Turner Valley Operations

Crude oil producing (under set quite) 137; Testing production 2; Gas wells (operating) 80; Drilling 30; To spud 12; Standing 8; Total: 269 wells.

Daily Field Allowable (139 wells): 26,000 bbls (including 420 bbls for 2 testing wells).

Testing: HOME 6, ROYALITE 54. Drilling Lime: ANGLO PHILLIPS 2; OKALTA 10; INDEPENDENT 1.

Turner Valley's active drilling operations rose to still another new high this week, with the spudding in on Friday evening of ALBERTA PACIFIC ROYALTIES No. 1 and the resumption of operations at LION-SUNRAY No.1. On Saturday morning thirty wells were underway in the Alberta Foothills field. Alberta Pacific No. 1, located on the Central West Flank in lsd 14 6-19-2w5, is being drilled under contract by Snyder & Head Ltd. Lion-Sunray No. 1, on the Central Flank in lsd 8 13-19-3w5, was shut down some weeks ago at 6,777 feet pending clarification of agreements for financing, is resuming under supervision of Commonwealth Drilling Co. The well is believed within 1,100 feet of the Madison objective.

North End test MAJOR OIL INVESTMENTS No. 1 was drilling at 6,314 feet on Saturday morning, with the bit reported in the Poker Chip shale, and the limestone expected at any time, The three wells drilling in the Madison lime reported as follows Saturday morning; ANGLO CANADIAN PHILLIPS No, 2, below 7,584 feet 314 feet in the lime; OKALTA ROYALTIES No. 10, below 7,764 facto 259 feet in the lime; INDEPENDENT ROYALTIES No. 1, below 7,886 feet, 131 feet in the Madison.

Four new well-sites were staked in Turner Valley this week. The NORTHWEST COMPANY has staked location for its NORTHWEST-HUDSON BAY No. 6 well in lsd 7 8-18-2W5, in the Far South end of the field, and three-eighths of a mile southwest of the present most southerly prod Northwest H. B. No.2. 5% Gross Royalty is payable to both the HUDSON BAY CO and the HUDSON BAY OIL & GAS CO. The 90% Net will go to NORTHWEST until drill-costs are recovered and will then be shared evenly by Northwest and the Hudson Bay Oil & Gas Co.

ROYALITE OIL CO and MODEL OILS LTD will jointly drill ROYALITE-MODEL No. 1 well in lsd 1 22-20-3w5, in the north producing section of the field. The new site is 100 feet west of the center of the lsd. Model No. 3, an old small producer is in the northeast corner of the same lsd. It will be plugged and abandoned when the new test reaches productions. The Royalite No. 43 well, a large producer lies quarter of a mile west of the now well site.

DRILLERS & PRODUCERS LTD, recently formed company, has staked location for its No. 1 well in lsd 13 7-19-2w5 and its No. 2 in lsd 12 of the same section. No.1 well, which offsets good producer Calmont Northwest No.1 to the southwest, will be drilled with the rotary rig now at the McColl-Frontenac test at Moose Dome. It will likely spud during the coming month. No. 2 is slated to spud by July lst. Drillers & Producers Ltd. is capitalized at 1,000,000 shares NPV and $500,000 in 6% Five Year Sinking Fund Debentures. Holding 13 well-sites on the Central Flank of Turner Valley the company has purchased the assets of Newell & Chandler Ltd. (including four rotary rigs and a cable rig), and will function both as a drilling and a producing company.