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Show UeM 4'ce in ftteJt The Oil and IJUtting World" , Vo: L28; 7 No. 11 Salt -- ' H. Friday, May 10 C 17, 1957 Aif'V Radorock Agrees On Pac To Operate Uranium MiT Radorock Resources, Inc., today entered into an agreement whereby it will operate a uranium mine and other properties in the Gas Hills area held by Ran-Re- x Oil and Mining Company. The agreement was announced in Salt Lake City by R. W. Ney-mapresident of Radorock, and Harvey R. Feller of Bountiful, Company. president of Ran-Re- x Under terms of the argeement Radorock will be the operator of the mine and claims and will Comshare profits with Ran-Re- x is venture third the This pany. into the Gas Hills uranium holdings by Radorock within the past month. n, i er Mesa Uranium, Inc., i function Colo., reports In addition to this c operation, commercial been found on four otht, of claims held by the Ran-i.- . Company and included in the tansaction. Spme of the acreage included in the transaction has hot yet been explored. Mr. Neyman said that the open pit mine would continue to be operated and production expanded. He said that drilling crews would be in the area for Radorock within thirty days to further delineate the other ore discovered to date. The Gas Hills area is one of the most active new uranium areas in the nation and the Ran-Reproperties are among the Included in the argeement are most promising in this field, Mr. 424 claims approximately 50 Feller said. miles east of Riverton, Wyoming Radorock Resrources, Inc. is a An open pit mine, from which ore fifty-twhas been shipped for more than per cent owned subsida year, is being operated on one iary of Federal Uranium Corporation. Federal will have an opgroup of four claims. portunity to participate with RadShipments currently are limit- orock in this venture, said Mr. ed to 600 tong a month by quota. Neyman, who also is president of As facilities are expanded in the Federal Uranium Corporation. area production from this operatMr. Neyman said that the transion will be likewise expanded, was in line with Radorock action Mr, Neyman said. announced policy of earmarking Some ore is stockpiled now at f of funds for developthe mine and an additional ment of new holdings and one-hatons of ore has been blocked of operating income from out by limited drilling, accord- the Radon Mine for dividends. ing to Mr. Feller. Ore shipped to date averaged approximately 0.20 per cent U308, Mr. Feller said. x o . w ... one-hal- 15,-00- 0 Natural Gas Hopes nth Profit For Firm lf In South Emery CojLVj is of $32,500 for the six English Oil Co. and American ths ended Feb. 28, 1957, cornPetrofina Corp., apparently have ed with loss of $69,000 for the established what may be com.ne period a year ago. mercial produciton of natural gas The earning are after royalty on the Ferron structure of southand haulage deductions, said Al- ern Emery County. The Wasatch Plateau area dislan Simpson, Beaver Mesa pres. covery has been tested at more The improved financial posi- than 1,545,000 cubic feet of gas 2 tion results from shipment of and about 80 feet of pay in two tons of. average grade ore seperate Ferron formation benfrom properties in the Gateway ches has been found, said Robert Mining District of Colorado and Minton, Rocky Mountain manUtah. This compares with ship- ager for American Petrofina, an ments of 8,192 tons of 0.40 U308 affiliate of a Belgian oil firm ore in comparable 1955-5- 6 term. operating on worldwide basis. 24,-58- Zinc Trips To 12 Cents, Gut Harms Producers Price of zinc was cut cent obviously a result of the world 1 a pound, East St. Louis, Mo. base, oversupply of zinc. I guess Washington doesnt this week. Quotation is now 12c a pound. The reduction was a need a lead-zin- c industry, he serious blow to the underground commented. mines in the westHe' estimated that the blow ern states. wouldnt be as hard on the Chief, And, . coming as it . did in one. largely .because weve, already fell swoop, raised among some had it operators the question of polit(The firm is mining only from ical action within the industry its upper levels at present on a which is demanding tariff- - pro- reduced basis. Last year, pumps bent were pulled because of rising tection from a world-trad- e costs of operations from the main Republican administration. It knocks hell out of us, com- ore body in the Chief No. 1.) mented J. William Stoner, secreMr. Fitch added there are even Mines United Park some of City tary big consumers who believe on loss a which can we Co., live forever in this counreported 1956 operations as it was. on try foreign produced lead and Well, that cleans us out," was zinc or so I was informed at the the earmark of Clark L. Wilson, recent Zinc Institute meeting in vice president of New Park Min- Chicago. ing Co. Mr. Fitch reduction New Park, which also reported would cost figured the the Chief $1,000 a a loss in 1956 from Park City month. The has been recompany district oprations, is now just porting earnings losses. managing to squeeze by, said Mr. Wilson. A spokesman for United States Smelting Refining & Mining Co., said he could make no statement in the absence from the city of Oscar Glaeser, vice president of western operations. I can tell you one thing. We dont like it, he added. Carter Oil Co.s McElmo Creek Cecil Fitch Jr., president of the Chief Consolidated Mining Co., in San Juan County has been testEureka, said the reduction was ed for equivalent of 1,109 barrels of 42 degree gravity oil in pay in a commercial discovery 1 miles southwest of Aneth Pool. lead-silver-zi- nc . . . Sinclair Continues City Drilling at San Juan United Park Reports Net Loss Sinclair Oil and Gas Co., is continuing its development of oil in the new Paradox sector of "United Park City Mines Co., the Boundary Buttes Field, San reported a net loss of $43,785 for Juan County. the first three months of operThe firms Navajo No. 3 will be ations at its Park City District drilled in southwest quarter of properties. (Utah) of Section This loss compares with a net the northeast quarter and 43 South Range 15, Township loss of $33,642 for the same 22 East. quarter a year ago. The figures are before depletion It will seek production at about allowances. 