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Show flat of iHcJt Vol. 28; No. 32 c in?.nrrs!U2 !fDAttV LlliU.'.tYr1 iefHificance in The Salt Lake City, Utah, Friday, October Oil and U -- 8 54-barr- el Group Recesses Aneth Hearings Utah Oil and Gas Conservation Commission recessed the controversial hearing on the spacing of oil wells at big Aneth Pool in San Juan County. Sessions will start again on Nov. 1, 1957, according to C. R. Henderson, Vernal, chairman of the commission. He said that in the interim, contending parties would file writ ten briefs much of which, it is hoped, will answer questions posed by commission members and staff. The state is principally concerned with establishment of the most adequate and efficient drainage of oil from the field and with the amount of oil which might be left (uncovered) in the field or by various paterns of spacing HenderMr. methods proposed, son said. He said there were conflicting answers as to what point in the history of development of the field that these recoveries could be made. The agency is hearing a petition of Texas Co. and others for one well to each 80 acres at the field. Shell Oil Co. and others seek spacing on a 40 acre basis. The oil companies were also asked to submit evidence on what effect a secondary recovery pro gram would have on spacing plans at the field. He said Shell testified that a minimum of 40 acres was necessary for recovery of the maximum amount of oil. The Texas Co. gave no information on this score at this session, he said, as it was not conclusively known at this time what the effect would be. Mr. Henderson said he under rftood that more oil could be recovered by secondary methods than primary methods. This means that an estimate of some million barrels in place at 182 the field on a primary basis would be increased to nearly 400 million barrels when secondary recovery is considered. 10 Cents fit Carter Wildcat Boosts Utah Resource Hopes . o 11. 1957 TivuiiiLLlVillC Carter Oil Co. this week reported flow of 54 barrels of oil in seven hours at its Tohonadle Pool wildcat in San Juan County, Utah. Its Navajo Tract 23, No. 1, is an apparent confirmation of the pool established in drilling by Shell Oil Co. last summer. Shell also drilled an offset to its discovery wildcat but did not announce results of testing. Carters tract 23 is about one mile southwest of the original pool opener. The company continues to carry forward completion work with hope of increasing well potential considerably. The Shell discovery flowed 40 gravity crude through choke at the rate of 1,480 barrels daily. - After treatment of perforations feet with 500 between 5,734-2mud of acid, Carter gallons swabbed the well into a rate in seven hours. This is equivalent to about 180 barrels daily. The firm is now running tubing in its completion effort. This discovery area is the farthest west of any commercial oil production in the Paradox Basin. The find stimulated interest in bidding on Na- - fold" Lead-Zin- c Case Le' nc Men Offered Aiu Tariff Measure Subject President Dwight The announcement from the Of Resolution er threw a ray of hope to the State Department dealt with a tracts to be offered D. Eisenhow- vajo Tribal later this year and in early 1958. In addition to Shell and Carter, Atlantic Refining Co., El Paso Natural Gas Co. and Sunray Oil Co.s hold acreages in the vicinity of Tohonadle. Location of Carters Tract No. 23 is 660 feet from the north line and 660 feet from the east line, Section 2, Township 42 South and Mid-Contine- nt At a special meeting called Tuesday evening in Party Headquarters in the Newhouse Hotel, executive officers of the Republican State Central Committee adopted a resolution calling upon the U. S. Tariff Commission to take immediate action to relieve the depressed state of the lead zinc industry. industry Tuesday in the form of a letter to the U.S. Tariff Commission ask-nit to expedite action on pleas of the industry for relief from lard-presse- d lead-zin- c g he dumping of excessive amounts of foreign-produce- d metals in the United States. A speed-u- p of the action was asked by the President. This request is in line with a previously announced pledge of the Eisen- The resolution follows: Whereas the Republican Party hower administration that it in convention August 21, 1956 at would act to seek action quick San Francisco, California, adopted for the industry after the collapse as part of its platform the fol- of an effort in the last Congress lowing: