Oilpatch History

This month in history—January

STANDARD OIL WELL PROVES STEVEVILLE AREA
TO SURVEY 517,000 ACRES BLOCK ON SOUTH PLAINS. HOME OIL, ANGLO CANADIAN, SHELL, IMPERIAL & SOCONY-VACUUM JOIN FORCES TO DRILL BRAZEAU
With initial program, starting this winter, calling for twenty wells, a Chicago group incorporating under the name SPARKY PETROLEUM LTD is to develop the 7,760 acre lease and reservation block on the Alberta side of the LLOYDMINSTER Oilfield owned by the BURROW & SPARKS group of Winnipeg.
The McCOLL-FRONTENAC OIL COMPANY and UNION OIL COMPANY OF CALIFORNIA team is stepping out over four miles northwest of the ninemilelong strip it has proven up as a Natural Gas Reserve in the North PINHORN Area over the past four months. The new joint venture is McCOLL-UNION No. 10B2249 SW 10 acres of lsd 10 2249w4th. It rill be started in the immediate future. Site is over 4 miles northwest of McColl Union No. 7C648 ("lost northerly of the Gaswells so far completed by the team, with Open Flow Potential 15,000 Mcf daily after partial opening of the Bow Island Sand series with 7 gun perforator shots). New site is 11 miles southeast of the current limits of Canadian Western Natural Gas Cots Foremost Gasfield. The now venture, if successful, could mean a linking up of Foremost Gasfield with North Pinhorn to form a continuous field about 30 miles in length extending from Foremost to the McColl-Union No. 11A3528 (now completing with substantial gas production indicated in drillstem tests to date).
IMPERIAL OIL LTD, resuming operations in the VIKING-KINSELLA, area where during the past year it has proven up one of the largest Natural Gas Reserves on the continent, has staked location for IMPERIALKINSELLA No. 22, in lsd 7 16 4712w4th. The well will be drilled immediately, using rig from the ImperialYoungstown well, nor completing. Site lies just south of the railway line between the Towns of Viking and Kinsella, and is several miles southwest of the northwest southeast trending line marking current south boundary of the big gas reserve.
SOUTH PRINCESS SYNDICATE No. 3, LSD 12 8-19-11w4th, has given the best drillstem test oil performance yet recorded from the Madison Limestone in the general PRINCESS Area, and appears slated for commercial production. The important well is located 1 ½ miles north and a mile west of the South Princess No. 2 Madison Discovery, and is 2 ¼ miles south and 3 ¼ miles east of the Empire Pacific No. 2 Madison Discovery. It is the first test in the six-mile stretch separating those earlier completions.
GULF RESEARCH & DEVELOPMENT COMPANY, division of huge Gulf Oil Corporation, Pittsburgh has commenced a 1947 oil and gas exploration program in Alberta dwarfing all previous efforts of this company in this Province. The program was confirmed to the "Oil Bulletin" this week by John H. Bevel, General Agent for Gulf in Canada.
Alberta oil discoveries, which have boosted Canada's natural resource assets by over three billion dollars in less than three years, are - among other things - rapidly changing the petroleum refinery face of the Prairie Provinces. During the next sixteen months more than $30,000,000 will be pored into construction of three major refineries on the Prairies, and expansion of at least on existing refinery.
The longest crude oil pipe line in the world was placed in operation this weekend with the arrival at SARNIA of the first western Canadian crude to make the enture 1,770 mile trip exclusively by pipe line. INTERPROVINCIAL PIPE LINE COMPANY, by the completion of its 645 mile 30 inch extension from Superior, Wisconsin, has now provided transportation facilities for continuous yearround movement of crude oil from Alberta to Ontario refineries.
The first seven days in January accounted for 104,960 acres of petroleum and natural gas exploration reservations being issued and 121,442 acres being terminated, according to the weekly report released by the provincial Department of Mines and Minerals.
NET LOSS FOR YEAR IS $243,984
TRANSCANADA PIPELINES LTD has signed its first Canadian gas sales contract, an agreement made with UNION GAS COMPANY OF CANADA LTD. The announcement of that signing was made jointly yesterday by N.E. TANNER, president of TransCanada, and DAVID P. ROGERS, president of Union.
ALBERTA oil producers will be permitted to produce crude oil at a high rate again during February, according to the provincial allowable released today by ALBERTA PETROLEUM AND NATRUAL GAS CONSERVATION BOARD. The Board has fixed the February allowable at 289,998 barrels daily or only 1,261 barrels less than the record allowable of 291,259 barrels per day that was set for January of this year. Although down slightly from the January schedule, next month's rate is up 27,813 barrels per day compared with February of 1954.
The most comprehensive research project ever undertaken to release liquid hydrocarbons from the Athabasca oil sands of northern Alberta was announced today coincident with the formation of a four company partnership to carry forward the enterprise.
By CARL 0. NICKLE, Publisher of the 'Daily Oil Bulletin' and 'Oil in Canada'.
Successful control measures at PANARCTIC OIL LIMITED's wild burning gaswell on KING CHRISTIAN ISLAND in the Arctic Islands has to be the best news generated by the oil industry in the past number of months. The most optimistic individual in regard to control of this well had to be Panarctic President Charles Hetherington. and word via radio that the well was brought under control at weekend is welcome information indeed. Apparently final control measures permanently, plugging the well bore at the wildwell are still underway. As noted in the following official release from Panarctic more elaborate details on the control will be announced in the near future. The report from company president is as follows:
The Shah of IRAN, largest oil producer in the Persian Gulf, and the Government of LIBYA, top producer of North Africa, talked tough over the weekend, in terms that make it clear that costs to World Consumers of their petroleum are going up. Iran and Libya account for over 7,000,000 barrels daily of oil going to overseas markets, are thus strong factors in the current drive by members of the Organization of Petroleum Exporting Countries to increase the revenues of its memberstates.
After a week of frenzied trading, oil prices went into another tailspin this morning after Saudi Arabia's oil minister issued a public warning that prices could fall below $15 (U.S.) a bbl, disrupting the world economy.
GULF CANADA CORPORATION (GCC) says its board of directors has approved a return to Beaufort Sea exploration with a view to beginning seasonal production from the Amauligak structure In 1988 and full commercial production in the 1990s.
SHELL CANADA LIMITED, top spender at last year's land sales, highlighted activity in yesterday's Alberta Crown land sale by paying just over $16 million for land in the Sundre and Harmattan areas.