Casper Daily Tribune Newspaper, March 18, 1922, Page 8

AGE EIGHT HOLLER OIL & REFINING FIRM 15 P INIQUE AMONG ROYALTY CONCERNS he Casper Daily Cridune nant Gusher of Magnolia Company Is Located on Holdings in Mexia District; Head of Com- be: pany Holds Confidence of Investors PURDON, Tex., March 27.—Towns and localities in Texas that very few people have ever heard of have a habit of suddenly coming into great prominence through the discovery of Faw people know anything about Purdon as yet. It i$ @ mighty small spot on the map but it is fast putting on its city attire and getting itself ready for seme big things to happen | there soon. ‘This town end its inhabitants are MEXIA, Texas, March 18.—Of the new and substantial |);xe most all the other places where nterprises financed within the past few weeks, the Roller Oil |on nas been found. They all bettered t Refining company perhaps occupies the most unique posi-|tht some day someone would come ion, and the center of the stage in the royalty field. This is due to more than one event, and for more than one};, a quiet way and walt unt! the ofl eason. On March 4, the newspapers told to the world thatprospector thought enough of AMOUNT OF PETROLEUM IN MEXIA DISTRICT DEFIES ALL ESTIMATES [Estimates Run From 16,000 to 75,000 Barrels an|s"smevwsisn was, sowct at set Acre; One Hundred and Fifty Wells Flowing and Field Production Is Increasing me more gusher had bem dded te xe Mexia giants. This one was tho ‘oft brought im by the Magnolia com- any, one of the “big operators” on ae Roller 6T-acre lease, and at the ame time extending the proven area bout two miles ‘The initial flow of this great off well ms 24,000 barreis per day, which im- rediately put it in the gusher class iong with the 1 wells, rated among ‘The history of the organization of he Roller Of & Refining company is ot a mere chnrmed statement of rords. It is a substantial, profit-paying ompany, based on the essential ele~ ients in the of and refining busin ast as had been all previou: gises in which Mr. Ro and. As a merchant and vusiness man, ucatton, a care- man of wealth and edi nl successful practical citizen, with he welfare of all at heart. HL. C. Rol ar beyond any question of a doubt ommands the love and respect of all ith whom he has come in contact. ving in the city of Mexia for many ears, A respected existence that may pointed to with pride, neither H. ¢ toller nor his neighbors, knew that he gas destincd to in a few months be- ‘ome one of the most successful of “1 men, nor even that he was the swner of hundred of acres that Inter sroved oft bearing, and fae sae iy st priceless in their value. Not un- fl the renowned Col. A. E. Humph- ess, and his equally celebrated part- yer, Geologist F. Julius Toba, enaithe ntic Magnolia Petroleum = me Atlantic Refining and Prodneing company, end the Shafer interests, liscovered by thelr most thorough ge0- ogical explorations for ofl locations hat the Roller tracts wero right in he mi¢st of what seemed among the yest of their geological reck: 5s— yot until then did H. C. Roller realize what hidden millions might be ht On the producing property, Tract So. 1 which was then H. C. Roller’s ‘arin of 54 acres, is now located in yne of the most famous tracts of ol! and in the world. Well No, 2 on this ‘arm came in with an initial flow of 24,000 barrels per day. Other wells gave been completed upon this farm act, and all have been of gusher sortions. The Atlantic Oil and TF , one of tho largest big companies in and ts and most ¢ he field has lease on this jrilling it to greater production. One- sighth of every eighth barrel of oll : this tract goes to Roller Oil es any, the right title & Refining comp: and royalty of all o! the Roller acre- age, having bene turned Into the hold- wngs of the Roller Oil & Refining com- pany. ‘When ft is figured that approxtmate- ty 30,000 barrels of ol! per day are pay- ing tribute in rofnities expanse free to the Rotter Oil Refining company, some idea of tho vast daily wealth flowing into the company’s treasury may be conceived. It is from these royalty interests that stockholders in this company will receive dividends on this coming March 20, Roller tract No. 2 in the Fish Pond! sector is being drilled to produc as well after well comes > Shafer interests. A full 1-16 rx ct of 66 acres is among the assets of the Roller Oil & Refining company. Tract No. consists of 57 acres lying just t of Mexia. The Magnolia Pe the heavies successfull brov as the well No. 1 or Stroud woll, very close to this acreare. The farm is the Hi Refining corr are in the other big companies. isme of tho Stroud wel means of having this 1 withont dela alty righ Ol & Refini No. 1. ‘The Navarro county lease on thirty Drilling operations rway, | will give a soven-clght rs of the off produced on this property. ‘With the prox producing s0 he ho with i forms one of companies | The operating on this nothing but! will hig eucce r ed for them.