to obtain relief. "Barriers which impede on a The State it was gradual, selective and reciprocal announced inDepartment, Washington, will basis, with full recognition of the not oppose any recommendations necessity to safeguard domestic on lead and zinc which might be enterprises, agriculture and labor forthcoming from the Tariff Comagainst unfair import competition. mission. That is to say, the departWe proudly point out that the Re- ment will not intercede against publican Party was primarily re- imposition of quotas if such were Four Corners Pipe Line Co. has sponsible for initiating the escape the decision of the Tariff started laying feeder lines in the clause and the peril point proAneth oil district of Utah for its visions of law to make effective 50 million dollar, 70,000 barrel-a-da- y the necessary safeguards for crude transmission line to agriculture, labor and business. We pledge, faithful and Los Angeles. administration of R. G. McIntyre, president, also expeditious announced contracts had been let these provisions. (p.26) Whereas there does now exist for crossing of the Colorado River near Needles, Calif., and for three an emergency In the American lead-zin- c initial pumping stations. mining industry, and Earl M. Henderson, Denver, Whereas legislation designed to R. H. Fulton Co., Lubbock, Tex., will build the underwater crossing correct this situation now pend- president of Texota Oil Co., reof the big river. A Red Mesa, San ing in Congress has been denied ports Texota has increased it oil consideration production to 3,595 barrels and Juan County, pump station will the expeditious natural gas output to 9,995,000 cube constructed by Station Con- which the industry needs; and Whereas the Democrat Chair- bic feet daily during the fiscal struction Co., Houston, Tex. The station is near the Four man of the House Ways and year ended May 31. Corners and south of the San Means Committee on August 16, Mr. Henderson, formerly of Salt Juan River. Engineers Ltd. got by letter to the President, gave Lake City, became president of the contract for a station at Cam-era- notice that the House Committee Texota after the merger of Ute Ariz., and Macco Corp., Par- which constitutionally must act Royalty Co. which he headed in amount, Calif., will build a Twen-tynin- e first on tariff matters would not 1955. act this year; and Palms, Calif., Station. Mr. Henderson noted in the anconWhereas the President on Oc- nual will Mesa station The Red report to stockholder of sist of a transit building housing tober 8, 1957, in fullfillment of Texota the firm had . 1,241 net switching gear equipment, three the Republican Platform pledge barrels of production and 4,856,-00- 0 units, with 900 horse- has urged the Tariff Commission cubic feet of gas daily during pulping for relief the motors driving centrifugal to take speedy actionlead-zinpower previous fiscal year. inc fully on the hard pressed pumps. All stations will bemicro-wavIncome accounts rose to $205,-38- 3 e dustry and its working men after automatic and operated by as against $168,143 in the preradio service from the Los Congress had failed to enact re- vious year. However, the campany e line. quired legislation. Angeles end of the a net loss of $550,500 for Whereas industry did initiate reported 1956-57 the year. This compares escape clause proceedings on the with an earned deficit of $737,924 27th of September, 1957 at the beginning of the fiscal peNow therefore the Utah State Range 21 East. Shells discovery wildcat was located 660 feet from the south line and 1,980 feet from the east line of Section 35, Township 41 South and Range 21 East. Feeder Line Plan Laid For Pipeline an , 750-mil- New JJasin Area Reynolds Mining Co.s Hatch Unit No. 4 well in the Paradox Basin, 12 miles north of Aneth Pool in San Juan County, Utah, has hit oil. The well is in a new area of Paradox Basin and is being drillfrom Three ed as a farm-ou- t Co. Gas Natural States Four hour test between 5,960 6000 feet saw gas rise to the surface in one hour and 20 minutes. It was rated at 12,950 cubic feet a day. Recovered was 90 feet of 90 gravity free oil along with additional feet of gas and drilling mud-cu- t free oil. There was no 40-pl- water. Initial . pressure of 20 repounds per square inch was corded with a final flow of 5( pressure after one psi. The shut-iwas 12,145 half hour psi, and still of this conclusion a building up test. phase of the E. A. Jenkins, executive vice president of Three States, Dallas, flow