Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-08-31

AT the time this report was Written
Mr.. Hager had opportunity to study the
initial production of only the Sunburst
sand wells and on the Dayey farm and
the Swayze farm. We happen to know
the production of the Swayze farm be-
cause our. members own half of the
landowners royalty on the Swayze, on
which there are two producing wells
Those two wells have yielded to date
something more than $4,000 worth of
ola little over $4,000 each, and are
still producing. That is close to the Hag-
er estimate.
The Larson farm on which the Gladys
Belle well was drilled has produced
36,647 barrels of oil worth $44,636. The
offset produced about the same.
The Mid-Northern wells referred to
are on so acres of the Howling farm.
On this 80 acres 10 wells have been drill
ed-nine producers and a dry hole.
This lease has thus far produced $780,
9O77O barrels worth sass, 07S.13-an
average of $45, 6O7S1 per well, which is
double Mr. Hagers estimate.
The Hogan" property referred to is
the Helmerichs farm, now operated by
Continental Oil company. This 120 acres
has seven producers and one dry hole
InSSe Wells nave pIOuuCSu lAuS lar
4OO,93799 barrels of oil worth $780,
321S2-an average of $57,415.22 per
well more than double Mr. Hager's es-
innate.
At one time Dorsey Hager's estimate
of 5000 barrels per acre looked far too
sangudne. But in view of acidization, 1t
is quite possible that this figure will be
realized in the ultimate development of
the formations ABOVE the Madison
lime. At the time of this estimate he
did not lay stress on the possibili-
ties of Devonian production but he did
lay stress on the showing of oil in the
Troy Sweetgrass diamond drill test
which took a core of the Devonian. He
pointed out that the Madison lime was
500 feet thick at this point and below
this formation the Devonian shales and
limestones were found which were .375
feet thick and petroliferous. He noted
the showings of oil in the Troy-Sweet-
grass core of the Devonian lines in his
tabulation of formations.
OF interest at this time is his com
ment on INFESTED areas of the field.
mot a single test hole has been
completed in townships 35N, RE,
23N, R2W, 33N, R1W, and BIN, R1W,
(In 1929. Two holes have been
drilled in BAN, R1W. One of these
was a ~ in. diamond-drill test, the
Troy-Sweetgrass well, which showed
oil but was never put on the pump.
These townships are structurally as
= well located as other producing areas
and there is no reason why production
should be absent from them. In at
least three full townships no adequate
test hole mas been completed to date.
These townships are just as well To-
Gated, structurally and stratigraphi
cally as other areas on the dome that
are now producing oil.
The area referred TO has not yet been
developed, except for gas, and the facts
regarding the structural situation are
the same now as then. Dorsey Hager's
guidance of 1923 may be Of value to
operators and royalty investors in the
future.
To those persons who are interested
in buying royalties through this or
ganization in the future we wish to
say that in these 18 years we have
profited by mistakes; and we have
been right more times than we were
wrong, else we would not be here to-
day. Furthermore, we expect to sue
coed in the future by continuation
of the policies which has made it pos
sible for us to continue to serve roy
atty buyers for these is years past.
There is a thrill about royalties that
is found in no other investment. We
would not willingly give up this ex-
citing business, so no matter how
much money we may make, we hope
and intend to be here in the same role
18 years from now. Certain it is
that the man who places his invest
ment through Landowners Royalties
company is insured of honest guidance
along the established roads to finan-
cial success.
Any new corners who may be inter
ested in joining our organization are
invited to do so.