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Show VW Jet tfetoi of iftcAt Significance Vol. 28; No. 26 Oil and Mining WctW in The Salt Lake City, Utah, Friday, August 2? Utah Western Oil & Mining Acquires Placer Gold Mine The Board of Directors of Utah Assets as of present are Western Oil and Mining Co., Inc. has been spent for underhas completed the purchase of the ground development. $25,070.00 mining properties known as the has been spent for mill material Lee Placer Mine, located in Rock- and equipment not including man land, Placer County, California, hours. Proven gold and reserves are $1,965,362. 22 miles Northwest of Sacramento. For the total purchase price of $75,000 in cash and stock which of management purchased 51 control and inventory. Negotiations for the Lee Placer Mine purchase began June 1, 1957, and final payments as per argee-men- ts Utahs Paradox Basin oil boom were completed the 15th continues to reveive national atof Aug., 1957. day tention. Petroleum Week MagaPrior to the purchase the out- zine is series running a four-pa- rt put was 50 cubic yards a day, of developments in tht area, wit which was a oper- the latest article stressing the ation. Since June 1st additional road and development problems equipment has been added and It reports a number of companthe output has consistantly in- ies have optioned acreage near creased to 100 cubic yards a day, San Juan County, in still more additional equipment is Blanding, preparation for move of supply in transit to complete the volume houses to the area once a bridge output to 150 cubic yards. is built across the San Juan River Economics of 100 cubic yard for necessary connections to fields operation based on a recovery south of the stream. Its 125 miles as low as $10.00 for gold, by pro- from armington, N. M., to these ducts, aggregate sales etc. Esti- fields, the article notes. . mate profit for 27 day a month Texaco Star, publication of the operation will be $13,500 with an Texas Co., also stresses the road additonal 50 cubic yard increase, situation which it says contrithe monthly net estimate should butes to high drilling costs ($150,-00- 0 run $20,250. per well) and adds that as roads improve, the costs will decline. Its article stresses the Colorado towns which have profited from the boom says little of impact on Utah. A proposal: Why not seperate the Paradox Basin in parlance from the Four Corners. The bulk of the production is in Utah John E. Rouse, Denver, recently and 99 per cent of the Paradox was elected president of Utah Basin is in this state. Southern Oil Co., succeeding George T. Hansen, who founded the company in Salt Lake in 1921. Sparton Begin George T. Hansen Jr. was elect, ed vice president in charge of op- Drilling Operation erations, and De Witt Van Evera and M. D. 'Paine were renamed Spartan Mines Inc. of Utah and treasurer and secretary, respec- Nevada will start a large scale $32,-560.- 00 by-prod- uct Paradox Boom Continues Firm non-profita- ble Denver Oilman Named Head Of Southern Oil to tively. drilling operation on its uranium 10 Cents Paradox Firr Locates In $ Wayne CoT Paradox Production scheduled two more Sand Mesa area of ty, it was reported The firm filed noii. with the Utah Oil and u servation Commission for its No. 1 at 1,-9- 80 d. 4 Miles West of The Pure Oil Co. announced Wednesday the discovery of oil in commercial quantities at Big Flat on Dead Horse Point above the Colorado River 14 miles west, of Moab, Grand County. This verdict on commercial aspects of the wildcat discovery on the Mississippian formation was feet from the South line and vindication of the theories of ge660 feet from the East line, Sec- ologist Glen M. Ruby, who detion 9, Township 28 South and scribed his recent experiences at the area as 10 years of frustraRange 16 East. This is north of the present tion. Pure is thus the first operator (Federal No. 1) well which is to obtain a successful completion coring a drilling break at 5,641 feet in the Mississippian forma- job at the area. Earlier wells, tion at center of the northwest drilled by other companies on the quarter of the northeast quarter, Big Flat structure produced oil, Section 34, Township 30 South and but not in commercial quantities. Range 13 East. The Putnam-Smo- ot The well Big Flat Unit No. 1 wildcat will go about 4,000 319 barrels of 43.3 degree flowed feet in the Hermosa formation where shows of oil and gas also gravity oil in 24 hours. Production were picked up in the Federal was from perforations in the Mississippian limestone from No. 1. 7,694-7,72- 8 feet. The discovery is 14 Sinwest An offset in which Carter, of Moab in Section 14, miles clair and Richfield may partici- Township 26 South and Range 19 unit pate also is scheduled for the area East. It is on a 19,500-ac- re of the Federal No. 1. Location is shared by Pure and Glen Ruby now being staked by a survey and Associates. In addition. Pure has leases on 6,500 adjacent acres. party. Uintah County Gas Increases With Ute Trail Unit In Operation Extension of gas production in gas from the Wasatch. methods But the big Ute Trail unit of Uintah not in use Friat were and that time was Utah County, reported was stimulated. section not the day. Havenstrite Oil Cos wildcat, This will be the goal of the rewas gauged at working job on the Ouray No. 2, Unit 466,000 cubic feet daily from the located in Section 20, Township 9 South and Range 20 East. Wasatch formation between Sun is currently engaged in feet during an hour test. Gas rose to the surface in five preparing a new unit development program for the Ouray area minutes. and it is projected that upon Trail Ute the in Participants Oil Sun include approval of this plan by various developments Petroleum General Co., Corp., parties and the federal agencies Haveninvolved an ambitious program Co. Continental Oil and of strite. development of the potentially Frank Neighbor District geolo- huge gas area will be launched. gist for Sun at Salt Lake, said the that with Wasatch member in the wildcat