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Show Wwikni NON-CIRCULATI- ficuag IBNIVCPiiy OF Ij' - .rt LI l A P, V . Jf APR 13 i970 . 1 gpUALS ORDER VOLUME 2 NUMBER 7 DEP tJ 29 Campar Capy APRIL 13, 1970 Oil import plan termed- sound An oil industry representative says the result in increased imports of foreign oils and a reduction in program is fundamentally sound despite a few obvious flaws. Darwin W. Ferguson, vice president of Sun Oil Co., John G. Winger, vice president of the Chase Manhattan Bank, New York, said that any benefits to be gained from unlimited imports appear to be far outweighed by the .problems that would be created. If the United States is to be reasonably- - certain that it will WASHINGTON existing oil import control opposed the recommendation of the Cabinet Task Force on Oil Import Control that the present system be changed to a tarrif system. Ferguson, a spokesman for the American Petroleum Institute, testified before a House Interior subcommittee. . The recommendation of the task force, he said is a strange new concept AND GAS escape from Petro-Silve- r' completes wildcat discoveries r, Inc. of Salt Lake City in a joint venture with Murphy Oil Company, Columbus, Ohio, announces completion of the. Victor Logan No. 1 well in Trumbull County, northeast Ohio, as a wildcat gas discovery. The well was completed in the Clinton sandstone, a prolific producer in eastern Ohio, at a depth of 4,100 feet. Initial tests indicate a production potential in excess of one and a half million cubic feet of gas per day, the company said. This well was drilled in a previously untested area and is 8 miles southeast of the nearest well, a Ginton sandstone wildcat now being completed by Texaco Oil Company. Petro-Silver- s 'discovery is IS miles southeast of the new Lenox gas field in northeast Ohio. The company now holds over 6,000 acres in leases surrounding the discovery. Based on a spacing pattern of 80 has acres per well, Petro-Silve- r over 76 locations that could be drilled. eventually is one of the Petro-Silv- er major lease holders in this attractive area. Northeastern Ohio has been explored for oQ and gas since early the 1900s. Some gas was produced from shallow sands but the first Ginton sandstone production was in 1929 at a depth of 2,700 feet. Lacking modem drilling and completion techniquesandinterest in exploration development waned and not until late 1969 did the area receive serious attention. In October, 1969, the Clinton sandstone discovery well, the No. 1 Remelius, Lenox Township, Ashtabula County, in extreme northeast Ohio, was completed and a fast and furious lease and drilling play began. As of this date, approximately 40 wells have been drilled and records indicate all of the wells have been successful. With the completion operation called hydrofracturing, a technique in which the producing formation . is factured by injection of water and sand; high-pressu- re most Clinton wells which previously would have been plugged are now completed as commercial producers. The northeast Ohio area is The board of governors of the Salt Lake Stock Exchange has attractive particularly to the independent oil prospector because of the success ratio, reasonable drilling and and completion costs, the indications that the wells will provide an acceptable profit for the investor. Because of the shortage of natural gas, the average price of 36 centsMcf paid the operators in this area is among the highest in the United States. The McKnight Hair No. 1 drilled in liberty - Petro-Silver-I- tarriff have adequate supplies of petroleum on a continuous basis, Winger said, it must remain largely Byron Tunnell, a member of the Texas Rail rod Commission, said that in studying the task force report he was impressed with the apparent acceptance self-sufficie- that we must become independent upon foreign sources for our crude. Continued on Page 2 S.L. Exchange ups rates on stock trades Petro-Silv- er Petro-Silve- a deliberately designed to drive down domestic crude oil prices and to increase our reliance on Middle East oil. . It has been estimated that the change to a tariff system would wildcat well in Ohio during fracturing procedure. The company also has announced a wildcat hit in Montana. VAPOR WATER of the U.S. oil prices. sh Countyj Montana,wellwas in completed as an oil is This wildcat 1970. March, the from miles 2 approximately nearest oil production and is producing from the Sunburst sandstone, a well.-know-n objective in Montana. The well is currently on pumping test and is producing from 10-1- 5 barrels of oil per It is planned to produce the day. well for several months prior to additional considering treatment. stimulation or Hie company holds additional acreage in the area and plans are being made for future development. . authorized the same surcharge on stock trading as was approved by the SEC for the Big Board. However, the board made an exception for shares trading under $1 a unit. At this level, the old rate of commission will prevail, a spokesman said. of the. 53 Salt Lake Twenty-fiv- e Stock Exchange stocks now trade for a $1 or more a share. The change was effective immediately and will prevail for y trial period approved die for the Kg Board. SEC the by The change allows brokers to make a service charge on orders of 1,000 shares or less. The charge will be $1 5 or 50 percent of the applicable commission, whichever is less. 90-da- While the charge will make it more costly for small investors to buy and sell stocks, the action was intended to make their business more attractive to brokers and to combat losses on Wall Street. In proposing the change, the New York Stock Exchange said thaL more than half the brokerage firms doing public business lost money on their securities commission business in 1969 because of' higher operating costs and 'lower trading volumes. Salt Lake Exchange members have for many years charged the same rate as the Kg Board for stocks trading at $1 andover. The schedule for stocks trading' under $1 .a share has been at a lower rate. BuMines creates shale department - The Nixon WASHINGTON Administration has announced it is creating an oil shale division in the U.S. Bureau of Mines, the first time in history that shale oil has been given such recognition Heading the new division will be Red Stone, formerly with the U.S. Geological Survey. The division apparently would oversee the leasing of public lands to oil companies for research work in Colorado, Wyoming, and Utah. The oil shale division is one of three new offices to be created. The others, will be concerned with solid waste disposal and the environment. |