| “I am confi . ts not| Will make a big well,” said Hildreth. Other acreage tn ownersh interest of Roller Oi & & c t acreage in no stretch o magination to) ®" a the test to make me rich if we helieve that this {s an opportunity | 6% Ms fre aos cay - © public have not offered | Hildre been dashing in an See atone the paeaie tandarg, {Out of Dallas for two months, leasing ‘Texas, Gulf, Magnolia Humbie| #¢rease all through the Hast Texas and other like compan: t before|O belt. He clamped down on 100 they became so rich and profitable, acres in Kaufman county the other that no stock was for sale emcopting | Pt cacrat thet ee eS ee at very greatly Increased price par value $1 a share non- Roller Of] & Refining com: will not long remain to be thig price, Actual reduction and dividends with careful management for future ae the reasos, It was a dig the guneral public when H. C. passed title of to the Rofler Of é public offering « stock was aut! ay fo} Rolle and operations | that of the| tive properties now fly, and a dividend for a compary hardly a1 1 headed by a man ike} Hild s associates | Pur ‘The mabie | aggressive and off properties block o: the country will witness durin; to rainfall, the one answering could take the averago rainfall of the past 10 years and make his estimate. From the way storago is being pro- vided the pipelines extended to the field, it is very evident to those who ko the oil business theirs that they 1 that the production here has been untouched, The company spending millions forms an opinion beforehand and the conclusion of these are pointed to usually as more than moat any oth- er expressed, Leading geologists, and thers who study such matters havo made estimates as to the volume of crudo output with reliable geological data as the basis for their figures. The number of acres in the field, and the number of barrels per acre be- Ing known, the approximate produc- tion of the field might be glimpsed and then there would be wonder in no layman's mind because of the titanic expenditures made by the great com- panies who are coming to Mexia to get it. Along this Iine, in the Inst insues of The Oll and Gas Journal of Tulsa, in the Mexta Weekly Review, the writer observed: It is too early to figure what the life of the wells in the Mexia field will be, but it is certain that those on the eastern side, where a small flush production was derived will last long. |'Tho sticking ability of the Mexia field, pointed out by experts, depends | upon the is used in drilling, . y to remove what nown as overable oll. Then pre are other phases that must be watched, namely the spacing of wells, he decline of the gas pressure and the encroachment of salt water, and the porosity of th nd. That the east side 1s not being ed very rapidly is due to the fact that the Humphreys Oil company con- rols the bulk of the acreage, will give that direction the best of it where the fe of wells {s concerned. If the cast side had been drilled as rapidly as the west has been, the story would be , different one, but until the east side further tested it 1s going to bo a rd matter to determine what the upproximate production per acre at Mexia will be, According to W. A. Reiter, who is probably better posted the field than any other persons, ® approximate number of barrels oduced from an acre at Mexia ‘ould be 34,911 barrels, Eestimated Out Put Per Acre, side of the field, as a good line has side o fthe , a8 @ good line has not as yet been y |side, although n estimate shows that fon should produce approx!- 0 barrels to the ac the west side of Mexia 1 produce as high as 75,000 bar- per acre, When the novice sees what is going and then carefully looks up © record as to the proven acreage, nowing that it is extending each Kk, yet undefined, he can easily sy w roduced on the east | along end dri a well and find oll. They have been content to live along the How much crude petroleum will the Mexia field produce before it has become exhauste: That’s a question which some are asking and one that some have even hazarded a guess on. easier at this stage of the game to say how much rainfall d? It would probably be i a given period of time. As reach a right conclusion that there are yet vast quantities of crude avafiable and discovered here. It i# generally; conceded that tn the section now let. ed as proven territory that only about, 10 per cent of its has been touched by, the bit. This is due in a large to the empire of ofl of the Humphreys’ Oll company east of the Golden Lane but proven as well as to the acreage other companies hold along] the Colden Lane where hundreds of wells are now