Oilpatch History

This month in history—May

1940 OIL PRODUCTION 518,650 BBLS AHEAD OF SAME PERIOD IN 1939 AT END OF FOUR MONTH PERIOD.
Some Two Hundred Ex-service Men working in the Turner valley oilfield have volunteered their services towards effecting an organization for defense of the vital field against Saboteurs or Fifth Column elements, it was learned today. It is expected that approval for formation of the Home Defense unit will be given by military authorities without delay, and that no time will be lost in getting the group fully organized, armed and in active operation. The Alberta Petroleum Association is back of the plan. The Association has been negotiating with the Dominion Government for some time re defense of the rich oilfield, and has advised Ottawa that 200 volunteers are ready for duty. Recent developments in Norway and the Lowlands have focused attention of Canadians on possible Fifth column elements within the Dominion, and Home Defense units formed of Ex-service Men are being readied to guard all vital points and properties in the country.
WELLS: CRUDE OIL PRODUCING 103; TESTING PRODUCTION 9; GAS WELLS (OPERATING) 84; DRILLING 15; TO SPUD 10; RESUMING 2: STANDING 7; TOTAL: 230 WELLS.
(An Editorial)
MID-CONTINENT OIL & GAS STANDARD OIL OF B.C's MID-CONTINENT No. 4 reached the Taber sand about 3,260 ft, made a drill-stem test with bottom 13 ft in the sand at 3,273 ft, and obtained a 214 foot rise of crude oil and drill fluid. 7" casing was set at 3,254 ft, the plug was drilled out, the sand below the casing, wall scraped, and Tubing was being run on Friday, preparatory to making a swabbing test. This well is 8 miles south of the Dominion oilwells, and three eighths of a mile southeast of MID-CONTINENT No. 3, 'discover' well completed in January. (This well is installing pump, should go on production by thy 25th. It is stated to be a 'commercial' producer).
The WARTIME OILS-backed CALMONT No. 1A well, in lsd 10 35-19-3w5th on the Central West Flank of TURNER VALLEY, completed drilling on May 7th at 8,135 feet, 365 feet in the Madison limestone, after penetrating the Upper Porous horizon only. The Upper Porous was topped at 8,022 feet. The drill-fluid has been circulated out, and the crew is awaiting compressor to place the well on production test. Three unsuccessful completions were reported this week among the wildcats on the Southeastern Alberta Plains.
Prepared by the "Oil Bulletin", based on returns by the Alberta Oil Conservation Board.
A "New Deal" on Canada's proven and potential oil resources in the Northwest Territories was announced last weekend by the Canadian and United States Governments. The new arrangements result from renegotiations of the 1942 deal under which the U.S. Army undertook the "Canol Project" (Oil Bulletin, May 5th 1944, and previous issues for details).
Victory in Europe, the climax of 2,319 days of the costliest warfare in the world's history, the preliminary to an inevitable Victory in the Pacific, the bloody foundation for what the world hopes will be a firm and lasting Peace, a day of Thanksgiving, a day of Remembrance for the millions from all the United Nations who gave all to make V-E possible.
By C. O. Nickle
CANADIAN FINA OIL LIMITED was incorporated with a Dominion charter this week, and capitalized at $3,000,000, to carry on oil exploration and development in Alberta. The company starts off with a stake in five proven REDWATER oilfield locations, two exploratory wells, and an interest in about 1,500,000 acres.
The Oil Industry's section of the Manitoba Flood Relief Fund, being organized through the Daily Oil Bulletin, added another $1,309.40 to its total today to raise contributions to date to $37,510.40. The oil section of the nation wide Fund is expected to grow materially
It now appears quite possible that construction of the AlbertaWinnipeg leg of the proposed TransCanada natural gas transmission line will begin July 1 and should reach Winnipeg in the fall. An Ottawa report received this morning stated that the federal, government has agreed to lend TransCanada PipeLines Limited $72 million for nine months.
STATE LEGISLATURE CALLS FOR OIL IMPORT CUT TO U. S. BUT WOULD EXEMPT CANADA.
KLINTAR OILS LIMITED has indicated crude oil success from the Cardium sand at a well in the Keystone area of central west Alberta and has run production casing through that sand section, perforated a ten foot section in the pay zone and will carry out a series of production tests on the venture shortly. This well was drilled on a wholly owned quarter section and although the company has production in Armena and Redwater as well as royalty interest in other areas of Alberta, this is the first venture to be operated by the firm.
