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Show B&ERIKG LIBRARY "Ow ttetoi 9$ Ifttet Significance in The Oil and Ulining World" xjfll Salt Lake City, Utah. Friday, February 1. 1957 VoL g7J No. 49 10 Cents i $24,175 Rr By Mold V Paid Drillers s :i5Mos. V Active In Paradox Area Thanks to weather in the Parad dox Basin, which permits most in areas, drilling unmber of rigs active in the state has shown an increase during the winter months, rather than the traditional decline. an year-aroun- The Moki Minin ' . explained why he selected submitted a ch' ie drill site on top of the bench. to cover the ro Or wa3 first mind in August of Land Board for 954. nadium mined frv Th Moki mine was the first commine on Indian Ci. mercial mine on Indian Creek and in Juan county under Mineral Lease as a result of this discovery other Association of Oilwell ConNo. 5700. ore bodies have been found. tractors of America notes 32 drillThe ore was shipped to the AEC The Bureau of Public Roads is ing rigs working in the state for mill at Monticello, Utah and cov- ust now completing a new gravel the week ending Jan. 21, an iners the period from Aug. 1 to Dec. crowned road from the oil high- crease of three over the previous 31, 1956. A total of 5,542.91. tons way at the the Home of Truth week. e were shipped having a gross value 0 the Indian Creek area, a of $200,236.35 not including deof about 20 miles so that Roughly speaking, that more allowances and haulage ore can now be hauled to the mill resents an investment of more velopment allowances. J308. One lot shipment of 307.57 than 15 million dollars in drillThe royalty payment was based ons carried a settlement assay ing costs alone by oil firms. on 12.6 per cent royalty, plus 8 of 0.96 per cent U308. The Moki mine was discovered per cent of the premium payments. The average grade of the by Richard E. Redden, geologist ore shipped was .45 per cent and part owner of the Moki Uranium Syndicate, on May 25, 1954. An official of the company states, 1 was called to the property by dr. Redden a few days after the iirst drill hole was completed. The United States Smelting & Relole was drilled through a mantle of gravel which covers all the fining Co. apparently has picked area of the Moki mine. Mr. Red- up an additional Paradox section den had told me before he driled productive of natural gas at its No. 1 wildcat on the property that the geology, Chinle Wash-OhiShell Oil Co. has extended the as he interpreted it, was very in San Juan County. east-weaxis of North Deseret iavorable for an ore body and he Creek Pool in San Juan County ook me over to an outcrop of R. N. Hunt, USSR&M vice presgeologist at Salt Lake by three quarters of a mile by the Shinarup sandstone in a wash ident and to local sources confirmed successful recovery of oil at its some 500 feet from the ore hole City, between section that the Federal well. at .'Moah or , Monticello without which feet recovered 6 This means the pool on that ax- additional cost above the AEC cubic million feet of gas daily is is now about two miles long laulage allowance. tubing had difthrough s and an estimated been The Moki Syndicate has ferent origin than a previously to one mile wide. as Moki the tested area at shallower depth. Mining ncorporated The area a few miles south of has been mine the and operCo., Aneth Pool would appear to offer There had been some thought of 1956 by the ated since increasing promise in production Rimledge August that gas from the shallower area, & Uranium Mining from the Paradox section. million cubic feet at 5 rated a corp. under mining agreement Drill stem test between have seeped in durdaily, might with Moki. feet, saw gas rise to the test of the more the recent, ing surface in four minutes and oil Mr. Redden reports that he has deeper section. to surface in 35 minutes. The well found what may be another Moki flowed high gravity oil at the mine on State School Section 2, In any event, it now appears about 1 miles north of the old that USSR&M has a well with a rate of 720 barrels a day. mine. However, he will have to do potential of about 15 million Shell has very substantial acre more drilling to further prove cubic feet of natural gas daily age in western areas of the area. from the Paradox. this pool while Superior has holdings northeast and Phillips-Azteto the southeast. ; dis-anc- The management of n Oil Metals Corp. announced the acquisition of an interest in :five producing oil wells in Franklin County, Kansas, and in additional acreage with a potential of 50 commercial wells, when the drilling program is completed. This interest was acquired through the merger of Crown Development Corporation into n Oil & Metals Corp., completed last week. The merger also gives ownership of the Crown" mine including earned bonus payments of approximately $8,000. The U-Ka- & U-Ka- U-Ka- n U.S.S.