going down. At present. over ten million barrels of oil have been brought to surface. If less than 10 per cent of the ofl territory has! been tapped, then the fact ts outstand- ing that .under natural conditions, only a very small per cent of tho) field’s crude Is represented in this ten, million barrels, To say that tho field had seen 10) MEIXTA, ‘Texas, March I8—~ Bugene (Trapshooter) Reffly carries a horseshoe concealed in every pock- et, declared a prominent oil opera- tor the other night. The luck of ‘Trapshooter is simply-uncanny, vol- unteered this of] man. “Show me?” inquired one of tho party. “Well, take the Cain gusher at Pierce Junction, Gulf Coast field, for instance.” said the bperator, “Trapshooter coaxed that lease away from the Gulf Production company, then induced the firm of Snowden & McSweeney to drill the lease and carry Reilly for an overriding roy- alty. “The test came in for 20,000 bar- rels and started a big boum around Houston last August. Pierce Junc- tion came in for a tremendous play, Reilly collected his overriding roy- alty off the flush production from the Cain gusher, then offered to sell out. Snowden & McSweeney, operators of the well, snapped his offer and bought the overriding roy- alty for a fancy price. Three days later the Cain well began to show basto sediment and salt water, Now if you don’t call that horse luck, YN buy ‘white mule’ for the party,” Desdemona Coup, Warren Wagner, B. J, Johnson and Joe Duke were not the only ones that madé big Killings in the Desdemona field, ‘Trapshooter Reil- ly gumshoed into Desddmona short- ly after the big Duke well came in for large production and snapped Up @ lease, ten acres, near the dis- trict that afterward became famous for its gusher production, MIXIA, Texas, March 18.—¥, EB, Hildreth, ofl operator, dropped into to see the Purlfoy drilled in. th and Bill Shan drilled the by to 1800 feet, then sold the well. ® wera on the gro ated the cap r was terrific. ‘0 the I control s when the ell, |drilia at the interesting stage In that neck of the woods, Franklin County, | Hilldreth’s latest ‘buy was two tracts \fm Franklin county near Col Hum | phreys Corey No. i. “Humphreys must heye something up bis sleeve in Franklin county,” said Hildreth. “My scouts huve handed me some very encouraging information r I got in at © | ‘BiG OPERATOR BUYS TRACTS IN KAUFMAN, FRANKLIN COUNTIES cased. Whenever they string pipe in the hole they must have something in sight.” Near B-emond. Bremond is getting a good play these days on account of’ the Mexia- Denny's napp. ‘They have yun plpe into this hale and are gotting ready to rill it in, Hildreth bought acreage near the well about the time Jesse K. Hughes leased $00 acres around the Knapp test. Hughes is rated cne uf the lucky boys in Mexia, AN the big suns are now stringing with Hughes. Johnson County. Cleburne is still pulling hard for the Southard test in Johnson county, ‘The erflling crew in this operating have been trying to connect up wilh the deep pay found northwest in Stephens county, Texas. Hildreth says he bought some “protection” acreage around the Southard test, which ts now below 8,500 feet. Fort Worth business men have been helping this test. A well that near Fort Worth would stimulate business in the Pan- ther City. Optimistic OH Man. ¥. B. Hildreth ts one of the most optimistic off men in the Dallas dis: trict. He says he looks for another big field, north of Mexia and predicts d tests that h to justify being that the next field will be foumg close to Dallas, URDON REGION OF TEXAS LOOKS LIKE GOOD BET FOR OIL DRIZL showings to undertake its develop. ment. The good citizens of this little village are alive to the enormous pos- {sibilities which are in store for them. The fact that while the town is situat- ed on # ralroad line, it is a little off of the main, traveled thoroughfares, |is perhaps the reason why some en- terprising off magnates have not been drilling long before now. It was the good fortune of the Se the-structure worked out {s among the bes* defined jof arty that has oanght the scrutiniz- |ing eye-of the reologist and ofl opera- tor. No sooner had this company spuitted in until it began to attract the attention of others. There are 0W locations made fora dosen or more wells. Some hive already start. |e drilling and there is going to be a | race to see who gets the-bie pay first. ‘The Security Productmg and Drill- tng company scems to have the inside track in the field. Tt is understood that the company has an imm=ngo jot of acreage tied up and is adding more wherever ft can get @ likely looking lease, Its well has been shut down for @ fow Gaya nwalting casing to test ' 1500 feet. ‘The casing is now arriv- ing and drilling and testing have been resumed. It waa Tearnett-et the company’s