Evening Star Newspaper, April 29, 1923, Page 31

Page views left: 0

You have reached the hourly page view limit. Unlock higher limit to our entire archive!

Subscribers enjoy higher page view limit, downloads, and exclusive features.

Text content (automatically generated)

- FINANCIAL.” Western States THE SUNDAY STAR, WASHINGTON, D. C., APRIL 29. 1923-PART T. 'FINANCUVAL. 01l Corporation Incorporated under the Laws of Delaware ’ : 350 Madison Avenue, New York City Three Principal Operating Offices: — Los Angeles, California; Tulsa, Oklahoma; Sheridan. Wyoming Capital Stock Authorized, Shares Ten Dollars ($10), all Common - $20,000,000 Capital Stock Issued, full paid - $4,100,000 OFFICERS HON. J. V. McCLINTIC, President WM. E. ALLAUN, Vice-President C. H. ROWAN, Secretary and Treasurer DIRECTORS —— C. N. HASKELL (Chairman of Board of Middle States Oil Corporation and The Southern States Oil Corporation) SCOTT FERRIS (President of The Southern States Oil Corporation) P. D. SAKLATVALA (President of Middle States Oil Corporation) WESTERN STATES OIL CORPORATION was formed for the purpose of conducting the oil and gas producing and marketing business, chiefly in the States of Wyoming, Montana, and California, but in acquiring properties it has included valuable acreage and preduction in the Mid-Continent Field as well. The policy of acquiring developed and producing acreage, equipment and things appertaining thereto, to the extent of at least seventy-five percent (75%) of available capital at all times is favored by the Company management, and these acquisitions usually include areas of undeveloped acreage. In pursuance of this policy, the following acquisitions have been made,—wherein the WESTERN STATES OIL CORPORATION owns all of the stock, or more than the control of the Common Stock of the following Companies and properties :— 1. REPUBLIC PRODUCING COMPANY. 2. MILES OIL CORPORATION. 3—PETERS PETROLEUM CORPORATION. Daily Capacity Oil Production Total Acreage Total Producing Wells 9,240 Barrels 69,430 . 153 Total Drilling Wells 24 This Production is Fully Guaranteed to Western States Oil Corporation A more detailed statement as to the assets and properties of WESTERN STATES OIL CORPO- RATION'’S subsidiaries is appended hereto. MIDDLE STATES OIL CORPORATION and THE SOUTHERN STATES OIL CORPORA- TION, being the two largest stockholders of WESTERN STATES OIL CORPORATION, and repre- sented on the Board of Directors and Executive Committee of WESTERN STATES OIL CORPORA- TION, have our co-operation in pursuing the policies of those two Companies in the general conduct of business, production of oil and gas, and dealing in those commodities, and in providing the equip- ment for necessary transportation and storage upon the general policy that three-fourths of the avail- able capital of the Company shall be employed in proven territory and in tangible assets, relieved of speculative features of new oil development, to the end that our stockholders should have at all times the opportunity of a stable stock, readily salable above its par value, supported and justified by an early dividend basis of not less than Twelve percent (12%) per annum. That not more than the remaining one-fourth of the available capital shall be employed in new oil development work, to the end that addi- tional income to our stockholders may be justified by this new development work. All persons should understand that this new oil development work is speculative and may, or may not have profitable results. We can only say that the entire management of our Company will use their best judgment and most active efforts, and particularly in the territory where we are developing it is reasonable to expect very gratifying results in the new development department. These same policies, pursued in large part in MIDDLE STATES OIL CORPORATION and in SOUTHERN STATES OIL CORPORATION, have, during the entire life of both of these Corpora- tions, produced unusually stable and profitable results to their stockholders. MIDDLE STATES OIL CORPORATION, now in its seventh year, began money dividend pay- ments in October, 1917, at the rate of Six percent (6%) per annum, until April, 1918; from that time to the present, regular Twelve percent (1205) per annum, with an occasional extra money dividend, and a total of One hundred and ninety-tws gercent (1929) free stock allotment, and additional privileges from time to time. Results to stockholders of MZPYLE STATES OIL CORPORATION, including those who orig- inally paid Seventeen dollars s&~ afty cents ($17.50) for a Ten dollar ($10) share, are that there never has been a time that the stockholder could not sell his original stock, with its accumulations, at a price that would yield him a handsome profit on his original investment, in addition to the fact that he has received more than Twenty percent (209%) per annum in cash dividends on his original investment. MIDDLE STATES stock, traded in