Turner Valley Drilling Operations:

Wells: Crude oil producing 61; Testing 1; Gas wells 104; Drilling 17; Resuming 2; Standing 8; To spud 10. TOTAL NOVEMBER l9th: 203.

Field Crude Oil Quota: 12,590 bbls daily. Field production rate: 60,700 bbls approx.

Two key North Turner Valley tests which will have an important bearing on future development in this area are scheduled for completion within a month. HOME MILLARVILLE No. 2, about 1 ¾ miles northwest of producer Royalite 29, topped the Madison lime Friday at 8,045 feet, was running 6 5/8" casing to bottom on Saturday, and will resume drilling to completion in a week. ROYALITE No. 35, about half a mile north and slightly west of Royalite 29, was drilling at 6,248 feet Saturday with the lime expected during the weekend. No. 35 has logged very close to No. 29 and is considered within the proven area. Home 2 is considerably lower on structures but only about 350 ft lower than Anglo Canadian 1, deepest South Turner Valley producer. Home is about 1,800 ft higher on structure than Okalta 6, only Turner Valley well yet to have encountered water in the lime.

ANGLO CANADIAN No. 1, recently completed key test in the South End, is operating at a temporary quota of 306 bbls per day pending a third acid treatment scheduled for next Tuesday. Two light acid shots have been applied to each porous zone to date. A 24-hour test made Thursday showed production of 718 bbls of 40.2 degrees Baume crude. Gas-oil ratio is still very low, being about 800 cu ft per bbl. Bottom hole pressure is by far the highest in the field, being measured at 2,600 pounds per square inch. Official government test will be made following the next acid shot.

OKALTA No. 6 crew, who recently cemented off the lower porous zone to shut off water intrusion are still swabbing and bringing up considerable water. It is feared the cement job failed to effect water shut-off and that a second job will be necessary. Swabbing is being carried on through the production tubing. Although the end of the tubing is 1,300 ft off bottom, cement was pushed up the hole due to various pressures and has securely set the base of the tubing to the casing This must be milled out before test lag of the upper lime for production can be completed.

LETHBRIDGE PETE is making arrangements to drill a well on its 40 acre lease in lsd 8 24-19-3w5, a mile due north of the Sunray test in Central Turner Valley. Work on cellar, under direction of Empire Drilling Co., is expected to start in a few days.

EAST CREST OILS have completed arrangements for financing of their test just north of Anglo 1. C.C. Gross & Co. has already disposed of 15% Gross Royalty on the well netting East Crest $60,000, and has now underwritten 20% Preferred Net royalty to net the company $64,000. The well is now at 2,655 ft, using rotary equipment. Interest in well will be divided: Gross Royalties payable OKALTA OILS 10% or 15% dependent on size of well; Crown 10%; in hands of public 15%. Preferred Net royalties in hands of public 20%. Preferred Net holders will receive 40% Net royalty from production until $3,200 has been repaid on each 1%. Thereafter royalties will revert to straight nets and EAST CREST OILS will receive either 45% or 40% Net on revenue. While repayment is being made on preferred East Crest will receive either 25% or 20% Net.

COMMAND No. 1 is drilling below 7,683 ft, 277 ft in the lime. ROYALITE No. 34 is 265 ft, in the lime below 7,289 ft. WEST TURNER No, 3 is below 7,485 ft, 105 ft in the lime. PRODUCERS CRUDE No. 1 topped the lime last Sunday at 7,565 ft, has set casing and will drill out during the weekend. Following is Saturday's complete Turner Valley drilling report. After each well name is listed, Location; Present depth; Type of drilling rig (Rotary or Standard); Footage made during week; and Report on activity.