of- lees In Fort Worth that regardiess of the well which the company expects to get at the depth it now is, it is its intention to drill deep tests on this structure ns fast as man and material cam do the work. It is the opinion of company officials that the large pro- duction will be found either in the |Wooubine sand, which should be en- countered around 2800 fest, or in the Trinity which should be found at about 3000 feet. When all matters are arranged so that drilling can be push- ed rapidly it will only be a short time until a deeper test can be completed. ‘per cent of the crude that it will ever produce extracted in the brief span of eight months would be to guess hat all of fhe one hundred and fifty wells now flowing natural would stop today, that they had run their limit ‘and the untouched domatn of erude would be, per acre, only as productive as the producing part of the field has been up until date. But the wells are still pushing it out. Guages are rapidly rising, the pipelines are filling and before night fall another immense quantity of crude will be stored from wells that are young and strong. DOES TRAPSHOOTER REILLY CARRY OIL HORSESHOE? LUCK IN GULF COAST FIELD RUNS TRUE TO FORM While Reilly and his associates ‘were rigging up to drill several big wells were drilled around thetr acro- age, About this time a buyer for the Cassidy Oil company asked Rell- ly far a price on five acres and sold holf the acreage for more than the original ten-acre lease cost, Tho Cassidy Of] company and the Reilly Syndicate both drilled in good wells and these two wells aro still producing and earning dividends for the operating organizations, Most of the Desdemona wells failed to Produce for any great length of time, but the ten-acre lease Reilly located is still make some oll. ¥armer in Luck, Dennis Kapes, a farmer near El- dorado, Ark., can thank Trapshoot- er Reilly for advice that proved high- ly profitable, Before the Trapshoot- er well blew tn, Reilly and Al Derby, Prominent aKnsas operator, decided to buy an oll lease on Kapes’ 160- acre farm, one-half a mfle from the Trapshooter drill, Reilly negotiat- ed the trade with Kapes and Derby agreed to take half the lease, Trap- shooter paid $16,000 for the lease. The next day Derby decided that he did not care to take his end of the trade and Rellly closed for only 80 acres of the Kapea farm, “Whatll I do with the other eighty, keep it?” inquired Kapes. “Sure thing, hold an to it,” replied Reilly, ‘Youll get $40,000 for it inside of 30 days. Forty-elght hours afterward Reil- ty sold 50 per cent of his 80 acres for $6,000, Without knewing that Reilly had already parted with half of the 80- acre tract, Al Derby hunted up Reil- ly and asked to be taken in again. “All right,” said Reilly, “write me out a check for $1,000.” Derby passed over the eheck, A week later the Trapshooter gusher blew tn for $17,000 barrels and the the firm of Reilly & Derby divided $40,000 profit, 50-50, on the original 80-acre tract, “My $1,000 gets me 50-50 en the whole 80acre tract" interrogated Derhy, “Well, I sold one-half of the lease befare you came in the second time, but I'm riding you for a full 50 per cent interest In alj the profit on the entire 80-acre tract,” sald Reilly, Dennis Kapes, tha farmer, sold ‘his 80 acres for a handsome profit. Sometimes a Duster, “Hivery ofl hole does not produce of," said Reilly. “TE drilled a duster in the Pecos country, southwestern ‘Texas, but we sold over $50,000 worth ef acreage around the hole, which helped pay bills. {Tt like to wildcat occassional: PROGRESS MADE | FINANCING FOR TEXAS DRILLING Huey-Cotton Syndicate’s Cam- paign Making Headway and Location of Well Is Pending. company believe that the “48 to 1” slogan will become almost as famous as “Heinz 5ST Variety” trade term. Definite site for location of No. 1 well will be decited by the company’s geologist within a few days, and ac- tive work in connection with moving the derrick timbers will bo started immediately after site has been se- lected. There ts intense activity in Kauf- man county field, as evidenced by a raise in price of all acreage in tho vicinity of the “48 for 1" company’s holdings. ‘The following, taken from The Ot) Gazette, shows plainly that the value of Huey-Cotton leases are constantly soaring: “Operators are watching with spe- clal interest one or two deep tests for oll that are nearing the critical depths in this county and over in Rains, but lease activity continues around practicnily all of the wells in ba Reena and that means about all of ft." “It is sala here that the average Price for leases is $70 an acre now, and according to operators here, the highest price in the county to date is 3200. This was an exceptional in- stance, however.” “The Katkins test of the Roscoo