Oilpatch History

This month in history—August

Reflecting the 6,000 bbls per day increase in Turner Valley allowable production which went into effect on July 1st, and the increase of five cents per bbl in Posted Field prices for Turner Valley crude which took effect July 18th the majority of royalty distributions from July production show substantial increases over those for June. Distributions, from July production are now going forward to owners of various types of royalties in Turner Valley oilwells. Following are royalty distributions for July announced to date, together with June distributions for comparisons (The complete cumulative record of production and payments, the 'Production, Revenue & Royalty Payment Record', will be published in the August 31st "Oil Bulletin").
Reportedly involving an outlay of between eight and nine million dollars, work is being started on a huge ammonium nitrate plant just south of Calgary, which is to utilize Turner Valley gas for the manufacture of essential materials needed for the production of explosives. The plant, an integral part of the Dominion's munitions production program, is being constructed by the Consolidated Mining & Smelting Company. The plant, it is understood, will be owned by the Dominion Government, but will be operated by a now subsidiary of Consolidated, the Alberta Nitrogen Company.
Reflecting the sharp increase in Turner Valley oilwell allowables placed in effect on July 1st, Alberta's petroleum production for July 1940 showed an increase of 215,937 bbls over output during June, according to figures compiled by Major F. K. Beach, of the Provincial Department of Lands & Mines. Total July production was 853,910 bbls, compared with 637,973 bbls in June. Turner Valley oilwells produced an average of 26,584 bbls per day during July, compared with 20,357 bbls daily in June.
Wells: Crude oil producing (under quota) 116; Tasting production 1; Gas wells (operating) 84; Drilling 117; To spud 12; Resuming 1; Standing 8, Total: 239 wells.
(An Editorial reprinted from the 'Daily Oil Bulletin', of Tuesday, August 19th, 1941)
The McCOLL-FRONTENAC OIL COMPANY, Canadian affiliate of the Texas Company, announced two more wildcats this week one, a Devonian test of its own located 19 miles due west of the Leduc Oilfield in Central Alberta; the other, another joint test with UNION OIL OF CALIFORNIA, located about 4 miles southeast of this team's Manyberries Gasfield in southeast Alberta.
SOCONY-VACUUM EXPLORATION COMPANY has started geophysical work on its recently acquired extensive reservations in the HANNA-DRUMELLER Area of Central Alberta. A contract Seismograph party, operated by Geophysical Service Incorporated, started work for Socony a week ago.
CENTRAL LEDUC OILS LTD reports that drilling has been resumed at its B.A.-PYRCZ No. 1 well, half a mile east of Imperial-Leduc No. 3. To assist in drilling of this deep test, financial assistance from the British American Oil Company and bottom-hole contributions from several of the major and independent oil companies are being, made. Company officials are hopeful that further 'dry hole' contributions will be made from other companies who now have the matter under consideration.
In his 24 years in the oil game, the last 12 years as one of Western Canada's more active independents, Clifton C. Cross had never seen one of his own wells commence production. Oilwells are notoriously fickle. Many a time in Turner Valley, Cliff Cross grew bleary-eyed as he waited day after day for one of his company's wells to 'kick off'. Always the well outwaited him put on its show after he had departed in disgust. As president of three independent companies drilling at Leduc, Cross was bound and determined to enjoy the thrill of watching first production roar into flame in a flare line. Yesterday, after 24 years, Cliff has his wish. Helen, his wife, was also at the scene. To suitably mark the occasion, she burst a bottle of champagne over the separator valve an instant before first oil ripped its way through it.
For the first time in 11 years a drilling system program is being conducted in the Devonian oil producing Norman Wells field of the Northwest Territories. Norman Wells is one of the Western Canada's oldest fields and it is the most northerly field on the North American continent.
IMPERIAL OIL LIMITED'S Big Lake South No. 5-25 wildcat, that lies about 5 ½ miles west of Edmonton city limits, is now a triple zone gas and oil discovery and is fast approaching another potential producing horizon. This wholly owned Imperial exploratory venture has so far assured its backer of gas, in indicated commercial volume in the Viking sand formation, and apparent commercial oil production from both the D1 and D2 zones of Devonian. Crew of the Imperial owned rotary drilling rig that is operating at this well is drilling ahead for the expected D3 zone of Devonian at last report was past the 4,501 feel level.
