Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1940-02-03

yield per acre of the developed territory
Kevin-Sunburst yield is $25,51S for
five acres. The yield of one acre has
therefore been $5,1OS. In terms of roy
atty investment, we deal in per cent
per acre" That is we buy one per
cent of the oil under one acre for a given
price. The yield per developed acre in
this field to January l. 1910, has been
$51.03
Inasmuch as we said at the beginning
that we contemplated a recovery of a
maximum of $50 per cent per acre. the
year 1910 marks an important turning
point in our history All the oil pro-
duced beyond $50 per cent per acre,
through improved production methods.
acidization, ETC., will be in excess of
our fondest expectations Kevin-Sun-
burst has decidedly made good"
In Pondera the well spacing is one
we'll to 10 acres which means a yield
of $4,099 per acre-or s4O.99 per cent
per acre thus far
What the eventual spacing will be in
Cut Bank remains to be seen. Certain
it is that one well to 40 acres will not
recover the oil. The original plan was
four wells to 40 acres but the center
spacing leaves operators in a quandry
how to escape drilling five wells to 40
acres, in the last analysis, unless some
new quirk in production methods is
evolved.
If one we'll will drain 10 acres in
Cut Bank then the yield per average
acre has been s3,36S or $3S.6S per cent
per acre.
The number of wells drilled in Cat
Greek was perhaps greatly in excess of
requirements yet the field is still pro-
ducng and applications of methods of
representing and flooding are just start
ing. Cat Greek was to have been ex-
hausted 10 years ago and again five
years ago, under the rules of petroleum
engineering, but it still goes on violating
the rules, and the deep sands are yet to
be drilled Since the $22,445,76O yield
of Cat Creek has come from slightly
more than 600 acres it is apparent that
this yield per acre Is no criterion for any
other field in the state ANY field that
yields half as much per acre as has Cat
Greek is bonanza and we do not expect
to see a Montana field that will equal
even half the Cat Greek record
TNO the person who knows simple
mathmatics these figures are very
Informative. They are not a meas
uring stick for buying royalties in the
future. They serve to affirm or deny
the value of methods employed by an
organization such as our own, which
has lived through all the years of com
mercial oil development in Montana. Our
plan of royalty investment has had to
stand up over a period of IS years in
the light OF the RESULTS of the average
well on the average farm in each of the
respective oil fields. The cold figures
tell us whether we have paid too much
for our royalties or whether our basis of
buying has offered a chance for a good
return on the investment. 1t is appar-
ent that had the average royalty cost
81 per cent per acre, the average yield
per developed acre in Kevin-Sunburst
as an example, has been $50 for each
81 invested. Had the average been $40
per cent per acre, the average yield per
developed acre in Kevin-Sunburst would
have been $50 for each 81 invested
which is not enough.
If there is any who is not familiar
with our method of figuring royalties, we
viii be very glad to make it clear to
any who enquire. The coupon here
with may be used.