n Tex., said that Reynolds is running casing and preparing to com plete. We hope to get at least a small commercial producer. Republican Party through its executive officers (a) reaffirms its support of the pledge made in the 1956 Republican Platform, (b) compliments our delegation in Congress for the fine job they have unitedly done in inbehalf of the lead-zin- c dustry, (c) praises the President for his support of this cause and his request that the Tariff Commission expedite its consideration of this matter, and (d) urges the Tariff Commission to recognize the plight of the people and the area affected by this lead-zinemergency and find cause for extending the requested relief. ' The resolution was signed by Thomas G. Judd, Salt Lake Chair- ers. He called attention to the continuing need for imports of certain minerals and metals and indicated that any United States tariff action that might be taken to relieve serious injury to U.S. producers would have the primary imports and domestic production. On the state level Republican party leaders passed a resolution concerning the matter. The text of the resolution appears elsewhere in this issue. Texota Oil Co. Reports Hike In Gas, Oil Output n, Yields Oil Find joint communique by the trade officials of Canada and the U.S. which stated in part: Canadian ministers expressed concern over the effect on Canadian producers which would result from any action by the United States to raise duties on imported lead and zinc. The United States member explained the situation confronting their countrys domestic produc- to drill: five wells in .Weld and Morgan counties, Colorado, this year. A 4,500-foo- t wildcat will be drilled by Texota on a e block in Wheatland and Golden Valley counties, Mont, during the fiscal year. Texota has 65,395 net acres under lease in Utahs Paradox Basin and is currently participating in a three well wildcat program being drilled by Pan American Petroleum at Elk Ridge and a three well program at Dark Canyon (Norhtwest Elk Ridge) by Sinclair Oil & Gas Co. 4,800-acr- The firm has royalties in 5,200 acres operated by Shell Oil Co. and Three States Natural Gas Co. in west Aneth extension where five wells are producing on this segment of the San Juan County field. riod. The firm said that discovery of The company recently complet- oil by Pure Oil Co. in the Missis-sippia- n ed successful sale of $650,000 in formation at Big Flat in 6 per cent convertible deben- Grand County, 'points up the tretures, raising $750,000 net to the mendous, untouched potential of firm.Of this amount, $376,400 will the formation Mississippian in the be used to repay short term bank north of the Paradox Basin. part loans and' about $175,000 for den Texota forecasts a great velopment of oil fields and payment of rentals. in exploratory drilling in This will leave about $200,000 the general area of its holdings in for corporate purposes. northern San Juan County, the The company, which drilled 26 report relates. The Aneth iFeld wildcat wells with four new dis- trend is now 12 miles long and coveries last year, plans to drill four miles wide, with reserves esfour new wells at its important timated at more than 260 million Goffena pool opener in Mussel- barrels the report states. shell County, Mont., and four wells in the J sandstone discovc ery at No. 2 Wilson A wildcat in Continental Spots Test Banner County, Nebr. Continental Oil Co. has spotted Expansion of the companys exploratory drilling program with a confirmation test of its big pool particular emphasis on the San extension at White Mesa Field Juan Basin of New Mexico, the San Juan County. man, Mrs. Ora J. Lewis, Logan, Denver Basin in Colorado and The firms Navajo B-- 2 is located Vice Chairman; Jack H. Swenson Nebraska, Powder Basin of Wyomin southwest quarter of southeast Spanish Fork, Secretary; Carl C ing and Paradox Basin of Utah is quarter of Section 32, Township Gaskill, Ogden, Treasurer; Jaren scheduled. to finds 41 South and Range 24 East. Last year, in addition L. Jones, Salt Lake, Nationar Texota The pool extension was rated Committeeman and Mrs. LaRue in Montana and Nebraska, more than 50 barrels of oil an at foot B. Jex, Salt Lake, National Com discovered a 12,600,000 cubic 1 Ricker hour and was two miles southmitteewoman and Nicholas G a day gas well in its No. west of nearest production at Morgan, Jr., Salt Lake, Finance wildcat, Sergewick County, Colo., Mesa. White und has entered into agreement), Chairman. accel-leratio- |