and Collett interests on the Pearson survey {s drilling through the Aur- tn chalk at below 2,700 fect, and 28 already encountered gas. Over in Rains county the Dawson No. 1 is drilling below 2,350 feet in blue shale and gumbo, which ts considered fa- vorable. In both counties many new tests have been spudded tn.” “The Nova Scotia well of the Texas Petroleum company on the Maria Dolores tract in the southwestern Part of the county ts drilling in blue og at a depth of 2,300 fest, hav- ing just passed throug! pint th the Austin “The Grimnan No. 1 of the Pan- handle Refining company, located on the Bennett survey, two miles east of Terrell, is down 2,000 fect and has evinced strong showings of gas and Junction, Texas, I decided to give Mexia a whirl and here T am =o I followed Colonel Wortham, and I believe T am going to get a bir well on the Couch. Nothing Ike trying, anyway. You |cannot make any money sitting still. I believe in being ‘up and doing all the time.’ ” FREE FOR THREE MONTHS Texas Oil Bulletin Soe weekly and edited by ofl and Covers 'the whole insurance bef ¥ Don't wait for the hook and Iad- der company; they don't sell in- surance. We do, ea ASfr1 See Page 7 of This Issue I WILL ~~ I will, because I said I would. I will, because over a thousand men and women, scat- tered far and wide over this republic; believed I would. I will, because hundreds of oil operators up and down the Mid-Continent field expect me to. ' *'_ | will complete the Mexia Extension Syndicate’s Well No. 1 on 400 acres in the southeast extension of the Mexia pool in a few weeks now. = r , lam drilling below 2,200 feet today. an ae The formations I have encountered in the well are checking almost identically with those of the mammoth gushers of Mexia’s golden lane. ay I believe that the derrick of our No. 1 Well on 400 acres in the southeast extension stands squarely above a vast reservoir of oil, which if pierced by our drill will make hundreds of thousands of dollars for our stockholders and will force the world to acknowledge me, the Colonel Humphreys of a new and sensationally productive oil field. Latte | - I feel in my heart that it is just a matter of weeks now until I bring in a volcano of petroleum on our 400-acre wwe 4 sal oot gm sw. { = lease in the southeast extension that will make the lease . and well readily salable at several hundred thousand c dollars, \@ Think what that would mean to our thousand-odd stockholders; fancy if you can, how you would feel if yo did not heed this message today. ba With our small capitalization of only $75,000, with our low par value of 10 cents per share for fully-paid, non- assessable, transferrable units. ; With a gigantic gusher on our 400-acre lease and the big companies bidding against one another for this then coveted tract, conjure in your mind, if you can, the fabu- lous profits this project will yield to its stockholders. I will drill carefully and speedily. I will complete the Mexia Extension Syndicate Well No. 1 with allthe haste that careful drilling permits. x When Well No. 1 is completed a gusher I pled; Dr. Hoover and myself to stand ready to sell the well‘and ee at the highest possible price that the market will ar. : ; 4 I pledge Dr. Hoover and myself to the definite policy of an immediate sale and a quick distribution of the pro- %. ceeds and profits among our stockholders. Fi > I am drilling below 2,200 feet; our financing is nearly over; the successful conclusion of this project seems near now. t+ eee | ES When Well No. 1 iscompleted a gusher, any remaining unsold shares in this syndicate will not be offered to the public. rs ’ Present indications force me to the conclusion that in justice to our present family of shareholders the price of our units must be advanced soon. of a ¥ 8 A q . = ®. a tn = 4 z ' This may be the last time I will come to the readers of - The Casper Daily Tribune with an invitation for them to » join us in this deal. ‘ , =< » >, Isayit MAY be the last time—because— ~- = > “i Well No. 1 is two-thirds of the way down—our financ- ~~ - ing is practically over—our shares are liable to advance + r in price any day now. ¥ ro Need I say more? I cannot coax or cajole you into this ° enterprise against your better judgment. * T believe we are on the threshold of triumph and I ; want you with us. i 7 cca ® ' The coupon below may prove to be your admission ticket to a castle on Easy Street. Clip it out. Use it NOW! C. L. Anderson. Mexia Extension pote Panag gee Syndicate Fort Worth, Texas” “ att vay $75,000 Capital Par Value 10c Gentlemen: Enclosed please find $_------__ Units Fully Paid and Syacheate ot Ton Goats (280) par Vale Dr, M. W. Hoover - Charley Anderson Name. -—--—- = Trustees Dan Waggoner Bldg. Se Ga ae Fort Worth, Texas SE eee See ee SORA dee ie ; eX