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Show The National Enterprise , June 16, 1976 Page Three Earnings Lower for MGF Oil Will Shale Oil Ever Flow? As bad as things were three years ago, commercial development of oil shale seemed far more imminent then than it does today. Devastated by crippling effects of the Arab oil embargo, U.S. political leaders were of a more coop- White River just last week completed and filed with the Department of Interior a Detailed Development Plan. Public hearings will be held in Vernal, Utah Aug. 10 and in Salt Lake City Aug. 12 for Wont't Go it Alone MIDLAND, Politically, their greatest concern, Ramsey explained, is the possibility of product prices being subject to control while expendiscussion. ses are not. erative and enthusiastic When Ramsey says detailed Ramsey hopes to see the nautre. development plan, he means share costs of deBut gasoline lines disappear- detailed. The report, an government a demonstration ed and the price of gas even outline of the next twenty five veloping module with capacity of 0 dropped a few cents. The years, covers every step of barrels per day. For in urgent sense of emergency development White River in- addition to a few government quelled and it soon became tends to take from the be- surprises, admits once Ramsey politically fashionable to ginning through the exhaust- they got started, they realized lambast the oil industry at ion of the oil shale reserves the technology was not near as located on their lease. every turn. advanced as they believed it to Im not so sure we be. Before industry takes on a Costs Soar more help from the full scale commercial project government, but w'e certainly of 100,000-200,00- 0 bpd, RamMeanwhile the company has didnt expect what we got, sey believes a demonstration says Earl Ramsey, president, poured some $12 million into module is to resolve White River Oil Shale Corp- the project.exclusive of the technical necessary and economic un$72 million theyve spent in oration. certainties. Ramsey heads a consortium lease bonus payments. From He suggests a joint funding of oil companies (Phillips, Sun an anticipated cost of $2 of 75 percent by the million fpr enviornmental program Research Oil, and Sohio) that successand DevelEnergy fully bid $120 million for a studies, the actual cost grew Administration and 25 federal tract of 10,000 acres of to $7 million. They expect opment This is oil shale leases in the Uintah total costs to reach $86 million percent by industry. in line with other projects Basin. At the time, January by year end. financed by ERDA, he said. The estimated cost to con1974, White River was ready The White River Oil Shale to develop oil shale. Today, struct a 100,000 barrel per day intends to submit a shale oil plant has escalated Project to theyre not so sure. the government proposal from $600 million to over $1.5 for Left and joint Right Surprises billion. The later cost was Between Stop and Go, White verified for White River by development through the modular stage. Total support River has met a good deal of one of. the country's leading from Uncle Sam would probunexpected governmental contractors in the detailed ably amount to $150 million. moves. Refusal to completely study. Whether it will come to pass deregulate the price of natural Consequently, the projected is unknown. Ramsey, howgas has kept oil shale develop- price of shale oil required to ever, is confident oil shale will ment on a back burner, for yield a fifteen percent return be commercially developed by starters, Ramsey said. And on investment (in 1975 dollars) 1990. Its got to come, he price roll backs on both old exceeds $20 per barrel on a said. The world supply of oil and new oil came as a surprise 100 percent equity investment is limited. As developing Repeal of the depletion al- basis. nations begin to demand a lowance literally took cash out But we wont go on a 100 larger share, current world deof pocket and reduced dom- percent equity basis, reserves will disappear. And estic oil production. And now, clared Ramsey. The risks that could be as near as next politicians are playing games and costs of first proving the with the foreign investment technology are too great to be year. But without government tax credit. borne by industry alone. assistance, White River Oil Before we do anything We will go into a hold posShale wont proceed, Ramfile for suspension else, were watching with ition sey said. And without it, shale interest at what Congress is until the political climate is oil may well be an idea whose said better, he said. doing, 'or not doing, time will never come. Ramsey. ever-increasi- Oil Corp. (OTC 4.375, 4.875) ng 6,000-10,00- ex-.pect- ed industry-governme- . reported net earnings for the first quarter ended March 31 of $151,143, or 7 cents per share, compared to $272,427, or 14 cents per share in the same quarter of 1975, which included extraordinary income of $14,000, or 1 cent per share. Revenues in the quarter increased to $2,967,441 from $2,536,798 in the same period a year earlier. drilling subsidiary. However, he said, the company expects demand for drilling equipment and drilling profit margins to increase as the year progresses. Also, the company has several oil and gas projects which have begun generating revenues and earnings R. O. (Jack) Major, pres- subsequent to the first quarter. Oil and gas sales in the first quarter of 1976 increased 73 per cent to $478,341 from ident attributed the decline in net earnings primarily to in- $276,706 for the comparable creased depreciation and re period of 1975. ao ao ao O O i O O 2o . That s Okay, but better keep this ad handy in a few short months you may wish that you had been taking AGN. Join those in the know. Learn -- qJL nt Q and read O comments. O writers expert Gold Newspaper 5 02. Since 1933 22 A Leading O FREE 9-- Choice of Two Popular Books Gold! The Ultimate Hedge or Gold Panning for Profit sent with O 2O Subscription. P $6Per Year Issued Monthly Money refunded if not delighted AMERICAN GOLD NEWS P.O.BOX 457, DEPT. lone. CA. 95640 Gold-Gol- d Gold-Gol- d -- Gold-Gold HE -- Rainbow Note Success CASPER, Wyoming-Rainb- ow Resources, Inc. (OTC 9.75, 10.125) announced that Phillips Petroleum Company has completed the Werner 1 well in Converse A County, Wyoming, flowing barrels of oil, 288,000 cubic feet of gas, and 20 barrels of water per day on a 401 With over 1600 stock quotations, news articles, earnings reports, corporate profiles, market columns and feature stories, the National Enterprise covers the OTC securities market from coast to coast. 2064 choke. Rainbow holds a 50 working interest in the well, which is the third in a planned five to ten wrell development Draw-Wprogram in the Mikes Draw producing area in the Powder River Basin in behind closed doors of corporate board rooms to changing securities laws and regulations. Well keep you posted on the latest developments and abreast of current trends. We make it our business to know el Wyoming. Location has been staked for the fourth well, which is expected to be drilled in the near future. whats going on in the industry-fro- m The National Enterprise gives your investments the kind of coverage they deserve. Please send me a one-ye- ar subscription to the National Enterprise. Enclosed is $24.00. NAME ADDRESS I CITY ; STATE a and r - O o o about gold stocks, exploration. o O mining, legislation, gold in economy. . Phillips- duced profit margins in MGFs wholly owned contract Texas-M- GF ZIP Mail to: THE NATIONAL ENTERPRISE P.O. BOX 11778 SALT LAKE CITY, UTAH 84147 Gold |