Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-06-15

- ONE time ago we undertook a
0systematic program of royalty
buying in Kevin-Sunburst field
a field that has produced more than
35,O00,000 barrels of oil worth
more than $4,000, 900. We be-
lieve that this field has even great
er potentialities in the future than
ever before as a result of the new
sciences of production, chief of
which is acidization OF lime horizons.
Recently we joined with an OPP
orator in the purchase of some
land in fee simple in Kevin-Sun-
burst field. He gets the leasehold
rights and we the royalty. He
told us his chief purpose in buying
this land was to definitely secure
a property which he will have. in
any event, when deep production is
developed: probably in the De-
vonian.
with all the uncertainty that
there is in business, want to have
something of which I am SURE"
he told us. Leases usually carry
rentals and drilling obligations
which may force a man to lose his
property. All leases expire, even
tually. But where we own the
land in fee simple, we know our
investment is perpetually safe. No
matter whether I get production
above the lime, in due course of
time I feel that Devonian oil will
be found-certainly there Is oil in
a formation below the present hori-
zon. Just when 1t will be found.
do not know, but I intend that
no matter what else may happen.
i have this one property which l
will keep, for it's location Is such
that / believe that it will produce
in the lower horizons"
He might have been reading our
publications, to have arrived at
these conclusions, but we doubt It,
1t is the expression of a sound bust
ness principle, which is being adopt
ed by the best operators There
is none who does not confidently
expect that horizons below the top
of the Madison lime will produce,
doubtless in greater volume than
have the upper horizons 1t is the
history of every other state where
the lower horizons have been tested
and there is nothing to indicate
Montana will be an exception to the
On the contrary, there is every il
ton in the few Devonian tests d
that there is oil in the Devonian
lower formations. The persons who
this fact are the ones who preache
years that there was no possibility
in the Devonian in Illinois. All o
Devonian doubters in the country
be drowned in the flood of oil fr
single Illinois Devonian pool
Likewise. the day is at hand
Devonian production will be deve
in Montana. The man who can
correctly the spot where this Dew
accumulation has oceured-as our
ator friend has tried to do-undoul
can make himself a tremendous for
Certain it is that SOMEONE is goil
profit. SOMEONE will own the
over the greatest Devonian pool. s.
ONE will own the royalties.
More than five million dollars
been paid to those royalty owners
guessed correctly about the 1ocatiC
the oil at the top of the Madison
Some who had the best property di'
to keep 1t and as a result they d,
realize or sbelieve it or could not a
their fortunes, or a part thereof, to I
one else. Those other persons wer
some instances, just guessers.
others bought their royalties on a
thought-out theory.
Now that we have the records of
ly 1900 producing oil wells to guild
plus a production record of $45,00i
or more, it is possible to look bac
the old theories to see what would
been the best guide in the early
of this field. We find that one OF
first theories, first evolved by Oh
L. Emmons and worked out by "
Loci (geologist for Ralph Arnold)
mapped later on by Jameson g. HOY