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Show W' 's . f'. a V. f N s 4, k. - 4 fc . ' rimm VoUNo. 39 lMf - a November 24, 1969 25 Cents per Copy M Judge considers Texas Gulf ruling Chief Judge Willis Ritter, U.S. District Court for Utah, has said he will give additional thought before determining if damages awarded against Texas Gulf should Co. Sulphur be considered a class action. A memorandum decision issued by the judge Oct. 17 held the firm responsible for damages suffered by three groups of stockholders who sold stock shortly after Texas Gulf issued a press release April 12, 1964, minimizing the importance of Canadian mineral allegedly discoveries. Damages were ccomputed on the basis of the difference between funds received in sales and the average high ($50.75 per y share) of the trading period after April 16, 1964, when another press release verifying the richness of the ore find was issued. Calvin A. Behle, Salt Lake City, and Orison S. Marden, New York City, attorneys for Texas Gulf, argued that it would be unfair to declair that plaintiffs under the same circumstances should qualify for awards because Judge Ritter ruled trial concluded May 3, 1968 that it before the non-jur- y would not be a class action. non-jur- y 20-da- Abraham Pomerantz, New York City, principal spokesman for the attorneys seeking a class action ruling, contended that it would be relatively simple and would serve the ends of justice for other stockholders damaged by the fraud on the market to enter the Utah case rather than waiting for similar litigation in U.S. District Court for the Southern District of New York. Oil bidders reconvene for Alaska confab ANCHORAGE, Alaska Many of the same oil men who assembled in Anchorages Sydney Laurence auditorum in early September for Alaskas $900-millio-n North Slope lease sales were there again Nov. 13. The oilmen were on hand for a state hearing to seek information on which to base field rules for development of Prudhoe CLASSIC MINING CORP. Vice President Cloyd Hepworth indicates area on Ohio map where the Salt Lake City-base- d mining company owns producing oil wells. Firm gave details of farmout on Union Pacific property in Carbon County, Wyoming, at a press conference last week. Classic has the farmout from Pan American Petroleum. Bays massive oil reserves. Discussed at the meeting were Atlantic Richfield identification of two no dope previously Co. of its North Classic Dialing explains I? an Am drolling pad Standard Oil of Indiana, has the option rights on 1,920 acres agreed to spend $24 million on of Union Pacific land in Carbon leases and exploration and the next three County, Wyo., by drilling two development over wells on its own property in the years on the property. Classic is the first corporation area, the company has . to be given a farmout on the announced. rlaggir has been awarded property. The company must drilling rights in a farmout begin drilling its first well on or agreement with Pan American before Jan. 1, 1970. Petroleum Co., who hold the During a meeting at the lease on 7 million acres of Union Rodeway Inn in Salt Lake City, Pacific Railroad Company land the company described its stretching across the states of operations in Ohio and the Utah, Wyoming and Colorado. Wyoming property. The Classic farmout is located Pan American, a subsidiary of Classic Mining Corp. will earn - on the edge of the Hanna Basin which has several large producing oil fields around its edge. In drilling the two wells, Classic will earn the option rights on the 1,920 acres which must be executed within 90 days after completion of the two wells. Union Pacific has retained 25 per cent of the development rights on the property, along with royalties on production, Pan American has retained a royalty and override on their leases. Slope wells as probably new field discovery wells. If the two wells are new field discoveries, theyll give the North Slope four oil fields, including the original Prudhoe Bay find and ARCOs Ugnu No. 1, more than 50 miles . northwest of the nearest Prudhoe Bay well. The state agrees Prudhoe Bay and Ugnu are new fields but seems inclined to regard the other two wells as part of Prudhoe Bay field, perhaps new pools. Millions of dollars ride on the outcome of the debate. Leases with discoveries pay only 5 per cent royalty for the first 10 years rather than the normal 12.5 per cent. Depending on production, the difference in royalty could amount to many millions of dollars. Also discussed was the question of well spacing. Most operators seem to feel spacing wider than the traditional 160 acres one well to' each 160 acres is warranted, particularly in view of high costs of drilling on the slope. State spokesmen mentioned the possibility of 640 or even higher spacing for Prudhoe Bay. flying Diamond testis mew well Flying Mineral announced tests of its Diamond Land Corporation initial & has completion Flying-Diamon- d Ute Tribal No. 2 oil well. The well, located in Section 8, Township 1, South, Range 1 West, Uintah Special Meridian, Duchesne County, The zones perforated in the drilling include the zone that flowed 154 barrels of oil at the surface in one hour during drill stem tests, Mr. Sprouse said. The zone is higher in the well and will be tested later, Sprouse said. Mr. Sprouse stated that Utah, although substantial work of oil at remains to be done in produced 1,160 barrels a rate of 43 barrels per hour in its first 27 hours of continuous swab testing, according to Gary F. Sprouse, company vice president. completing the well and that establishment of a reliable production rate will require an extended period, the well promises to be a large producer. ' |