Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1937-08-28

or nondepOsitiOn, and that the oil there
migrated from the DevOnian to the base
of the Ellis formation and thence south
ward along the unconfOrmity for many
miles,
One by one, DIR. Collier discussed the
various wells which had oil below the
lime. He pointed out that oil is frequently
found in the Sweetgrass Arch In spots,
such as GenOu, where there is no evil
dence Of a local fold to explain the pres
ence of the oil.
In the case of the Dry Fork well near
Conrad he said; "a strong flow of fresh
water was reached at 1920 feet and a
quantity of black sulphur-free oil was
obtained. The oil rose from 40 to so feet
in the hole during a night The gravity
of the oil is estimated at 20 to Is de-
grees Baume. This oil must be either in
a fissure in the Madison limestone, or it
seems more likely, in a DeVOnian sand
stone not found in the oil field. IL it is
in the Devonian thickness Of the Mad
ison is not more than 600 feet at this
place. The Dry Fork well is near a
low area in the crest of the Sweetgrass
Arch, called by the writer the Conrad
Saddle The top of the Madison Iimstone
at the well is about 1 200 feet above the
sea, whereas the summit of the Kelvin
Sunburst dome is about 2,1OO feet"
The reasoning of DIR. Collier was con-
elusive enough to Justify a wildcatter-
a man who wanted to open a new oil
field-tO drill a DevOnian test in some
such field as KeVin-Sunburst, POndera or
Bannatync. 1t follows that If oil can be
found below the lime in as unfayOrable
a spot as Dry Forks WHAT MAY BE EX-
PECTED UNDER FAVORABLE STRUC-
TURAL CONDITIONS?
We have no idea that any operator who
will read carefully the conclusive reason
ing of DIR. Collier will go out and drill q
DevOnian test In Montana but the find
ing of DeyOnian oil at Baker and now
the development of commercial Oil-
field from DevOnian lime in Alberta, is
accumuIative evidence that certainly win
convince someone that oil history of
other DevOnian-OiI states will repeat In
Montana.
In the meantime it means just this to
us, as royalty buyers: the truly SPECU-
LATIVE value of royalty investment
in Montana is in the possibility OF DE-
WOMAN OIL. When we buy a royalty,
we do not buy ON the prospects or even
possibilities Of DevOnian oil. Yet back in
our minds we hold the idea that some
day our royalties may pay ms tenfOld or
even hundred times as much as we
expect from the present producing shall
low horizons. Those of us who reason
this thing sOut to our own satisfaction
can do well to accumulate royalties
against the day when$sOme intrepid oper-
ator will drill the Devonian and bring in
the new epoch of Montana oil industry.
At that time royalty prices will go up
priced on possible DevOnian values. But
at that time our members will have no re-
grets, no matter how high prices go for
our investments are based ON possible
production from known horizons above
the Madison lime. This week we are
buying farm outright In Kevin-Sunburst
field, where there is no question about
the presence of oil, as indicated by wells
drilled around 1t. We are buying it on
a basis that it must produce 200 barrels
of oil per acre to pay out. III the for
nation above the lime does not produce
more than that, it will not pay to drill
1t, of course. III there is any Devonian
oil below the lime, that is ours, also
Its presence or absence has no influence
on the price we now pay or have paid
for our ROYALTIES. But the news OF De-
vOnian Oil at Moose Dome increases Our
hopes of DevOnian oil under all the row.
alties we have purchased
We have read of the SpindletOp royal
ty owner who became Disguised with his
royalties and determined to sell them
but couldn't The production had dwin-
He'd away and he was ready to charge
off his royalty investment to profit ana
Oss-nOstIy loss. In the midst Of his
luandry the phone rang and a stranger
wanted to buy his royalties. He felt
hat the stranger was too excited so he
wired a friend at SpindIetop and learned
hat great deep sand producer had
leen brought in.
We are looking forward to the day
when that history viii repeat for ms ON
'ome OF our bad" royalty investments.
uch as Bannatyne. We believe that
history WILL repeat