad for royalty
INVESTORS who have no royalties in this field.
To all. our members we issue this warming:
THIS Is THE WRONG TIME TO TRY 10 BUY
ROYALTIES IN CUT BANK OH. FIELD.
Every deal had pending automatically
OFF when this big well was reported. Naturally,
every royalty Is walking air." II ne
sells his roalty 1t is the basis of l,000-barrel
wells, We know very well that thousand-harrel
wells will be the exception rather than the rule
in this field. It is possible that an area viii be
found on the west side. whore tA0usand-barrel
and possibly multi-thousand barrel wells VIII be
completed. 1t makes the Dunbar told as an exc
ample. look very promising
There is a REASON for this big well. 1t can
be explained by some rule OF the science OF ge-
ogly. We have talked with numerous operators
iutey sure, an agree that the accumulation in
the Snnburst sand at the Lander location is due
to fauung or other unusual condition not found
elsewhere. on the other hand there may be sew
eral wells in the field which, had the SunbnTst
sad been shot with nitro glycerin. might be pro-
ductng today.
At any rate. it is safe to say that 1t is bad
business to try to buy royalties at this time The
ordinary psych ology-ke the sheep jumping
over the Wall Street fence-is for everyone 10
rush in and try to get in on the big discovery.
But anyone who has been in royalties for 10
years, knows that the man who buys In the midst
of such excitement Is found at Cut Bank today
spends eight dollars for excitement TO each two
dollars for oil in underground storage, commonly
known realty We would much rather forego
the purchase OF excitement with our herd-earned
dollars and spend money later on for OIL
when the excitement has died doWn-as It will
few dry holes perhaps water wells win in
due course OF time tone down the west side
citement to place where will be able to pick
up bargains
After all is said and done. the only consider
alton in the purchase OF royalty is the OIL IN
THE GROUND. Knowing the thickness Of the
sand, the porosity. saturation7 and bottOm-hole
pressure we do not care particularly, whether
the oil comes out at the rate Of 1,000-barrels or
35 barrels per day. In any case, cannot buy
royalty the Lander farm. There is none for sale
at any price, even if we were willing to pay twice
much it will ever produce. Aside from the
Lander, we know of no oil land where we can
reasonably expect any such production So the
best way is to rejoice in present holdings for
there are lot OF people who will plunge into
royalties the strength of this excitement
people who have idea Of value who win af-
ford a profit for those of us smart enough to
TAKE a profit We know, OF course that Cut
Bank will cool off, in due course of time.
Suffice to say. we are going to keep
bers informed as to the developments. AS soon as
we can learn the REASONS for this gusher,
will be able to capitalize the facts. We Will issue
bulletins from time 10 time giving news Of de-
velopments in the district. A confidential bulletin
will go out this coming week-the first Of the
series. Anyone who is particularly interested in
following this situation should SO advise us, by
writing. also clip and mail the attached coupon.