Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-08-27

it's ultimate value. Thus If man pays
So for a royalty of one barrel out Of
100 barrels produced on a certain tract,
he knows THAI a yield of $500 worth of
oil will pay him back his investment.
If the tract produces $4,000 worth of
oil, he will receive a return of 1000
per cent.
T Until device is invented which
] will actually measure the amount Of
oil in the ground tat which time
bargain royalties will likely be a thing
of the past,) we will have to GAMBLE
on the amount of oil in the ground. The
one thing of which we must be absolutely
certain is that we are not buying on an
expectancy of 10000 barrels per acre
in a field that will yield only 5000
barrels per acre. We have a list of
the principal fields in the United States
with total production and total of de-
veloped acres, to give as some idea OF
what the average oil field HAS yielded
in the past. We know that there are
relatively few oil fields that have been
exhausted, because most old fields are
revived by deeper drilling, by acidization,
by water flooding or representing or
other modern, methods. However, their
FLUSH yield gives us some idea of what
the best oil fields have produced per
acre.
Here in Montana we have similar
figures. We can better apply them to
other Montana structures. We know not
TO use Cat Creek Ca sharp dip structure
in which the oil is concentrated In
small area) as a criterion for a low-dip
structure such as Kevin-Sunburst which
has a producing area ONE HUNDRED
TIMES as great as Cat Creek.
All this explains why the high type
of citizens in our membership They are
people who are willing to put a little
brain energy into their investments.
People who are LAZY about their in
vestments do not choose royalties be-
cause they must read and learn some
of the simple underlying principles of
the oil industry before they can expect
to succeed. NO LAZY PERSON READS
THROUGH THESE ARTICLES. Unless
he reads these articles, he does not join
our organization.
Once we get a new member who asks
many questions, we know that he will
likely succeed. NONE of us knew any
thing about royalties or about the oil
industry. at the start Those who have
been engaged in the royalty business for
more than ID years are able to greatly
simplify the process OF learning for thoes
who are today starting.
The average man will not accumulate
enough savings from wages, salary or
the average business. to buy conservative
bonds enough to provide him with q
livlfhood In years to came. To succeed
in building up an income, the investor
MUST speculate. OF all speculataons, we
believe that an investor can do no better
than to gamble on Mother Nature and
that Is done by buying a share of all the
oil deposited on given farms in oil fields
The depressed condition OF the crude
market has resulted in an advantageous
position for the royalty investor. It is q
buyers market In years past, it has
been decidedly a sellers market, and
that day viii come again as certainly as
automobiles continue to use gasoline for
fuel and oil for lubricant
We invite new members to join US
in the purchase Of landowners royalties
in Montana oil fields.