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Show M m i HWP Wr - - ''' "l , - - jtf r 1 lj sN , , j w V'ij r'f - K 111 xrMMpw.. '& L ,w ' 4 i I, i",55'Vfe'i 3t:& S' r ft . &&. r ' ' I x J , rPiV, ', rfl fa; 'mPfH !i t II ifAt",. tfrSS 4 k' & Oil drilling and oil product- ion is lagging in Utah. But increased leasing and new prospects indicate a resurgence. fc Surge of Leasing in 1976 Hints Oil Drilling Recovery 1977 17, April Ijjke all I N M The bicentennial year was not a winner for Utah as far as oil was concerned. Production fell to 35.4 million barrels worth $306 million compared to 40 million barrels worth $348 million the year before. The daily average fell to 94,000 barrels, considerably below the 109,600 barrels the year before, according to Carlton Stowe, minerals specialist for the state of Utah. But the industry is not noted for despair. Taken Under Lease Thousands of acres were taken under lease last year particularly along the Hingeline and Overthrust plays indication that those in the petroleum industry are believers. Seismic crews have been sounding out the underground formations from the north to the south borders of the state. The past year saw another record for deep drilling in the state an effort, which incidentally, yielded nothing and serves as an example of the enormous costs capital petroleum companies have to sink into the ground to get anything out. The well was the No. 1 Cook-three miles east of the Bridger Lake Field near the vicinity of Flaming Gorge. Phillips Petroleum Co., developer of the deep Bridger Lake Field, began the well in June of 1974 Colorado Lnterstate Gas took over operations in 1975 at 15,412 feet and finally brought the well to total depth of 21,382 feet C Old Story was an old story for Phillips the who had put near prcv lous record holder $5 million into drilling the nonproductive No E to 20,450 feet in 1974 on the hingelme mSanpete County The hingeline which runs along the backbone of Utah describes the shore of an unuent sea Elsewhere in the world such hingelines have ielded some of the most It 1 important discoveries in the world. To date, in Utah, however, the hingeline has absorbed far more dollars than it has returned. In the meantime, as a number of operators including Shell, Chevron and cut back on drilling in the Gulf, dwindling prospects in the Altamont-Bluebearea of the Uinta Basin. They have turned to deep drilling that is, 15,000 feet or more along the lucrative Tertiary trend in the deeper part of the Uinta Basin. 4 A ll Marginal Wells An increasing number of marginal wells now hints at the boundaries of commercial production on the east, along the south and to the north of the field. The Pine View discoveries just 40 miles northeast of Utahs capital have spawned a major interest in northern Utah. And federal lease applications have covered much of Summit, Morgan and Cache counties. There also was active leasing In the southwestern basin and range plateaus of Millard, Sevier, Iron and Beaver counties. In March some leases were sought for more than 114,000 federal acres in the overthrust belt area of north Utah principally in Rich County, heretofore, principally involved in ranching and farming. Federal lands in western Utah got the attention last November with applications filed on more than 834,380 acres during a single week. One individual application accounted for more than 200,000 acres. Stimulates Interest The interest was stimulated by dis covery in another state Nevada where Northwest Exploration Co hit oil at its No. 1 Trap Springs wildcat in the Eagle Springs area south of Ely the process of recovering magnesium metal and chlorine from the Great Salt Lake, the Magnesium Division of NL Industries will provide nearly 700 jobs for Utahns in Tooele and Salt Lake counties. NL has invested more than $135 million in Utahs future. In addition, NL and its employees pay substantial taxes and royalties. Helping Utah work. Its good business for all of us. In Magnesium Magnesium DivisionNL Industries Inc 238 North 2200 West Salt Lake City, Utah 84116 x V ; i : |