Oilpatch History

This month in history—November

Blowing in early Thursday morning with the largest flow increase yet recorded in Turner Valley following acidizing, BROWN CORP. No.1 joined the field's largest producers with a flush flow of more than 3,000 barrels. Former normal flow was about 350 barrels daily. The well expected to settle to around the 2,000-barrel daily mark. BROWN CORP. NO. 2, acidized at the same time is expected to settle to about double the former flow of 350 barrels daily. The wells are still on test and settling so no official production figures have yet been released. The sensational result at Brown No. 1 is especially important, as the well is the most southerly producer in the field. The result there and at Prairie Royalties greatly improves the prospects of large production in the far south end.
STERLING PACIFIC No. 6, after several days of very slow drilling through hard formation, is expected to complete drilling late Sunday night. Very fast time is now being made in the porous horizon, more than 365 feet in the lime. WESTFLANK No.1, west offset of Sterling No. 6, is making good time 265 feet in the lime. NATIONAL PETE No. 1, completing with cable tools, is 200 feet in the lime and reports increasing gas flow and oil showings.
ROYAL CANADIAN No. 1 contacted the lime Friday and was preparing to run casing Saturday, while SUNSET OILS is making hole at the top of the Fernie shale within 200 feet of the lime. These two wells are, among the most of the south end drilling tests and successful completion would extend the proven crude line further down the flank.
Today's complete Turner Valley report is as follows:
GREEN, VALLEY BANNER, after cementing off cavings, is again making hole below 4,336 feet, in a shale believed to overlie the HOME sand. ELBOW OILS, drilling against a heavy flow of gas below 5,260 feet, expects the Brown Sand at any time. Prospects for oil production at both these wells appear very good.
FOUNDATION PETE will make a distribution of two cents per share on Nov 20th to shareholders on record Oct 31st, $22,000 will be distributed. MONARCH ROYALTIES will make its first dividend payment about Nov. 27th to shareholders on record Nov 20th. The dividend, three cents per share amounts to $37,500. ROYALITE OILS will distribute regular dividend of fifty cents per share, plus a special disbursement of twenty-five cents per share, on Dec. lst to shareholders on record Nov. 19th. C. & E. CORPORATION dividend of five cents per share will be distributed on Dec. 15th to shareholders on record Dec. 1st. VULCAN OILS will distribute five cents per share on Dec. 20th to shareholders on record Nov. 30th. Other Alberta Oil Company dividend announcements are expected soon.
A new Petroleum & Natural Gas Conservation Act giving the Conservation Board wide powers over the Alberta oil industry, was introduced at the special session of the Legislature on Tuesday, will be up for final reading on Monday, and will become effective as soon as the Lieutenant Governor has affixed his signature. The Act, principal terms of which were accurately previewed in the November 12th Oil Bulletin, repeals the present legislation. Following is an analysis of the new Act, compiled by the Bulletin.
Wells: Crude oil producing 61; Testing 1; Gas wells 104; Drilling 17; Resuming 2; Standing 8; To spud 10. TOTAL NOVEMBER l9th: 203.
McCOLL-FRONTENAC TO DRILL SOUTHWEST, IMPERIAL GOES NORTHWEST TOWN OF LEDUC
Ground survey and other work on the 450-mile EDMONTON-REGINA crude oil line is proceeding as rapidly as possible, Dr. O. B. Hopkins, newly appointed President of THE INTERPROVINCIAL PIPE LINE COMPANY LIMITED, said today. Authority of the Board of Transport Commissioners to construct the line was given today.
Prepared by the "Daily Oil Bulletin" from Trust Company statements showing current and recent previous Distributions, listed under months of actual oil deliveries. Distributions are made about one month after end of month of actual delivery:
Crude oil from Alberta's newest discovery well, BARONS OIL LIMITED No. 1, was analyzed Tuesday and showed a gravity of 32.5 degrees API. The brown, light crude in the Viking sand equivalent at Barons compares with 37 to 38 gravity oil at Joseph Lake, Alberta's first Viking oilfield located just over 200 miles north of the new discovery.
CONSTRUCTION WILL START IMMEDIATELY WITH COMPLETION SCHEDULED FOR NEXT SEPTEMBER
WELL STILL BELIEVED TO BE ABOVE MAIN PRODUCING HORIZON, HALFWAY THROUGH PAY ZONE
Construction of a $3,000,000 gas processing plant to handle gas obtained with oil production from Redwater field will be completed by the end of 1956, it was announced today by W.B. DINGLE, Edmonton division manager for IMPERIAL on LIMITED. BROWN & HOOT LTD., Calgary construction contractor, will build the plant, and MAJESTIC CONTRACTORS LTD, Edmonton, have been awarded the contract for construction of the pipeline gathering systems Both these contracts were awarded on the basis of low bids.