4,750 feet in the K zone of the Officials noted that the loss Paradox. occurred despite an increase in gross operating revenues resulting largely from higher output - lead-zin- c . of ore. Ore sales for the 1957 quarter amounted to $637,421. This compares with ore sales of $552,174 for the 1956 quarter. Total income the quarter just completed was $643,491 as against v $579,800 last year. Operating expenses during the intervening 12 months however, increased from $602,850 to $678,-20- 9 for the 1957 period. During the 12 months term, the companys net working capi tal dropped from $1,047,935 on March 31, to $910,749 March 31, 1957. United Park City in recent years has been conducting a valiant exploration program with the aim of increasing ore reserves. AH its earnings have been spent in this drive. Without the addition of reserves, the future of the mining operation would be dim Knapp Tells Plans For Gas Drilling Knapp Uranium Co will drill another gas well in conjunction with Sundown Petroleum Co., on the holdings over near Grand Junction, Colorado. Knapp brought in a gas well on the 1,162 acre lease held by Sundown last week. The well is estimated at eight million cubic feet a day. This property lies between two areas which already is producing and near two gas pipelines, Clyde Knapp, president of Knapp, says. How many wells we drill on this property depends on what the drilling practice is on oil and gas land in that part of Colorado Mr.Knapp said. Rf Garter Tells of Sari Juan Tests Petrofina has a joint exploratory effort in this area with English, a Salt Lake independent. Mr. Minton said the well, now being drilled with cable tools, had opped the Ferron at 600 feet. 3roductive gas sands were found between 625 and 645 feet. The gage at this point with 18.2 pounds was 635,000 cubic feet of gas a day. The formation was hard and n tight in drilling to 700 feet. 700 and 764 feet, a porous sand contained gas again was picked up. This constitutes a big middle member of the Ferron, so far as we can establish, said Mr. Minton. Between 76 4and 770 feet, the drilling again encountered hard, silty sand. At 77 Ofeet total depth, ;he entire column of the well was again This resulted in a flow of cubic feet a day of natural gas against a 32.2 pounds a square inch back pressure. The gas has not been set on fire, largely because of problems occasioned in drilling with cable tools. - ' However, it has a sweet smell and undoubtedly is combustible, Hr. Minton said. The BTU Brit-s- h Thermal Unit) is being taken n analysis by a laboratory, the Petrofina man said. Core analysis would be of great interest to petroleum engineers. The two companys have 23,800 acres under lease on the Ferron structure. In this they share a 50-- 5 Ointerest. Drilling is continuing in hard, silty sandstone below 770 feet. The well has a 2,000 foot total depth objective. Should sufficient commercial gas be developed in this prospect, the firm intends to drill a confirmation well utilizing rotary tools with gas from the present State No. 1" as circulating and drililng medium, rather than rotary mud. Be-wee- re-teste- d. Location of the English-Petro-fin- a prospect is in the southwest quarter of the northeast quarter of Section 22, Township 20 South and Range 7 east. Para-dox-Hermo- sa PeruMining Co. This appaentily validates large segment of Superior Oil Halts Operation Company of California leasehold and opens intensely important , with the East Desert Peru Mining Co., bowed to correlation 4Vz miles to the Creek Pool pressure of a dropping zinc mar- southeast. only ket and announced plans to close down opera tionss. Carters Well in the north Vice President Joseph Taylor west quarter of .the northwest said: We regret very much that quarter of Section 8, Township we must close down our opera- 41 South and Range 25 East saw tions and terminate employment a test between 5,466-5,56- 0 feel. at both the Hanover mine and Gas rose to the surface in four the concentrator as Deming. minutes and oil in 14 minutes shutdown will said the Taylor Oil flowed during a two hour stay in effect as long as the market price of zinc remains be- interval through a 58 inch chock. Initial flow pressure was 805 low costs of production. Total labor force at the mine pounds per square inch and final flow, 1,580 p.s.i. Bottom hole shu' and the mill is 110. in pressure was 2,120 p.s.i Raymond D. Sloan, Carters division manager at Denver, also announced location for a third test of the Bluff Unit in which Three States Natural Gas Co. has wildcat interests. The 6,100-fowill be 585 feet fro mthe south line and 500 feet from the east line, Section 26, Township 39 South and Range 22 East. ot YOUKlSHAKl anai miwnniiia. KSSSSKBlHDaiO |