could probably be brought to 'a couple of million cubic feet a day possibly more, if the past performance of stimulation of gas zones in the Wasatch section is a water-fracturin- g 11-X-2- 088 lease acquired from Lester Lee of Panaca, Nevada. g This was announced this week by Dr. C. F. Barnhill of Cedar City Utah, president of Spartan Mines. The properties have a exposed vein of ore extending for 250 feet. 1953 after 30 years with Stano-liiiSpartan Mines is also negotiat- guide. ing with Poulson Construction of The new producer is about two The new president pledged his Omaha, Nebraska on an operating active interest in the Salt Lake basis on its Iron Holdings on Iron miles south of the Havenstrite gas discovery and is independent, terming Utah Mountain, Iron County, Utah. located in the northwest quarter Southern an outstanding example has extensive hold- of northwest quarter of Cection Spartan of the solid that progress today ings bordering Columbia Steel 21, Township 10 South and Range can be made by an independent and Comstock Mining. 22 East. in the highly competitive struggle It is about 15 miles from the for oil. A worthy future goal would be recently completed gas producers to duplicate in the next 10 years Speeds San Juan in the Ouray segment of the Ute Unit. the high standards of success Trail Work which the company has enjoyed Development' Sun has an exploration goal in the past decade. The Texas Co. has speeded up of proving gas reservoirs in a Utah of Principal properties its development program at Aneth wide and broad belt of lenses in Southern now are in the Rangely field, San Juan County, with the Wasatch formation in the Ute Field of western Colorado and scheduled hike in number of ro- Trail Unit. The unit includes the the Garland Field of central tary rigs and new locations for oil Bitter Creek and Ouray prosWyomin. drilling. The firm has had five pect areas of this segment of the Uintah Basin. The company has additional in- rigs in the area. noOn Monday, Texaco filed Mr. Neighbor said that the rig terest in southern and central tices location seven of in of wells be moved from the Monwould Texas and Utah, Oklahoma, wildcat on to the old Ouray tana. Annual gross income of Township 40 South and Range 24 Utah Southern is around four mil- East at Aneth. In previous week, No. 2 wildcat drilled about four lion dollars and is derived largely it had filed nearly 10 other such years ago by sun. from sale of crude oil and oil field locations with the Utah Oil & Gas This well was rated at around Conservation Commission. half a million cubic feet of natural products. Mr. Rouse, who will make his home in Salt Lake City, Is a former vice president of operations of Standolind Oil & Gas Co. (now Pan American Petroleum Oorp.), domestic exploration and production affiliate of Standard Oil Company of Indiana. He retired in Oil Brings In Well ire water-fracturin- 11-X-2- 1H 83-X-- 9H 11-X-2- 1H Utah Ranks High In Oil Drill Activity Some 54 rotary rigs were oprating in Utah during the week ended Aug. 5, making the Beehive State about the seventh or eighth in the nation in such basic activ- ity in the petroleum industry. (Utah has been running neck and neck with Colorado in this regard during the last several months.) with some Employment-wis- e, 17 men per operation on a rotary rig, the boom in oil exploration in Utah means that some 1,000 persons are directly at work in actual well drilling. This does not, of course, include supply company, geological, land geophysical, pipe line and transportation features of the discovery, drilling and production of oil and gas. 24-ho- ur Moab Ray Kelly, exploration vice president of Pure at Chicago, said velopment would depend on two factors: 1. The result of sustained pumping test over a period in establishing rating of the wild30-d- ay cat. 2. Available markets for oil in the Salt Lage refining district. Pure is discussing oil sales now with refiners at Salt Lake City, Mr. Kelly said. The well has been shut in for lack of available storage at the field. And additional tanks must be erected before the producion capacities of the producer can be rated. We plan to truck the oil from the Big Flat structure to Thompsons, from which point it would be shipped by railroad tank car to Salt Lake City on the Denver fe Rio Grande Western Railroad, Mr. Kelly said. We are very pleased and highly gratified at our success in Utah, Mr. Kelly said. He added that the completion job on the Big Flat No. 1 was quite expensive. The flow of 319 barrels of oil obtained on testing on Aug. 15, 1957, the well flowed 168 barrels of oil in 7 hours. There is no formation water in oil produced and connate water (water droplets existing in place with the oil) is very small as low as 0.3 per cent. Aside from the economic and commercial importance to Utah and Grand County, commercial discovery of crude oil at Big Flat marks a most important geological development in the north end of the huge Paradox Basin. This well is apparently in the Leadville section of the lower Mississippian formation. Geologists note that only a few wells have penetrated the Mississippian in the boom on south end of the Basin in San Juan County. Thus an entirely new prospect formation is opened in the basin which extends nearly 300 miles from the Four Corners to Green River, Emery County. Major oil companies and independents have been rapidly leasing in all areas in northern parts of the Paradox Basin during the last six months. New Park Sails To Tooele Area New Park Mining Co. is launching a geophysical and geochemical prospecting program in the Ophir District of Tooele County on claims of the Silver Standard Mining Co. and the National Treasure Mining Co., both of Salt Lake City. Clark L. Wilson, New Park vice president, said the probe along the Lakes of Killamey fault is for base metals. New Park recently acquired operating rights on five National Treasure claims and previously had announced its Silver Standard deal involving 30 claims belonging to that firm. |