Following the decision of the Supreme Court of Canada in which the ownership of mineral rights on the W 1/2 24-10-28 in the Daily field West of Virden, was awarded to farmer, E.G. WARDLE, SOURIS VALLEY OIL CO. LTD., together with PASCAR OILS LIMITED have acquired this lease. This half section is at the present time directly offset by three producing wells and diagonally offset by two additional producing wells.
N.E. TANNER, President of TRANSCANADA PIPE LINES, said today the announcement of joint arrangements by the federal and Ontario Governments to build the northern Ontario section of the all Canadian pipeline displayed a "sympathetic understanding of the problems of the project and will result in it being completed much sooner than otherwise would have been possible."
CENTRAL EXPLORERS LIMITED has farmed out twenty sections in the LOMOND-LAKE MCGREGOR area, Twps 15 & 16, Rges. 18 & 19w4, to GREAT PLAINS DEVELOPMENT COMPANY OF CANADA LTD.
F.P.C. AUTHORIZES IMPORT OF CANADIAN NATURAL GAS BY PACIFIC NORTHWEST PIPELINE
The following is an excerpt from an address presented by CARL. O. NICKLE M.P., before the CALGARY CHAMBER OF COMMERCE, November 16th, 1956 at the Palliser Hotel, Calgary. Copies of the full text of the address may be obtained upon request from the Daily Oil Bulletin, Calgary.
CANADA'S NATIONAL ENERGY BOARD on Friday afternoon, NOVEMBER 19, 1971. released its decision on CANADIAN NATURAL GAS REQUIREMENTS and shocked the producing segment of the industry as well as those requesting new export permits with its recommendations. The Board's Reasons for Decision as well as the disposition of applications of firms seeking additional export volumes, read as follows.
"We are very disturbed with the recommendations of the National Energy Board regarding their assessment that there is a lack of surplus natural gas for export in Canada. We trust the Federal Cabinet will ask the National Energy Board to take a second look at this recommendation, We will be assessing the National Energy Board recommendations with our Alberta Energy Resources Conservation Board to determine if they have seriously underestimated the potential of natural gas reserves outside of Alberta. We will also be making an assessment to determine if there has been an extensive reliance in terms of requirements for Canadian consumption by way of power generation in central Canada.
Dave Furlong, Managing Director of the Canadian Petroleum Association said today, "that he was surprised and gravely concerned by the decision announced today by the National Energy Board that there is no surplus of natural gas and that the Board had dismissed all the export applications totaling 2.7 trillion cubic feet which had been applied for in July of this year."
J. W. KERR, Chairman and chief executive officer of TRANSCANADA PIPELINES LIMITED, said today that he does not agree that the recent decision of the National Energy Board to deny additional exports at this time will adversely affect the natural gas producing industry.
E.C. PHILLIPS, Executive Vice-President of WESTCOAST TRANSMISSION COMPANY in commenting on last Friday's announcement by the NEB noted that his company is confident that it had sufficient gas reserves calculated on a regional basis to serve future British Columbia needs and also allow for additional export sales. He added that producing companies need additional incentives, mainly in higher wellhead prices for their gas, to increase their exploration activities. Westcoast was not one of the companies involved in export applications that were dismissed by the National Energy Board with its decision that Canada has no surplus gas reserves at the present time.
DAVE FURLONG, Managing Director of the CANADIAN PETROLEUM ASSOCIATION commented on the Statement by the Alberta Government on the Pricing of Natural Gas. Mr. Furlong said, "This will need to be studied carefully by the oil and gas industry before the impact of these far reaching proposals on the future of the industry can be properly assessed. We appreciate, said Mr. Furlong, the Alberta Government's statement that there will be consultation with industry on these matters prior to implementation, and we sincerely hope as Premier Lougheed has expressed that these proposals will be thoroughly discussed so as to best serve the Interests of Alberta, Canada and the industry."
By: CARL O. NICKLE, Editor Emeritus, Daily Oil Bulletin
S.A. MILNER, PRESIDENT of the INDEPENDENT PETROLEUM ASSOCIATION OF CANADA commented as follows o Government of Alberta's Natural Gas Policy statement:
PEYTO OILS LTD. Calgary. has acquired POLARIS OIL LIMITED, Calgary based privately owned oil and gas exploration company.