Today's Front Page Map highlights the recent British American Hudson's Bay oil discovery region north of ZAMA LAKE in northwestern Alberta which is becoming the scene of increased drilling activity and land speculation. With the discovery of reef oil in the Keg River Carbonates at the B. A, H.B. Zama North 16-19-11-64 wildcat industry rapidly diverted a large portion of its attention from the Rainbow Lake play to the Zama Lake region some 50 miles north. Attention was focused on the 8,320 acre drilling reservation and when B.A. Oil picked up this spread for a cash bonus in excess of $2 million a second Rainbow seemed in the making. This became even more evident when Hamilton Brothers purchased C.R. 4191, a 320 acre lease located 3 miles north of the discovery, for $1,362,870 or an average of $4,258, the highest per acre price paid at the July 26th Crown Reserve Sale. Interest in the area was sharply reflected in the stock market quotations with significant jumps in both Dome and Provo shares, major landholders in the immediate area.
A typographical error in yesterday's Bulletin failed to show that the Banff Mobil Saka 24-10-97 development well in the Rainbow Lake region of northwestern Alberta encountered 64 feet of oil in the reef carbonates of the Keg River formation. The error caused the well to be in Section 24, an erroneous location. The two additional wells, located in 33-2-108-7w6 and 8-28-108-7w6, were licenced by the Board today and are expected to spud August 27th. Both tests will be taken to the Chinchaga formation at depths in excess of 6, 600 feet. Contract for the 3-32 prospect has been awarded to Reading & Bates Drilling Co. Ltd. while the 8-28 prospect has been awarded to Arrow Drilling Company, Ltd. The wells will be drilled on a lease selection from P. & N.G. Reservation 3236 held 50% by Mobil, 45% by Aquitaine, and 5% by Banff Oil.
John C. Meeker, VicePresident and Calgary Division Manager, PAN AMERICAN PETROLEUM CORPORATION, announced two changes in the Exploration Department, M. R. WALLER, previously Exploration Superintendent, Calgary, is being transferred to Pan American's general office in Tulas, Oklahoma to assume the duties of Coordinator of Exploration Operations for the entire company, H. A. BAKER, formerly an Exploration Group Supervisor, succeeds Mr. Waller as Exploration Superintendent. The appointments are effective September 1, 1966.
E. A. Galvin, President of CANADIAN INDUSTRIAL GAS & OIL LTD., announces the appointment of Edward G. Battle as Executive Vice President of the Company.
THE WESTERN CANADA OIL SCOUTS ASSOCIATION has received applications for memberships from BANFF OIL LTD., and TEXACO EXPLORATION COMPANY. Both companies applied to join the Check at yesterday's weekly meeting and a vote on the applications will be taken by the membership on August 31.
The Province of ALBERTA, Canada's No. 1 oil and gas province, will enjoy in 1970 its first ever "Million Barrels Daily" Petroleum Year, and will make that target by a substantial margin. This is indicated in an analysis of Oil Nominations to the Alberta Conservation Board made by the "Daily Oil Bulletin", covering 1969 and 1970, including the Buyer Estimates for September through November of this year.
TORONTO (CP) -- Ontario Premier WILLIAM DAVIS presented a tough energy position Tuesday which takes on everyone the oil companies and producing provinces over profits and the federal Progressive Conservative government over rising oil prices and PETRO-CANADA.
by Rick Charland
A total of 19 exploration agreements have been finalized with the federal government on in excess of nine million hectares in the MacKenzie DeltaNorthwest Territories. The agreements call for the drilling of 24 wells over the next five years at an estimated cost of about $175 million.
by Rick Charland
by Debbie Thomas
HUSKY OIL OPERATIONS is maintaining its Chebucto K-90 well offshore Nova Scotia on tight hole status. The Bow Drill 2, which drilled and tested the Chebucto well, will now move to the Evangeline H98 well suspended earlier this year at 3 365 metres.
A 650 page debt rescheduling agreement was signed Wednesday in Toronto by DOME PETROLEUM and 53 of its lenders covering about 85% of the company's debt but final closing is still subject to several conditions including a successful sale of $350 million of Dome equity by Oct. 5.
By DaleLunan