Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-06-20

If oil Is present as q result Of vertical mi
grafton, then it is very probable that oil
will be found trapped below the tight black
shales of the EIIis-bIack shaIes known to
driIlers as the "bIack lime" This black lime
is the cap rock Of Kelvin field and other
fields where production is found at the top
of the Mississippian lines
1t is the generally accepted theory of
leading biologists that the oil found at the
top of the Madison lime is trapped there
as 3 result Of vertical or nearly vertical
migration through cracks In the massive
lime which Is from 900 to 800 feet thick The
theory of geology Is that shales win bend,
when the crust of the earth Is upheaved by
mountain building forces. The lime, being
brittle and hard will not bend. The terrific
upheaval, instead, cracks the Iime-mOre Of
SCATTERING than Of fauIting. There is no
displacement In these cracks. A study Of
the Madison lime in the mountains shows
that this shattering may take a zig-2g
course, but oil and gas, seeking escape ahead
of water pressure in lower formations, can
and do make their way up through these
cracks and assures Where q soft spot Is
encountered in the lime, accumulation Of
oil occurs Large vugs and assures are filled,
giving such remarkable wells as the Ohio
Baker No. and other famous Kelvin pro-
ducers which have made far greater
amounts of oil than could possibly be con-
tanned in the surrounding formation.
So it is not only possible but highly prob
able that Tarrant is going to find the source
of this Sunburst sand oil before he gets
through the Madison lime and we are fear
full that Midway viii become a new oil field
without the drilling of q Devonian test. 1t
Is difficult for us 10 say that we hope that
it does not find commercial production in
the shallow horizons. However, the Devon
ian win be tested in 5000 feet or less-which
Is by no means deep drilling, even with
cable tools.
We confess to our members that we were
caught off first base by this unexpected oil
strike We had been negotiating for two or
three properties, thinking that the SunburSt
sand would be dry-possibly carrying water
and that the contact Of the Madison lime
might be dry or carry water, providing
enough encouragement that we could buy
royalties at a price we are willing to pay.
Now we know that we waited too long, ex-
cept I'm one instance. We received news of
the strike within a matter of hours after
oil was found. Within an hour we had closed
up the most important of our pending deals.
We did not wait for n referendum or poll
of our members or the other red tape we
usually follow. We closed It Immediately,
buying mineral rights and the land as well
The land win be sold separately. The lease
hold rights are held by the Emrick- Tarrant
while our members viii divide the
royalty.
This will probably be our one and only
purchase, as royalty prices are already out
Of reach. After 20 years in this business we
have established basis of prices which we
know our members can afford to pay If we
cannot buy for those prices, we do not buy
1t all Our members made money in Cut
Bank, thanks to that definite plan, evolved
IN our years Of experience In Kelvin and
Cat Greek fields. The only big money we
have made Is in the purchase Of royalties
AHEAD OF THE DRILL. When the odds
ire from 20 TO 1O0-tO-1, fortunes can be
made commensurate with the risk. BY tax
ng less risk we can lower the odds but
he really large profits come from either
purchases at forced sale or on advance in
Ormation as In the case Of the purchase
ust made.
Our next step is the issuance Of formal
Offering Sheet which Is submitted only TO
hose interested in sharing this purchase.
Offering sheets viii be forwarded to those
rho request them.