OCR Text |
Show Mountain Fuel Notes Increase in Income Mountain Fuel Supply Company's Com-pany's net income for the first quarter of 1959 was 20 per cent above the comparable period in 1958, it was reported this week by W. T. Nightingale, company president, at the annual meeting of MFS shareholders. "If our earnings continue at their present rate our net income per share should approximate $1.80 for the year compared with $1.57 last year. "Last year, in my opinion, was not a good year, and there is a reason for it. As was pointed out in the annual report, we had a business recession during the year along with some rather warm weather. Warm years are not unusual, but last year is the first time we had one coincide with a recession. "Although 1959 weather thus far also has been in the warm cycle, the absence of the business recession is showing up mark- edly in the earnings of the company com-pany at the start of the year." Mr. Nightingale said Mountain Fuel Supply Company expects to ad about the same number of customers to its system this year as it did in 1958. This would mean an increase of about 11,000 for the year. Plans for an extensive drilling program for 1959 were outlined by M. M. Fidlar, executive vice president. A report on the com-, pany's distribution activities was made by J. W. Allen, vice president presi-dent in charge of distribution, while J. T. Simon, vice president in charge of exploration, producing produc-ing and pipeline divisions, outlined out-lined plans for new pipelines which are pending Federal Power Pow-er Commission approval. Most of the company's 1959 drilling program will be concentrated con-centrated in southwestern Wyoming. Wyo-ming. Wells in which Mountain Fuel Supply Company has some interest are being drilled in 7 different areas at the present time. "Much of the company's area of interest is now extremely active, ac-tive, insofar as leasing and exploration ex-ploration are concerned. As a re suit, an operator is seldom able to assemble a solid block of leases, and joint operation or unitization with other operators is necessary. Consequently, the company has entered into several sev-eral unit agreements in order to get some of its leases tested. "At present, the company is participating in 24 approved unit operations, either producing, inactive in-active or drilling; five units to be drilled in the near future, and seven proposed units. Thus, in 1959 we may be participating in 36 unit operations." MFS owns, controls or has a part interest in oil and gas leases covering about 834,000 net acres of federal, state and patented lands in Wyoming, Colorado and Utah, including producing acreage acre-age and leases committed to federal fed-eral plans of unit operation. In a subsequent question and answer period, Mr. Nightingale said some 80,000 acres were held in the Paradox basin in Utah's San Juan county and that MFS, in conjunction with General Petroleum Pe-troleum Corporation, expected to drill a wildcat well there later this year. "The company's drilling record for the past 10 years shows that we have discovered one new field for every six wildcat wells we've drilled. Thsi compares to a national average of one to nine. "In 1959, if we get six wildcat areas drilled, we should discover a new gas field," he said. Mr. Allen reported the addition addi-tion of four new towns and 11,-103 11,-103 new customers to the com- pany distribution system during 1958. Customers totaled 155,144 at the end of the year. r -i |