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Show Off PeM etf Significance in Volume 28; No. 47 The WM Oil oh Price 10 cents Salt Lake City, January 24, 1958 AEC Asks Hercules Uranium Co. Acquires New Name At a special stockholders meeting, Saturday, January 18, Hercules Uranium Company became Hercules Investment Corporation. By vote of the majority of the outstanding stock, the company stock was made assessable, and a new board of directors was selected. The new officers announced the acquisition of the following: 1. The company is participating in a well now being drilled by the Fortune Petroleum Corporation of Los Angeles, ' California, on 320 acres located in Section 35, Township 36 South, Range 23 East, San Juan County, Utah. This location is just a few miles north of. the Gulf, Aztec and Reynolds Mining discovery wells in the East Bland-in- g area. Participation of Hercules Investment Company consists of a full 10 per cent working interest in the well, completed to the tanks, and the entire 320 acres. 2. A one per cent royalty interest in approximately 27,000 acres of state leases held by Pan American in San Juan County, Utah. Further developments of substantial importance to the stockholders of this corporation are expected in the near future, according to information received from the new officers. - William Stovall, Denver divis- ional petroleum engineer for the Carter Oil Co., subsidiary of Standard Oil Company of New Jersey, said in his testimony favspacing at the area oring that Ratherford Field contained an estimated 32,000 barrels of oil in place. He based the estimate on rock conditions developed by geologists for Superior. Oil Company of California. Ratherford. Field is considered by proponents of spacing as a part or extension of the general "Desert Creek" area, which also includes White Mesa, Desert Creek and other 80-ac- re which apparently isnt too unusal in the oil industry. Posted price of crude at Desert Creek-Anetis $3.15 a barrel so oil in place at Desert Creek the has a valuation of nearly four billion dollars. During the course of the resumed spacing hearings on Desert Creek; Clair- - Senior, attorney for The Texas Co., requested the agency to order a unified production testing of wells in the area. The agency said it, would rule on this motion after the evidence h was in. Shell Oil Co. is completing its Initial presentation as prostestant The hearings have been recessed until Feb. 24 during which time primary evidence again will be taken up. The applicants include Carter, Texas Co., Continental Co., Aztec Oil & Gas, Phillips Petroleum and acreage. Mr. Stovall said that only about others. Shell Oil Co. is protestant. 20 per cent of the 1,230,720,000 barrels of high quality crude could be recovered on primary 80-acr- e basis. "Secondary recovery would re suit in about that much again being recovered," Mr. Stovall said. Thus 60 per cent of the oil would be left in' the ground, Wyoming Solons Ask for Mills Halt Nelson Reorganizes xes Substantial Gains On Area Mills State of Utah Gas-O- il Commission Estimates San Juan Oil Reserve Desert Creek The 38,460-acr- e area of San Juan County may contain 'more than 1 billion barrels of oil in place, the Utah Oil and Gas Conservation Commission was told Thursday. & The Atomic Energy Commi has declared a halt on grants of contracts for mills or expansion of mills in Wyomings important Gas Hills District. United Press quotes Jesse C. Johnson in Washington, D.C., as saying: "At the present time, the AEC is not making any additional con centrate contracts involving new . milling facilities in the district." He says the AEC will consider the problems of the Wyoming producers (which were emphatically brought before the commission by Sen. Frank A. Barrett (D., Wyo.) and Joseph C. OMahoney (D., Wyo.) this week. x Nelson Mining Co., an old established Utah corporation, today announced completion of its reorganization plans by selection of a new board of directors, together with acquisition of substantial oil, gas and mercury prop- erties. - The new board of directors consists of: Daniel Hayes, president-lo- ng active in mining in the area, with substantial livestock interests. Mr. Hayes is also president of .Hayes Investment Co. Edmund M. Wagner, construction, mechanical and petroleum engineer, with extensive experience in managing, di Moab-Monticel- lo Denies America Lags Behind Britain in Nuclear Race J. Carlton Ward Jr., president publicly the award of a contract of Vitro Corporation of America, kilowatt nuclear power station today denied charges that the south of Rome. United States is lagging behind "This contract, signed with Britian in the international nu- Vitro Engineering Company, a clear technology race. Vitro division, represents, to the best of our knowledge, the first miscon"There is a growing nuclear power station foreign ception in newspapers and trade to' a U. S. engineering, awarded magazines here and abroad, that was firm. It signed a good four lead have the taken the British months ahead of the British constanuclear in supplying power Mr. Ward stated. tract," scale. on international an tions from could be farther Nothing The power station being built the truth," Mr. Ward stressed. SIMEA will be located for This misconception grew out Anzio, the famed World War at II of a British announcement in late beachhead and will cost more November that a syndicate of than $46,000,000. Start-u- p is schedington study.' British nuclear firms had signed Mr. Jones said he regarded the a contract to build a nuclear uled for 1962. Certain major commoratorium on granting of con- power plant for the government ponents, inculding a pressurized water reactor, will be purchased tracts a short-tim- e affair, unless of Italy near Milan. in the United States. Washington seeks still further On July 31, 1957, Vitro Corpstudies. But under questioning, he Under the curcumstances, it is did not know whether the determ- oration