Casper Daily Tribune Newspaper, May 9, 1919, Page 9

Tribune REPORT OF OPERATIONS AND STATEMENT TO STOCKHOLDERS ISSUED BY THE MIKE HENRY OIL COMPANY INCORPORATED OCTOBER 10TH, 1917, UNDER THE LAWS OF THE STATE OF WYOMING vee General Offices—Unity Temple Bldg., Douglas, Wyo. Eastern O ffices—North American Bldg., Chicago, Ill. Depositories—First National Bank, Douglas, Wyo.; Moline National Bank, Moline, Kan, Attorneys—C. O. Brown, Douglas, Wyo.; W. N. Horner, Chicago, Ill. Properties--Drilling Contracts--Royalty Interests IN THE LEADING OIL FIELDS OF . WYOMING, KANSAS and TEXAS To make a clean-cut statement of operatians—to counteract any biased rumors—to correct unofficial reports or news items appearing in publication that are not in posses- sion of the exact facts—we are herewith submitting a brief review of our organization. This we believe fully demonstrates that a combination of efficient business methods— conservative management and. aggressive policies—has enabled us to make splendid progress in the acquisition and development of our numerous holdings as indicated below: BOVw Kansas Drilling Operations 4 All Kansas drilling operations have hoen paid for and handled by the Mike Henry Oil Co., outright, under contract with the NO ASSIGNMENTS OF PRODUCTION INTER! Co., of Independence, Kansas. TS HAVE BEEN MADE WHATSOEVER. MIKE HENRY KANSAS WELL NO. 1, HALE FIELD, CHAUTAUQUA COUNTY. Drilling op- erations commenced and well spudded in on February 11 MIKE HENRY WELL NO. 2, HALE FIELD, CHAUTAUQUA COUNTY. Present depth of well, 1,675 feet. Telegram received from Drilling Contractors: “Spudded well No. 2, Tuesday, April 22.” LATER REPORTS, DATED’ AY 1: “WELL DOWN 1,240 FEET.” The company has purchased 2,800 feet of casing, which is on the ound, and is being used in No. 2. Casing purchased from the National Supply Co. of legaendoace, Kansas, and paid for outright. In accordance with terms of contract, monies for drilling of first well have been paid in full through our Kansas depository, the Moline National Bank, and the balance through our Wyoming depository, the First National Bank of Douglas. In view of the fact that both oil and gas production is close to the location of the sec- ond well, we fully believe that we will be successful in securing a producer from this effort by drill'ng on this location. The Mike Henry Qi} Co. has purchased the two leases covering the above described drilling operations and paid for same outrigh:, subject to 121/2 per cent royalty. Terms of lease cali for the drilling of 10 or more wells. Texas Operations, Royalty Interests BURKBURNETT FIELD—A 1-6 interest in the entire holdings of the Conservative Oil Co., whose lease adjoins the Roller Tract, upon which, according to recent authentic re- ports, a 4,000-barrel producer was brought in; thus proving this to be a gusher territory. The following newspaper report is in print: DENVER, COLO.—“NEW POOL FOUND IN BURKBURNETT—Another new pool has been discovered in the neighborhood of Burkburnett, this one being to the south of the townsite. In this new district, the pioneer well is on the Roller lease, three and a quarter miles directly south of town, which came in as a 4,000-barrel gusher from the Fowler sand at 1,726 feet.” The new producer is 1,387 feet from the lease of the Conservative Oil company. The Conservative Oil company’s Burkburnett lease, in which we have purchased the above described interest, is now entirely surrounded by production. Drilling operations to start immediately. The acreage in this field can be closely drilled. In anticipation of early production the stockholders of the Mike Henry Oil Company are elated over the possibilities of a sharp increase in stock values. __ ELECTRA OIL FIELDS—In addition to the above acquired interests our contract with the Conservative Oil Co. calls for a one-sixth interest of their entire holdings in the Electra fields, the location of their lease being adjacent to producing wells. Wyoming Operations and Drilling Contracts PROPERTIES—Decded land fees, state leases, assignments and mineral placer oil claims, Lusk field; Lance, Buck and Harney Creek structures; Irvine Basin; Osage Field, Upton-Thornton district; West and South Doug- LUSK FIELD NO. 1-— Negotiations for drilling contract concluded by the Mike Henry Oil company