&R. Announces New Find In Sail Juan Gas Pool Shell Ups Axis Of Deseret Greek Pool o st 22-1- 2 two-inc- h three-quarter- 1-- A Completes Merge; Acquires Oil Properties U-K- 5,2-75-5,3-40 . . Gas from the section, 4,862-4,89- 0 feet, is rated at about 963 BTU (British Thermal Unit) Gas from foot interval has a the 4,917-4,93- 8 amount of sulphur. The Chinle Wash discovery is important because it appears to be a separate structure on a northwest trend from the Boundary Buttes Field. With pre valance of relatively substantial amounts of higher BTU natural gas associated with increasing discovery of oil in the Paradox. Basin, ultimate marketing of production from Chinle Wash and Boundary Buttes would seem assured. The gas from diversified sources could be mixed. Most transmission firms have a 1,000 BTU standard on gas delivered to distributor companies and will accept only limited amounts of lower heat valued fuel. Crown mine, located in the Henry Mountains mining district in Garfield County has been in operation for about two years. With added mining equipment, produc-io- n will be considerably increased. n This merger provides with diversified interests and reduces operating costs. U - Kan emerges financially stronger with assets consisting of cash, securities, properties and leases, and plans for enlarging its operations. The new management of includes personnel from both corporations. Andrew Reid, Salt Lake City, is president. Mr. Reids years of service with Kennecott Copper Corp. and his wide experience in the mining of the base metals and uranium, admirably qualify him to manage The management is pledged to a policy of expanding the companys operations and to increase its production and income. It is now negotiating for additional oil production in Kansas, and for other valuable mining properties in Utah. The company recently completed negotiations to mine, on a lease basis, 25 uranium claims in the Pumpkin Buttes area in Wyoming. This mining will begin as soon as weather permits. stock is traded U-Ka- U-K-an U-Ka- n. over-the-count- U-K- an er in Salt Lake City and other areas, and is currently quotbid and .02 asked. A ed at .01 complete report on the companys operations, including a financial statement is being prepared by the management. Tests Finished On Well In Aneth Field c United states Smelting, Refining and Mining Co. this weex for prr1,a'ip completed shut-itests of its No. 1 well in the Chinle Wash northwest of Aneth Field. According to the weekly Utah Oil Report release Saturday, the well is flowing 9,500 MCFGD on a 2 inch choke. The wildcat well is a new field discovery from the Hermosa Paradox forn Ohio-Navaj- Bullock Oil and Natural Gas To Be Tested Ben B. Bullock of Provo, Utah, states that the Bullock Oil anc Natural gas field four miles wes of Ogden, Utah is to be drilled for oil and natural gas. A group of Utah business men will drill the wild cat well with a large Rotary rig to a depth o: 3,500 feet if necessary. The location of the well is on the Alonzo Hadley farm the SE of the NWy of Section 32 town2 West, Sal ship 6 North Range Lake Meridian. ' mation. . Phillips Petroleums No. 1 Navajo A" in the North Desert Creek Pool, San Juan County, flowed 695 barrels of oil in 20 hours on its initial test Operator is testing further. Sinclair Oil Spots San Juan Wildcat From a geological report given on the Structure, the formation, is very favorable for oil and nature gas, because natural gas is known quality beneath the Ogden Valley in the area where the locationt has been selected. . Utah Galena Oil Corporation, Delmarva Oil and Mines Corpora tion and Black Gold and Mines Corporation are interested in the project. o Cecil McNEW MINE NEAR PRODUCTION Coy pictured on left, and Pete Kaasch, both of Grand Junction, Colo., stand in the portal of a new mine on Calamity Mesa being de veloped as a joint venture of Calamity Creek Uranium Corp. and Boyles Brothers Drilling Co. First shipments of ore are scheduled to be made on or before Feb. 15. Sinclair Oil & Gas Co. Friday announced location for a wildcat extention to the northeast of oil production at Boundary Buttes Field, San Juan County. The firms Navajo Tribal No. 3 would be drilled 2.310 feet from the north line and 330 feet from the west line of Section 15, Township 43 South and Range 22 East. The project will test the Hermosa section at about 5,425 feet. |