Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-11-28
REORGANIZATION
OF SANTA RITA
Is ARRANGED

Entrance Of Standard OH New
Jersey into Northern Montana
OIL operations through proposed
purchase Of control stock Of the
Santa Rita OH a. Gas Co. which
IN turn owns Northwest Refining
Co. became known this week
through announcement by L. b
ONen that a proposal for cx-
change Of stock is being submitted
/ to Santa Rita stockholders
/ Santa Rita Is one Of the three
/ largest producers I'm Cut Bank
field, producing about 10000 bar
reis per month. It is one Of the
pioneer concerns Of Cut Bank oil
field, capitalized at 100000 shares
and the stock Is largely held by
Montanans who paid 81 per share
81 the time Of incorporation, In
1892.
The basis Of exchange Is one share
.of Standard on New Jersey stock. with
la market value OF s43 per share. for
IL shares OF Santa Rita. The plan win
be submitted to stockholders at q
meeting on Dec 26. Santa Rita owns
Northwest Refining Co. and with con-
troll Of Santa Rita goes the refinery.
located at Cut Bank.
Mr.. O'Neil. in announcing the tenta-
tive reorganization plan, stated that
insofar as he knows, no great change
viii be made in policies OF the COM
pany and that personnel Of both Santa
Rita and Northwest Refining win re-
main the same. He said that he be-
leves that entrance OF Standard OF
New Jersey into Cut Bank win tend
to generally stabilize markets and In
crease public confidence in the per-
manency Of the north Montana oil
fields.
Santa Rita owns 1900 acres Of OIL
and gas leases and fee land in uCt
Bank field in addition to 10000 acres
OF the Aloe Nose of Kelvin field. The
company has approximately IS pro-
ducing oil wells and three gas wells
two OF which gas wells are connected
by pipeline to serve the refinery and
one is used for field operations in the
south end Of the field. Included in the
are the famous Lander farm
which has produced upward of ST.
100000 worth of oil since completion
Of the first well in January, 1895.
Northwest Refining company's plant
west Of the town OF Cut Bank has a
Of $500 Dbl. per day. In
cluded in the plant is a Dubbs unit.
manufacturing gasoline under the
trade name Of Grizzly. This plan has
supplied fuel oil for the Great North
ern railroad since its completion in
1887 The company has 10 miles Of
natural gas lines in Cut Bank field
and six miles Of oil pipeline from the
Darling pool, in North Cut Bank, to
Toronto pipeline mains
In addition the company owns ap-
100 bulk and retail out
let's scattered from eastern Washing
on TO Havre, Mont, as far south as
Helena Included are bulk plants and
stations in Colfax. Wash, also Occur
i'Alene and Moscow, Idaho. All Of the
system is tributary TO
ines Of the Great Northern railway.
Tithin economic distance Of the re-
inery.
A second corporate entity wholly
'wned by Santa Rita is Santa Rita
Purchasing and storage company
which has been purchasing oil in Cut
Bank field as an additional supply for
he refinery which has been working
t capacity throughout the past year.
In addition to Its capitalization Of
100000 shares Santa Rita has an
authorized capitalization Of 5000
hares Of preferred stock Of 500 par
yhich has never been issued. There Is
o bonded indebtedness and the
has been regularly paying
ividends, a total Of 471 percent hav-
lg been paid to date.
Standard oil New Jersey is parent
ompany Of several Of the largest
perating companies in America, In
luding Imperial oil company Of
anada and the entrance Of Standard
Ito North Cut Bank is expected to
rive as step in solution Of the grow
~ problem Of supply for Canada.
tandard OH New Jersey has no active
or refining branch in the
ocky Mountain region.
Sterilization Of the market Is ex-
ected TO result from expanded op-
atoms by the new management, IN
lie light Of the expanding Canadian
arket, although no announcement
rs been made Of a drilling program
otherwise. Santa Rita has kent two
nd three strings Of tools at work IN
cent months and has been especially
lccessful IN recent drilling In tina
Darling pool. near the
anadian border. Santa Rita has fee
nds In its lease holdings. for the
ost part, with one 4.000-acre lease
ON the Blackfeet Indians. In the
nth end Of Cut Bank oil field.
The Aloe block Of leases was taken
two years ago, based on the geology