Ashland oil Canada Limited reports the filing on November 15, 1972, with the Ontario Securities commission of a preliminary prospectus describing a proposed issue of convertible subordinated debentures. Terms and amount of the issue have not been finally established. The 'Convertible Debentures would be offered in Canada and would not be offered to citizens or residents of the United States.
Consolidated Statement of Income and Retained Earnings
Following is complete text of the Energy Statement by the Hon. Donald Macdonald. Minister of Energy Mines and Resources in the Federal Government. The statement was read in the House on Thursday evening. November 1st, 1972. It is reproduced in the D. O. B. in detail due to the number of requests for actual copy on the statement and the disturbances that it has caused within the Canadian oil Industry.
Following are complete texts of correspondence exchanged between Alberta's Premier Lougheed and Prime Minister Trudeau prior to the November 18th, Turner Budget. These letters, as well as two previously recorded in the D.O.B. were made public by both Government officials on November 25th. They have been recorded in the Bulletin to give our subscribers some in sight into understandings of the Government officials and thus an indication of their reaction to the Increased friction between the Provincial officials on resources revenues. Both men have stated publicly that they will not back down from their announced positions.
Following is text of the closing statement submitted on behalf of GULF OIL CANADA LIMITED, IMPERIAL OIL LIMITED, and SHELL CANADA RESOURCES LIMITED, three of the firms that have been most active in Canada's Northern frontier region during the past decade. The statement was made with respect to both the Canadian Arctic Gas Pipeline Limited's and the Foothills Pipe Line Ltd's pipeline proposals as well as the matter of the social, environmental and economic impact regionally of the construction, operation and subsequent abandonment of the proposed pipeline.
IMPERIAL OIL LIMITED on November 11, 1977, said that it has applied to the ALBERTA ENERGY RESOURCES CONSERVATION BOARD to build a project to produce between 120,000 and 145,000 barrels a day of upgraded oil from bitumen deposits on the company's leases near COLD LAKE, ALBERTA. Total cost of the project is estimated at $4 billion, including allowances for inflation during the construction period.
The SUPREME COURT OF CANADA judgement in the court action initiated by CANADIAN INDUSTRAIAL GAS & OIL LTD against the SASKATCHEWAN GOVERNMENT back on FEBRUARY 8th, 1974, is expected to be handed down on WEDNESDAY, NOVEMBER 16th, 1977. Both parties to the legal action were advised at weekend that the long awaited decision would be made this week.
OTTAWA (CP) -- The merger of two competing applications to extend a natural gas pipeline from Montreal into the Maritime provinces could speed the way to reduced dependence in the region upon imported oil, the NATIONAL ENERGY BOARD was told Monday.
OTTAWA (DOB/CNW) -- PRIME MINISTER PIERRE TRUDEAU defended Tuesday his government's acquisition, through PETRO-CANADA of a controlling interest in PACIFIC PETROLEUMS LIMITED and its plans to purchase the outstanding shares, saying the context of the decision is the policy, developed over the years by his administration, to gain more control over the domestic economic environment "particularly in petroleum.
CALGARY (DOB) -- IMPERIAL OIL participated in bringing in 87 new oil wells and 38 new gas wells in western Canada in the first nine months of 1978 the company has disclosed.
MOBIL OIL CANADA LTD. said today it plans to have as many as three drilling rigs assessing the oil and gas potential of the Grand Banks east of Newfoundland in 1980. The rigs will carry out a multi-well drilling program on acreage under permit to Mobil and partners.
By C.O Nickle, Editor Emeritus
C.O. Nickle, Editor Emeritus
GAS SALES COSTLY
EDMONTON (CP) -- Alberta government and SHELL CANADA RESOURCES LTD. officials refused comment Monday on reports the province will receive $36 billion in royalties from the Alsands oil sands project.
SASKATOON (CP) -- Prime Minister JOE CLARK and Alberta Premier PETER LOUGHEED talked in a motel for three hours Wednesday about oil and gasoline prices.
WINNIPEG (CP) Premier STERLING LYON today named three new cabinet ministers, made a number of changes in ministerial responsibilities and created a new department of energy and mines for Manitoba.
EDMONTON (CP) Alberta will cut its oil production by 60,000 barrels a day starting in March, Energy Minister MERV LEITCH told the legislature Thursday.
Tempers ran high Thursday as members of the INDEPENDENT PETROLEUM ASSOCIATION OF CANADA called for a strong stand against last week's federal energy policy and budget,
by Adrienne Ballard