Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-06-22

Here in Montana it is possible to buy
farms on known but undevelOped geIO-
gical structures, for varying prices
mostly ON the basis of ordinary farm
land. No such boom as that in Illinois
has hit Montana but 1t is coming At that
time prices viii go up.
There are three proven oil fields in
Montana in which it is possible to buy
farms between producing wells. The
cost of these farms is perhaps beyond
the pOcketboOk of the average indi-
vidual investor. At any rate, invest
with enough money to buy an oil
farm outright would do much better
to buy eighth interest i'm each of
EIGHT farms and thereby remove all
question of risk, for he is virtually GER
tain that one of them will give pro-
ductiOn large enough to pay a profit
on the total investment.
SO, If the investor is unable to buy an
entire farm, he may Join with a dozen
others who will each put in their pro-
pOrtiOnate share, elect trustee among
their number and thus become joint
owners of an oil firm. Since the pro-
duction of oil is a highly specialized
business, under modern methods, these
investors will lease their land to
competent operator, giving him S7h
per cent of the oil i'm return for the de-
livery to them of 12M barrels ont of
every 100 produced, to be delivered free
of cost of production. In other words
1t is the ROYALTY oil that is valuable
to the investor.
Then it follows that the wisest in
weston would try to join with an opera
tor, if possible, in the purchase of a
farm; the operator to get the lease and
the investor or group Of investors get
ting the royalty.
To find such opportunities is some-
thing else. The method of building up
a financial future certainly is not in the
stock exchanges, where during the month
of May listed shares shrank more than
ten billion dollars In value, ON paper.
During May the earnings of royalty
owners i'm the nation showed a gain
err the previous month. The value of oil
royalties did not shrink nor are they
likely to, despite the fact that the Am
erican oil industry has until now been
selling less oil to foreign countries than
in normal times. In spite of loss of for
eign business, the American oil In
dustry has shown a gain during the past
year, and that has been reflected In the
incomes of royalty owners throughout
the nation.
To buy a royalty is to buy oil in
storage. 1t is an invest
ment that cannot be taxed, as can real
estate or money i'm the bank. It is oil
that will be delivered to the owner
FREE OF COST OF PRODUCTION. 1t
Is oil that viii be produced and market
cd when it can be so marketed AT A
PROFIT. Where title is good and the
purchase price is right, there can be a
minimum of risk. The speculative feat
lres depend on the generosity of Moth
N Nature. The man who is lucky enough
70 have royalty ON a gusher pool may
make a fortune, greater than is obtain
lble in any other line of investment of
which we know.
To understand the factors of royalty
,alues and know something of the reIa-
i've inert of available properties, an
INVESTOR must beIongs to some fact-find-
ng organization which has capable leg
i and geological advise and competent
Ources of informtion.
Anyone desiring this service is invit-
d to contact this organization.