on the New York Stock Exchange since October, 1919, has never sold below par, even in the long, strenuous Bear market following the war; and in addition to the dis- tributions of money and stock heretofore made, it is the belief of the management that the steady efforts to accumulate assets of permanent earning value and to develop oil production will insure continued stability and better results than even the reasonable optimist has anticipated. THE SOUTHERN STATES OIL CORPORATION, organized about one year ago, selling its Ten dollar ($10) shares of Common Stock in the beginning at about Twelve and one-half dollars ($12.50) per share, began paying One percent (19) monthly cash dividends in July, 1922, and is regularly mak- ing these monthly payments. In addition to the money dividends, and based on new development work and acquisitions, THE SOUTHERN STATES OIL CORPORATION'S stockholders have received three quarterly stock allotments, totaling atove Twenty-three percent (23%) of their original holdings. SOUTHERN STATE'S stock is now being traded in on the New York Curb Market at around Twenty- four dollars ($24) per share. This general policy of conducting the oil producing. business, we believe, eliminates the chance for loss. insures moderate income, and provides possible opportunity for very large income, without danger of loss greater than would be incurred in usual lines of business. Both MIDDLE STATES OIL CORPORATION and SOUTHERN STATES favor the policy of carrying no bonded or other indebtedness, other than operating and incidental expenses. ADDITIONAL CAPITAL From the foregoing statements and inventories, it will be observed we have excellent opportunity for the use of greater working capital, and to that end, we have sold additional capital stock to Unity Securities Corporation, which is now offering the same for resale. We can fairly assume the early beginning of dividend payments, and as soon as practicable, proper application will be made to list this stock on public exchanges. WESTERN STATES OIL CORPORATION, April 28th, 1923. By J. V. McCLINTIC, President. THE UNDERSIGNED, members of Executive Committee of WESTERN STATES OIL CORPORATION, which makes the foregoing statement.—the accuracy of which is certified by managing officers of the several subsidiary com- panies, in whose experience and correctness we fully rely,—presents a condition of assets compared to liabilities which .we feel would warrant us in recommending the stock of WESTERN STATES OIL CORPORATION to all those who may approve the policy in the production of oil and gas that our Companies have heretofore found successful, i. e.. not less than three-fourths of the Corporation’s working capital be employed in proven territory, well drilling, oil production, storage, mar- keting, equipment, transportation and appurtenances. and not over one-fourth in new development or speculative endeavor. Time has demonstrated in both MIDDLE STATES OIL CORPORATION'S and SOUTHERN STATES OIL COR. PORATION'S business that this policy provides stockholders a general market value for their stock above par, and a sub- stantial, regular dividend income; and should prove the same result for the stackholders of WESTERN STATES OIL CORPORATION, even though the percentage employed in new development or speculative undertaking should completely UNITY SECURITIES CORPORATION STOCK PURCHASE PROPOSAL UNITY SECURITIES CORPORATION effers te sell all or any part of appreximately Four hundred thousand (400,000) shares of Common Stock of foregoing Western States 0il Corporation, er such amount as may be purchased under the following provisi . All stock se takem will be in addi to the Four buadred and ten thousand (410,000) shares of said stock mew outstanding. This steck may be purchased from UNITY SECURITIES CORPORATION frem May 1st, te the close of business May 15th, 1923, at UNITY SECURITIES CORPORA- TION’S office, 358 Madison Avenue, New York, in person, or by mail, or through brokers for all purp. representing those desiring to purchase; all applications, however, to be valid only whan accepted at its said office in New York. s All purchases to be at the price of Twelve dollars ($12) per share, payable: One-third te accompany the application, ene-third on June 1st, 1923, and ene-third o» July 1st, 1923, —right being reserved te reject or reduce amy application. PREFERENCE WILL BE GIVEN TO THE SUBSCRIPTIONS FIRST RECEIVED. Applications may be made by cutting out, filling in and signing the blank form adjeining. UNITY SECURITIES CORPORATION, C. ELLIS, Assistant Treasurer, CORPORATION offer; Four dol . payment. To: UNITY SECURITIES CORPORATION, May 350 Madison Avenue, New York City, N. Y. 1 hereby offer to purchase from you ... t Twelve dollars ($12) per share, payable as follows: Four dollars ($4) per share upon acceptance of this s ($4) per s July 1st, 1923. Receipts for partial payments to be given and delivery of certificates to be made