Start of in Arctic Island program for the exploration of petroleum and natural gas got off the ground in Calgary late Tuesday afternoon, May 17th, but even as it commenced there were many uncertainties as to it's extent, continuation, or expansion. The uncertainties of this project, as well as others on the Islands are the result of unsatisfactory regulations issued recently by the Federal Government in Ottawa, Canada, and its Northern Affairs and National Resources Department. Under healthy exploration conditions, an exploratory project of this type would be contracted on either a definite time period basis or expenditure per acre or square mile. However, as it now stands, the consulting firm involved in this project is going into the Arctic on an indeterminent basis, subject to recall if the present uncertainties are not clarified, or subject to further expansion if incentive is provided.
PAN AMERICAN PETROLEUM CORPORATION and IMPERIAL OIL ENTERPRISES LTD. wrote their names in Canada's oil industry History Book during the last week in April 1966, with the staking of three exploratory locations off the eastcoast of Canada. The drilling authorities from the Dominion Government have now been issued to the exploratory team and actual drilling operations on the first well will get under way in the immediate future. Spudding of the first well is anticipated during the first week of June.
The exploration team's Dominion Government and Provincial Government filing virtually blanket a 49, 000 square mile area surrounding the drilling program. The one exception in the solid block of 31, 318, 503 acres that they hold is the grid close to the geometric center of their land spread held by Canadian Homestead Resources Ltd. Pan American initiated filing with the Dominion Government in the area on April 15th of 1964 with the acquisition of about 23 million acres. On April 20th of the same year it added another 3.5 million acres and then supplemented its huge block by another three and a half million acres on July 24th and 1. 4 million acres on September 9th. All filing was carried out on its own behalf and preliminary geological surveys were commenced during its first year. In the fall of 1964 Imperial Oil Enterprises Ltd. negotiated a joint partnership arrangement and for certain unreported considerations acquired a full half interest in the play.
By: Carl O. Nickle, Publisher, Daily Oil Bulletin
WHITE PAPER tax proposals involving downward revision of incentives, taxation of unrealized gains, and complex dividend integration would seriously jeopardize the petroleum industry's ability to attract the capital necessary for it to make the maximum contribution to Canada's economic growth and prosperity, GULF CANADA president JERRY McAFEE told the SENATE COMMITTEE ON TAX REFORM.
New Alberta Petroleum Land Regulations are expected to be tabled in the House by next week. It is believed that two major, adjustments to the regulations will involve a five year lease term, and horizontal separation of rights. Both would be very significant changes, as the standard lease term is presently ten years, and existing lease cover all subsurface rights, When horizontal separation comes into force, the leases will earn only rights to formation tested. The government, as noted previously, is planning to implement the new regulations by July 1 of this year.
Following is complete text of the Ministerial Statement made upon the tabling of the Policy paper on New Canada Oil and Gas Land Regulations in the House of Commons on Wednesday, May 19th, 1976.
Three Canadian natural gas pipeline companies agreed May 19, 1976 with NORTHWEST PIPELINE CORPORATION of Salt Lake City to provide the cross-Canada link for Northwest's pipeline project to deliver gas from Alaska to the lower 48 states. The Canadian companies axe FOOTHILLS PIPELINES LTD., WESTCOAST TRANSMISSION COMPANY LIMITED, and THE ALBERTA GAS TRUNK LINE COMPANY LIMITED.
NEW YORK (CP) Canada's new national energy program is "vicious and unfortunate" and hurts Canadians as well as Americans, SAMUEL SCHWARTZ, the Canadianborn senior vicepresident of CONOCO INC., said Wednesday.
WASHINGTON (CP) - U.S. multinational CONOCO INC. mounted a political pressure campaign Wednesday to fight a bid by DOME PETROLEUM LTD. of Calgary to take over Conoco's Canadian subsidiary, HUDSON'S BAY OIL AND GAS LTD.
by Dale Lunan
TRIAD OIL CO. LTD announced this morning that COLORADO OIL 7 GAS LTD will participate with it in the drilling of the commitment well on Drilling reservation No. 81 in the big Hill creek area of southern Alberta, 17 miles north of Calgary's city limits and 30 miles south-south-east of the Harmattan Mississippian oilfield. Drilling Reservation No.81 was purchased in the name of Triad at the August 23, 1955 government land sale for cash bonus of $338,777.60.