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Show : LTiniAitr WtYxm rs or urui QF.C 2 6 ;L'47 SALT LAX VALLE1 SMZLTKB PUCCI 'u trv xjlKe aixr arcs (HiKin Mt IM mImai nu U.M LEAD, corm iim H.GH GOLD (vet m) UNO (Mr 1M) ! 1IJB Features Mining, Oil, Financial VOL 18, NO. 39 i Salt Lak City, Utah, October 17, 1947 One Year $2.50 New Oil Test Oil Struck in Scheduled Shallow Well In Utah Area SALT LAKE City For At Cisco, Utah al months past it has been sever- re- ported unofficially that major oil companies planned to drill a deep test well on the Big Flat, west of Moab, as an offset to the discovery well drilled 22 years ago on Cane Creek dome on the Colorado river. This report is now verified by the Oil and Gas Journal, which carried the following story in Its October edition: Important Utah Wildcat Scheduled Tide Water Associated Oil Co. and Pacific Western Oil Corp. are reported preparing to drill an interesting deep test in Grand County, Utah, as soon as unitization, which is now in progress, is completed. A block of approximately 20,000 acres has been assembled in what is known as the Big Flat area. When the unit is approved, a test will be drilled in approximately This location: is some 15 miles northwest of a well drillin 1925 by Mided in west Exploration Co. which set off a big play on what became known as the Colorado River structures. It encount e r e d a flow of 2,000,000 cu. ft. of gas with 150 bbl. per day of 38 degree gravity oil at 2028 ft. The gas caught fire, and the rig which was on a narrow ledge on foe bank of .. the Colorado River, was destroyed. When the rig was rebuilt . and operations resumed, it flowed 350 bbl. per day before it was mudded off. A second show ft., was encountered .at 3627-3- 5 the oil rising 800 ft. in. the hole, and could not be lowered by bailing. This was followed by a third show which was cased off at 4976 ft with 4 -- in pipe. The hole was drilled to 5000 ft., and when attempts were made to raise casing and test, the pipe collapsed and hole .was lost. The drill had cut enormously thick beds of salt, and at first it was believed to be a salt dome, but flank wells and wells on other structures up and down the river disproved the theory. The oil was found in streaks of sandy shale in the salt beds. au-thorit- ive 12-26s-- -- Geologist Claims Well Not Guess Work Spotting Several months an illustration of the Major Oil Firm Shows Profit High Continental Oil Co. ago is expected to report earnings for the nine months ended Sept. 30 of over $5 a share. This would compare with $2.58 a share in the like 1946 period. Based on the earnings which are anticipated for the nine months, Continental could be expected to report $6.50 a share or better for all 1047. This would compare with $4.05 a share in 4 1946. The companys crude oil production continues to expand. It is understood to be running currently at better than 105,000 barrels a day. During the second quarter, average daily production was reported to have been 104,-0barrels, while for the period the average was 45 six-mo- nth barrels. 101,050 Sales of refined petroleum products, which were reported to have been some 20 per cent ahead of 1946 in the first six months of this year, have risen still further. They are estimated to have been 25 per Cent ahead of last year in the past nine months,-witAugust sales about 30 per cent higher than the like 1946 month. In the past, Continental has met its cash requirements through bank borrowings. Should it develop that additional funds might be needed in the future, it is believed the same procedure would probably, be followed again. . h Salt Production According to the reports of producers to the Bureau of Mines the United States produced 15,-132,- 145 short tons of salt valued at $44,816,498 in 1946 a 2 per cent decline in quantity from 1945. . Three types of salt contributed to the total as follows: almost 56 per cent was brine (salt content): 23 per cent was rock salt; and 21 per cent was evaporated salt. sub-surfa- ce geologic section of Vernal Oil Dome was printed in this publication. Since that time, Vernal Oil and Gas Companys test well has penetrated the formations into the Park City or Phosphoria formation. It it is interesting to note the accuracy of the geologists predictions as correlated with log of the well. He claims now that the petroleum geology is not merely haphazard guessing as many people seem to believe. In petroleum geology, the geologist should know if he has a closed structure for a trap for oil and gas and if there is a known oil and gas zone at a reasonable drilling depth under converage in the dome, anticline or plunging nose closed by a fault. If these conditions are present, then in wildcat territory Including information filed exists what is known as an with the Securities and Exchange H. L. Rath, gamble says Commission Howrecently was a filing wen known oil geologist. Mica Mountain Mines, Inc., by he ever, qualifies, petroleum Salt Lake City, wherein notifigeology is not an exact science cation was made that the. comand the drilling tools tell the pany was offering 400,000 shares final story. of foe common capital treasury . , ent Map Proves Correct The Vernal Oil section, illustrated above, was correlated and platted by Mr. Rath, with the aid of U. S. G. S. data, along the axis of the Dome, using formation