Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-08-20

encountered This well showed 5000
barrels during a 24-hour test through
a one-inch flow bean or choke. 1t is
now held down to $50 barrels-and will
pay out in about three years
Because of the great pressure at that
depth, this we'll is expected to flow for
many years to come. The rock pres
sure increases normally 40 lbs. per
100 IT. of depth In Montana the gas pres
sure is called sub-normal, figuring about
80 pounds per hundred feet The in
crease of this normal rock pressure with
depth is one of the great factors in deep
sand oil production. Turner Valley wells
at around 5000 feet, flow although they
are getting their production from the
Madison lime which formation is topped
in the Kevin-Sunburst field at from 1400
TO 1000 feet The Turner Valley hori-
zon in Kevin-Sunburst will be found,
whenever wells are drilled that deep, at
from 1900 to 2,400 feet That will be
deep drilling" in Montana.
Nor is it short journey from shall
low sand TO deep sand production. 1t is
an interesting fact that Continental Oil
company, which is active in Montana
drilled IL wildcats in California before
IL brought in its Wasco producer. All
this drilling has been done since October
1885. Continental spent S1,375, 900, or
about $4,000 per hole in that pro
tinental to develop production in Cali
fornia
Many people wonder why this ex-
pensive deep drilling is undertaken at
this time especially considering the
present hullabaloo about overproduction
The answer is that exhaustion Of shall
low horizons may occur all too soon,
According to conservative estimates, the
total proved IT, S. reserves are sufficient
for only about 10 years. This does not
mean that we shall be out of oil by
1913; it means that this is all we have
in sight, were all prospecting to sud-
denly cease. To find mdre oil the
drills must bore into oiI-bearing sands
lying deeper than those yet penetrated
Montana has a program OF refinery ex-
pension on that will mean a total in
vestment running into millions of dollars
This refinery Investment must be amor
tized by the products of Montana crude.
Therefore, present supplies of crude are
not sufficient. The fact that there is
over-production today is no sign that
five years hence there will not be enough
oil to keep all refineries running. I'M
less new oil pools are developed, there
WILL be an oil shortage five years
hence.
Knowing that this is a fact, leading
operators are looking forward to that
day and are beginning to think in terms
Of deeper drilling.
When deep sand production ARRIVES,
the great opportunities now open to
investors will be swiftly closed. For
tunate is the royalty investor who can
assemble a group of good properties,
known to he located on structure, in adj
vance of the coming of Devonian. Silur-
ian and Ordovician deep-sand production.
1t is a safe guess that completion of
the deep test of Continental definitely
shut out royalty investors. Yet when
the area was considered "disproven,"
royalties might have been purchased
fairly reasonably. We believe that the
same thing will occur in Montana
Furthermore, that day is not far away
Members of this organization are kept
ully informed of developments and are
given opportunity to capitalize them.
Current publications will be sent upon