Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-08-31
We Re-check Our 18-year-old
Measuring Stick"

Congratulations" we wrote to the
group of our original members this week,
on the occasion OF our EIGHTEENTH
NEUTRALITY-SUSPICIOUS. Royalties company
having. been organized eighteen years
ago thA week.
Congratulations because Of your own
ership of royalty in Kelvin field which
we firmly believe will make you far more
money in the future than it has in the
past we told them.
That is a large order. in some in
stances but we still believe our wish will
be fulfilled 1t applies especially to the
1922 members because our buying was
confined to Kelvin field in the early years
this organization was active CHANGING
over the list this week we find that five
OF our old-time members passed away
during the past year. reminding all Of us
that time speeds relentlessly on although
many of us try to pass off lightly the
growing number Of gray hairs However
of our original group all but two are liv-
ing Several have left Montana One is
now a broker in California another be-
came a banker; a third is now a pros
porous automobile dealer. The two who
have passed on left behind estates of
which any man would be proud; leaving
buclI WlQOMS SOOQ luEOmeS WHICH VIII
take care of them comfortably, with
none of the dangers of diversion of the
principal into less secure investments,
and with no taxes to pay other than on
income and no danger of loss of their
properties as a result of outside attack,
such as frequently occurs to estates con-
sisting of stocks and bonds.
Fortunate are the investors who have
consistently put their savings into Mon
tana royalties at the prices our members
have paid. 1t is not on the production
of present producing horizons that we
base this opinion but on the prospects
for DEEP PRODUCTION which we be-
lieve is coming as certain as day follows
night
CHANGING back over these IS years it
seems to us as though it is merely a
period of heart-breaking circumstances
of widely varying prices of crude, of
uncertain markets resulting in carnivals
of feasts and famine but through it all
we know that more than TWELVE MIL
LION DOLLARS have been distributed
among royalty owners Most landowners
sold at least part of their royalties, and
many of them sold practically ALL of
their royalties, so a goodly part of
this twelve million has gone to royalty
investors. Certain it is that SOMEONE
gets one-eighth of all the proceeds from
the sale of oil and gas on each and every
producing farm in Montana: 1215 bar
rels out of every 100 produced are de-
livered free of cost of production to the
fortunate royalty owners.
For years we have watched the de-
velopment of other states where deep
drilling has arrived with all the devel-
opment of attendant sciences North,
south and east OF US we have seen deep
drilling bring in greater gushers than we
have ever known. Development of
Illinois field was the 'last straw" For
decades people have been walking over
great OWL pools in Illinois which could be
had for DEEPER DRILLING. Some
Illinois, with all of its shallow fields,
was a good place to do some deeper
drilling. And between 1886 and 1910
Illinois jumped from a forgotten" oil
state into third place in the United
States. With no markets to start with,
Illinois forced its way into the markets
of the world.
We are confident that Montana is
ripe" for this same step. Up to this
time there has been little incentive to
bring in more oil production. The pre-
sent market situation leads to the be-
lief that Montana MUST have some adj
ditional production and some additional
reserves to justify its present refinery
investment.
When in need of more oil there is only
one thing to do: DRILL DEEPER in
Kelvin field
We are confident that other production
horizons will be opened up in the Madi-
con lime. We know that a horizon. sa-
turated with oil, is present in the Madi-
son lime below Kelvin field correspond
ing to the Turner Valley horizon. We
know that there is oil in the Devonian.
We have a sample OF oil taken from a
well which was drilled to the Devonian
in Kelvin field. Our members bought In
fee simple 100 acres Of land less than
a quarter of a mile from the we'll which
yielded that oil, as evidence of our faith
that there is MORE oil in bhe Devonian
that, through acidization, will repeat
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