of America announced difficult for us to see how Britian Italian firm is ination would take a few weeks by a taking, the credit for beating or several months. for the construction of a 150,000 American technology to the punch . state-controlle- d in the international nuclear energy field. transmission facility 'which can Four Corners Pipeline hold 1,020,000 barrels. which-wil- l Of this total already .in the line, carry crude from Utah barrels come from fields 409.000 to the Los Angeles refining disin Sail Juan County- - Utah, and Wyoming senators have urged trict has been delayed until some- 114.000 barrels from Bisti Field. the Atomic Energy Commission to time in April, it was reported this The latter field, incidentally, approve construction of addition- week. , , al uranium milling facilities in James Thompson, an official of their state. Senators Frank A: Barrett (R., Wyo.) and Joseph C. the firm in which Shell Oil Co., Drill OMahoney (D., Wyo.) made the Standard Oil Company of CaliGulf, Superior plea in a meeting with Jesse C. fornia, Richfield, English Oil Co., Salt Lake indeJohnson, chief of the raw mate- and Continental have interests, New recent the of session a told pendent, and American Petrofina, rials division of the AEC. CommisConservation Oil Mexico Dallas, Tex., have drilled a nonA spokesman for Barrett said sion that problems commercial well between ' two Johnson didnt commit himself e Twenty-ninknown structural "high" at Ferbetween arisen had to anything. He "left us just ron gas field in Emery County, it Calif. and Palms Olive, where we were. holdwas reported. is Mexico The New agency Barrett, meantime, has asked The firm, which has plugged its on the another prohearing Sen. Albert Gore (D., Tenn), ing Federal at total Bisti which materials to Field, space chairman of the raw posal Four of had connected initial with the in 1,250 also is feet, depth subcommittee of the Congressionat on Ferron established an spac- discovery al Atomic Energy Committee, to Comers line, hold hearings on AEC decisions ing. The commission, in original production at two points some 3 axis. in favor miles apart on north-soutto discontinue issuance of any hearing, had determined ' two "We known there were had the building of of more permits for spacing. ' is on structure The big Four Comers line the separate highs uranium mills. and apparently there is no gas in Barrett said Gore has promised being filled right now. To date, some 409,000 barrel of the anticlineal situation between to hold such hearings "in the very crude have been placed in the them," said a spokesman. near future." barrel-a-da- y . Ferron Field Gets Ned Sites . right-of-wa- y . . - . 1-- 34 (34-20S-7- 80-ac- re h 40-ac- re on Pare 4) tive But he adds that the Grand Junction Operations Office is conducting a survey of the whole domestic uranium picture and that the amount of new milling capacity to be added in Wyoming will depend on determinations to be made in Washington on basis of this survey. Allan E. Jones, manager of the Grand Junction Operations Office, said 'a portion of the information requested by Washington had been forwarded. He confirmed that his office was "not now in active negotiation" on any of the five proposals involving some 4,000 tons of new capacity in the district, but is seeking information on reserves, etc., in connection with the Wash- Difficulties Delay Utah Los Angeles Crude Oil Pipeline - Corpora-(Continue- U-Execu- Right-of-W- ay Completion of the 70,000 recting and consulting in the industrial field. Mr. Wagner has also been consultant and engineer for numerous U.S. Government agencies. Eugene Dalton, livestock rancher. Lawrence T. Cardall, manager, Delivery Service and Transfer Co. Fraser Buck, longtime resident of Park City, with mining and mercantile interests. Mr. Hayes, president of the company, announces the following recent acquisitions and negotiations for the company; 1. The company is participating in a well now being drilled by d the Fortune Petroleum has been placed under "proration by New Mexico so that only barrels a day per between can well go into the line. This limitation is largely a matter of adjusting production to what the lateral to Bisti can handle. However, New Mexico is reported concerned about the fact that Utah hopes to gain a major share of productive capacity of the new 10-1- 1 40-acr-e "This contract with SIMEA is not our only project overseas, and we look forward to a continuing participation in the development of nuclear energy through, out Europe. "As evidence of this, Vitro of America last Corporation month announced the formation of Vitro International, a new operating company based in Switzerland, that will play a comprehensive role in Vitro. operations overseas, Mr. Ward concluded. The new division, Vitros ninth, will handle European sales for all operations, promote licensing of Vitro techniques by European companies, promote licensing of European techniques for Vitro activities in the United States and transmission facility. ' With a total of 13 pumps, the engage abroad in all activities 0 Four Comers line can qarry currently associated with Vitro barrels a day of crude oil Corporation of America. These include nuclear energy, to Los Angeles refining district. Some majors, such as Shell, nuclear materials, chemical, metalalready have announced they in lurgical and petroleum procestend to make up the deficit in sing facilities, mining and extrac(foreign imports) into tive metallurgy. Besides the SIMEA contract, California which will be created is currently engaged in deVitro a partial voluntary import by quota on oil in western states by sign, engineering and construction utilizing crudes produced in Utah bn a nuclear test facility for the Italian government at Milan and and New Mexico. Thus Utah is hopeful ofsecur-in- a heavy plant for a permanent stake in the the government of India at West Coast crude picture. 160,-00- off-sho- re water-fertiliz- er |