April 26 for immediate drilling of 280 acres located in Section 16, Township 34, Range 64. This acreage is surrounded by hold- ings of the Ohio, Midwest, Union and other Standard Of subsidiaries; and within a short distance south- east of the parent well of the Ohio Oil Co. on section 36, drilling contractors having agreed to put up $5,000 cash deposit with the First National Bank of Douglas to commence drilling within 60 days of the date of execution of the contract. NO. 2— : Our entire holdings consisting of 320 acres in the THE COMPANY IS _ IN north half of Section 23, Township 34, Range 67, purchased outright by the Mike Henry Oil company, assigned to the Sunset Oil company, for whom the Union Oil company of California, a Standard Oil sub- sidiary, are drilling. Terms of assignment call for op- erations to commence within eight months from date of same 12-28-18. The Union Oil Co. has one deep test well on the adjoining section to our lease, this well having reached a depth of over 3,000 feet, and according to reports is now on top of the oil sands. They have other rigs on locations surrounding our lease. This will prove up the Mike Henry company’s properties, and our own contract with these people will give us a sub- A SPLENDID FINANCIAL CONDITION AND las structures; Big Muddy; Cheyenne River Basin; Brenning Basin—Total holdings approximately 8,000 acres. stantial net royalty without further expense of any kind. In a recent issue of the American Oil Journal (recognized as the most reliable oil publication in the country), the following article appeared on their re- port of the Buck and Lance Creek fields: “The Mike Henry Oil company, also a Douglas firm, has secured leases north of Lusk and within a short distance of the Ohio Oil company’s discovery well. Part of this acreage comprises school land, and therefore, is considered free from govern- ALL OBLIGATIONS ARE ment restrictions. The Mike Henry com- pany expects to have its holdings drilled on a royalty basis.” Negotiations now pending for several drilling con- tracts on royalty basis for additional leases totaling 280 acres, held by the Company in the Lance Creek field. These new agreements to take the place of others wherein drilling contractors and operating companies failed to meet our terms and requirements. Detailed reports will be given for publication as soon as our attorneys and executive committee have com- pleted. BEING MET AS THEY MATURE. To Establish Confidence and Prove Honesty of Purpose No salaries are paid to Officers or Directors of the Company fer services renadered—43 per cent of entire capitalization—Directors stock interests in payment for leases and services held in escrow, in agreement with Securities Division, State of Illinois. This action was taken for the protection of stockholders at the time the company was incorporated and stock placed in escrow with our Depository, the First National Bank of Douglas —for 1918 and 1919 licensed to sell stock by the Illinois Securities Division, Blue Sky Department—1919 license number 128, issued in March. Complete reports of operations, financial statement copies of leases fur- nished to Secretary of State of Illineis,, in accord with statutory requirements—April 15, 1919, a comprehensive report, with exhibits attached, mailed to Federal Trade Commission, Washington, D. C. All Stock Sales Withdrawn Tuesday, April 22nd, 1919 In accordance with our half page announcement in the Douglas Enterprise, Tuesday, April 22, the sale of Mike Henry stock was positively discontinued, by unanimous action of the Executive Board of the Company; and brokers were notified accordingly. No further stock has been issued since that date, except that which was paid for under option to fiscal agents. Wyoming in particular, presents unlimited opportunities to develop ‘its vast petroleum deposits. To accomplish this object the enlistment of outside capital is necessary. Oil operators working under a Wyoming state charter backed by Wyoming men, whose ability and integrity is beyond a question of doubt—should be given every possible encouragement in their legitimate attempts to produce results. RESPECTFULLY SUBMITTED J. R. HYLTON, Secretary - Mike Henry Oil Company , CHAS. A, GUENTHER, General Manager MIKE HENRY, President PAGE NINE \lwergees || | Axexexenes Ul I