dips and structural contours from a map previously completed. This work was done before the well was spudded in on July 14th of this year. From the log of the well die Shinar-um- p Conglomerate was encountered at a depth of about 96 feet and the bottom of this formation at about 150 feet, which is also the top of the Moenkopi formation. The top of the Shinarump was placed; in the section to be reached at a depth of about 200 feet Mr. Rath goes on to explain how geological theories are being substantiated by actual drilling and also gives some interesting information on Utah oil developments. Wait For Test At a depth of about 1085 feet a water sand was encountered in the Vernal well, the water rising and flowing over .collar of the casing. This should denote, says Mr. Rath, that the structure has (Continued On Page 2) , . Mica Mountain Yuba Making Mines Files Stock Issue Dredge T ry At Lovelock stock of the company. Included in the companys holding is property located in the Atlantic Gold Mining District, Fremont County, Wyoming. Total offering is listed at $130.-00- 0. . Underwriters will be the officers and directors of the corporation. Underwriting discounts and commissions will amount to 25 per cent. The net proceeds will be used to enlarge the capacity of the miy, to sink the present operating shaft to the fourth and fifth levels, timbering where necessary and equipping those levels with ' new tracks, pumps, pipelines, chutes, etc.; to erect several small housing units to accommodate married employees at the mine, thereby giving stability to the working crew; to pay all obr ligations of the company and to provide adequate operating capital assuring greater economy and generally to guarantee a larger, more profitable and consistent operation. Home: A place where a man is free to say anything he pleas- because no one pays the ghtest attention to him. S . LOVELOCK, Nev. The Yuba Consolidated Gold Field Dredging Company started drilling this week on the Eden Placers in American Canyon Mining District If sufficient yardage is .proven, a 20 foot bucket line dredge will be put in operation this year. Frank Smith is in charge of drilling ooerations and has four men employed. They, are using a new light mining keystone drill with the latest sampling equipment. Gerry Eden, veteran Nevada mining man. has been consolidating American Canyon District and doing testing and engineering work. As a result of his efforts. tb entire district known as the Eden Placers, has been taken over by Yuba Consolidat. MOAB, Utah An oil boom at Cisco is promised with the striking of high quality crude in a shallow well drilled four miles west of Cisco by Taylor & Taylor, brothers. The oil has raised over 400 feet in the hole, it was reported Tuesday. Inasmuch as only 41 feet of surface pipe had been set, the balance of the hole being open, operations have been stopped until casing can be run and a control head installed. (This report has been forwarded by L. L. Taylor, publisher of the Times Independent at Moab, Utah. Mr. Taylor is recognized for his timely articles on Utah oil developments. His article continues:) The Taylors built their own rig, a small standard outfit and spudded in about the first of August. The well is located on a state lease in section 32, township 21 south, and range 23 east. It is located a few rods north of highway 50, where the road to the Cunningham ranch leaves the highway. The oil, it is reported, tests 38 deg. gravity, paraffin base, and it is believed was encountered in the Ferron sand. This sand, called the Muddy in Wyoming, lies above the Dakota sand and from outcroppings in the surrounding terrain, the oil must have been encountered at about 1000 or 1100 feet. The Taylors have not given the depth of the hole, but admit it is above 2000 feet. The drillers state that before they drill any deeper, the hole will be cased to permit the installation of a control head in the event a flow of gas should be encountered. The well is located only 12 miles south of the Cisco gas field, where a carbon black plant was operated for a number of years. An interesting story about the Cisco well and the Taylor brothers was published in Tuesdays Grand Junction Sentinel, and is . as follows: Oil comThe Taylor-Stewa- rt pany hit oil at .Cisco Monday and 380 feet of the greenfth-blac- k fluid rose in the hole in less than 24 hours, according to the drillers. No well has been completed. Drillers Delford Taylor of Orchard Mesa and William Taylor of Pueblo have merely topped an oil sand. How much of a producer they can make out of the test. is not now known and wont be known for some time. As it sets today, four miles west of Cisco on U. S. 50, the test is primarily just a hole in the ground, and its dangerous. Only 41 feet of surface pipe has been set. There is no control head and no casing below the (Continued On Page 2) ed. American Canyon was worked in earlv days by several thousand Chinese and has a known million dolproduction of 10 lars. During the depression a laree number of snipers worked in the district, but this Is the first time the District has been consolidated and testing made for bucket line dredging operations. Silver Dollar Silver Dollars. August Income a little less than $60,000. Shaft expected' to reach 2700 level by end of month; ' . Meted Mining Industry of Utah |