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Show Virgin Field To Be Center Of Oil Development Diamond Oil Company Official Sees Opportunity For Big Developments In Local Oil Field The Virgin field situated at the entrance to Zion canyon, which has been recognized as a proven oil field, for several years, is at last coming in to its own. When it was first developed in 1907 on what was known as the Holohan Lease, there was no market condition con-dition to speak of for the product. Nevertheless, the discovery well drilled in at a depth of 519 feet created some excitement. This well came in on Section 13. about 30 ban-els per day. Other wells were drilled bringing in about 10 to 15 barrels each. The town of Virgin grew like a mushroom, thousands of people settled there. A refinery was built and- later abandoned due to the financial panic under Cleveland's administration. adminis-tration. This acreage in the field was all closed to Permit and no drilling of course could bo prosecuted, prosecut-ed, so long as this condition existed. exist-ed. Oil men left the field without any development for 10 years, the refinery and all equipment just rotted. Activity In 1917 In 1917 a new period of activity commenced. Another small refinery refin-ery was built, some of the old wells were cleaned out, shot and put on production, and while things were carried on in a small way, gasoline and coaloil were produced for the local market and some oil was used for fuel. The old refinery burned down and the present refinery owned by Die Diamond Oil Company was built in 1924. In this regard it is well to mention that in 1909 all lands not in good standing as placer oil claims were withdrawn and formed into Naval Oil Reserve No. (Continued on page eight) Virgin Field To Be Center Of Oil Development (Continued from first page) 7 by order of President Taft. The activities in this field were confined con-fined to only placer claims with all discoveries prior to this withdrawn. with-drawn. Therefore, a development was limited until these lands were restored to public entry, then under un-der the permit system. Practically no new development had taken place on any lands until the Diamond Dia-mond Oil Company came into the field in 1925. Through the acquisition acquisi-tion of the Virgin Placer No. 1 of 160 acres and the Dr. John T. White Permit of 2490 acres. At this point in the history of the Diamond Oil Company, who has been the major operator here in the Virgin oil field, special mention men-tion of the following must be made to remove from anyone's thought the idea that any disappointments disap-pointments in development in the field caused the Diamond Oil Company Com-pany to move out and permit things to stand. The true facts regarding the Diamond Oil Company's Com-pany's termination of operations in Virgin are given as follows: The Diamond Oil Company was greatly enthused about the prospects pros-pects of good production in the field and the establishment of a real company there. But prior to the commencement of operations at Virgin, the Diamond Oil Company Com-pany was already operating at Diamond Fork and the directors voted that inasmuch as finance was limited that they continue the operations at Diamond Fork and later return to Virgin when the market conditions warranted it. This time is now here, there is an increased population in this zone with a local market condition condi-tion to take care of at least 1500 barrels per day, also to maintain a real refinery with a cracking unit. New Company Formed The new company will be known as the Baker Petroleum Corporation Corpora-tion and will be financed separately separate-ly from the Diamond Oil Company by a group of selected men. about 25 of them, being immediate friends of the organizers of the new company. It is the plans of the Company to immediately institute in-stitute a drilling campaign to put down enough shallow wells, also clean out the wells already drilled to the Virgin sand at 560 feet. In 1925 this field was producing produc-ing from the old wells 165 barrels per day, so you can readily see that this fieid from its shallow-sand shallow-sand should produce from 200 barrels bar-rels per day and up this summer. Production in 60 days Harold Shewell. the manager, is contracting the drilling of these wells now and active drilling will commence within a week. He confidently con-fidently expects to have reached over 100 barrels per day production produc-tion within 60 days. Plans also call for drilling a well to the Co-conini Co-conini oil sand which should be encountered at 1300 feet. This sand is estimated at bout 60 feet thick and should produce wells of from 500 barrels per day and up. This sand is known to be productive pro-ductive as the structure is absolutely abso-lutely closed, the oil in the upper Virgin sand or Rock Canyon Conglomerate Con-glomerate proves this. There are still two other sands known to exist deeper, one of these is known as the Harrisburg sand often called call-ed the Virgin Dome sand. This should be encountered at 2300 feet. Also the sand encountered in the Escalante well at 3200 feet. These sands all carry oil. I A striking feature of this Virgin field is the great hurricane fault referred to as the largest displacement displace-ment of its kind in the world. Some engineers have advanced the "3 theory that the fault really created creat-ed the closures necessary to trap the oil so that there would be no possibility of migration. It is the belief of the Diamond Oil Company that these sands will all produce on the east side of the fault. Refinery At Virgin The refinery already built at Virgin is designed for 500 barrels per day and can now handle 100 barrels per day with a little remodeling re-modeling and repair. A small additional ad-ditional investment to install a cracking unit would guarantee this field taking care of a growing grow-ing market in Southern Utah. The plant will pay all refining expenses ex-penses on a thorough put of 25 barrels of oil per day. The plant is situated within a mile of Zion Park highway leading to the four national parks of Utah and Northern Arizona, namely: Zion Park, Bryce Canyon, Cedar Breaks, and the Grand Canyon of the Colorado. Thirteen miles from the Arrowhead Trail leading from the east to Southern California. There is a settled population of about 30,000 people. This plant could serve a tremendous tourist trade, traveling these noted highways high-ways so that an ever growing and permanent market is provided for the company's petroleum products. Gusher production is expected in the deeper sands, while there is already production in the shallow shal-low sands. Herein are a few figures: Twenty-five thousand dollars should cover all expense in making mak-ing the Virgin field produce conservatively con-servatively 500 ban-els per day. Figuring the price of crude oil at $1.25 per barrel, not to mention men-tion the money that could be made from refining, would guarantee an income of SlV.fi Of) nnr d;iv. or rW5 days per year, $228,225.00. This is just a beginning. Other companies now operating in this field are being financed by Eastern and Western capital There is, in all, a drilling program outlined of some 12 wells to say nothing of our program. Larue Holdings The Diamond Oil Company holdings, hold-ings, you will note, consist of at least two-thirds of the Virgin field. Some 2650 acres, while the field itself runs north and south between two ranges of hills. The Diamond Oil Company's acreage being in the center or on the apex of this monoclinal structure. In this issue is a geological geologi-cal report in .1 condensed form by C. W. Btiskirk, petroleum engineer, en-gineer, who it is said knowns more about this country than any oilier living m;ui. |