to me or my order on final This offer shall be MY ADDRESS 1S J. V. McCLINTIC W. G. WILLIAMS WM. E. ALLAUN R. K. STALEY fail. It ts our opinion, however, that WESTERN STATES OIL CORPORATION'S new development work should pro- duce exceptionally profitable results, but even average results in this new development undertaling should add a large speculative value over and above the steady-going, substantial value that we feel sure the Company’s operations in proven territory will sustain. From these considerations we feel justified in our opinion that all those who become Stockholders in WESTERN STATES OIL CORPORATION at this offering will not only have a stable annual income of Twelve percent (12%), or better, but that their speculative prospects. in addition to the stable income. will be highly satisfactory. WESTERN STATES OIL CORPORATION, C. N. HASKELL, P. D. SAKLATVALA. SCOTT FERRIS, Apnl 28th, 1923. Members of -Executive Committee. APPENDIX “REPUBLIC PRODUCING COMPANY " (A Delaware Corporation) PRINCIPAL OFFICE - - - 350 Madison Avenue, New York LOCAL OPERATING OFFICE - - Los Angeles, California " $5,000,000 Common Stock; | Both Common and Preferred Stock having » AUTHORIZED CAPITAL: | 37:G00°000 Preferred Stock: | par valus of $100 per share: (A) TOTAL ACREAGE.—2,050 ACRES, distributed through the principal Oil Fields of Califor: ncluding SIGNAL HILL and HUNTINGTON BEACH FIELDS inr the LONG BEACH area,—the Midway, Bakersfield, the Caistaic and Newhall Fields. 1,300 ACRES of which are owned in fee, free and clear of all Royalties or other interests. 750 ACRES OF LEASES. 53 PRODUCING WELLS, which evidences the highly proven character of the entire tracts as well as long lived- production. (B) CHARACTER OF FIELDS.—HIGHLY PRODUCTIVE AREAS. The Company has at present eight (8) drill. ing wells, a number of which are offsets to large producers in the Huntington Beach and Signal Hill Fields,— one being an offset to the 30,000 barrel well of the Shell Company of California, which came in in April. Al wells are drilling on proven locations. In the Huntington Beach and Signal Hill Fields. there are two oil producing sands,—the first approximately 350 feet in thickness, and the second sand from 600 feet to 1,100 feet in thickness,—conceded to be the thickest oil producing sands in the history of oil production, which gives assurance of unusually long life to these Fields. {C) GENERAL CHARACTER OF HOLDINGS —Long lived territory: some of wells 15 years old; sand 350 to 1,100 feet thick; gusher territory: experienced oil men prophesy weils will flow for 25 years: properties fully equipped. operated by intelligent, high class men: producing wells in Huntington Beach and Signal Hill Fields located near tidewater, which affords unusual marketing facilities through the Panama Canal to Eastern Coast States: production doubled in the last year; dependable in character Barring accidents and contingencies, Republic Producing Company properties will be producing from fifteen (15) to twenty-five thousand (25,000) barrels of 2il daily within ninety (90) days. REPUBLIC PRODUCING COMPANY, By ADAM H. DAVIDSON. Vice-President. “MILES OIL CORPORATION" (A Delaware Corporation) PRINCIPAL OFFICE - - - 350 Madison Avenue, New York LOCAL OPERATING OFFICE - . - Sheridan. Wyoming “TOTAL ACREAGE.—11,500 ACRES. NAME OF FIELDS.—MAVERICK SPRINGS, WYOMING; WOODY CREEK STRUCTURE on the CROW wg&%RN:ESERVATION in MONTANA; CROWN BUTTE STRUCTURE. CASCADE COUNTY, NUMBER OF PRODUCING WELLS.—FOUR (4) WELLS. AGGREGATE PRODUCTION.—2.200 BARRELS DAILY. THICKNESS OF SAND.—175 FEET THICK. NUMBER OF PROVEN DRILLING LOCATIONS —THIRTY (30). OTHER LARGE COMPANIES IN FIELD.— UNION OIL COMPANY OF CALIFORNIA . . - =« - has 10 wells; CARTER OIL COMPANY (subsidiary of Standard) . - - has 3 wells; OHIO OIL COMPANY (subsidiary of Standard) - - - - - has 2 welis; MIDWEST (subsidiary of Standard) -+ + « + « + < « has 1 well CHARACTER OF PRODUCTION.—Initial production ranging from 500 to 600 barrels per well. Good prospects for deeper sand of high grade oil Gravity of Oil.—24°. Estimated recovery for centrally located 160 acres of Maverick Springs holdings is 3.258,000 barrels of oil Depth of Oil Sands.—From 1,100 feet to 1,600 feet. 3 3 ' Drilling Program.—Five (5) offsets to be drilled this Spring: each offsetting a producing well. which renders pro- ducing wells certain on the Maverick Springs property. MILES OIL CORPORATION, By WM. E. ALLAUN, President. «“PETERS PETROLEUM CORPORATION " (A Delaware Corporation) PRINCIPAL OFFICE - . . 350 Madison Avenue, New York LOCAL OPERATING OFFICE - - - . Tulsa, Oklahoma AUTHORIZED CAPITAL: 150,000 Shares of Preferred, par value $25 per share (Outstanding Shares: 16,000) ; —500,000 Shares of Common, no par value (Outstanding Shares: 402,000). (A) TOTAL ACREAGE.—46400 ACRES,—16,400 acres of which are in highly proven Fields in Osage and Creek Counties, Oklahoma, and in Arkansas: 30,000 of which are in Wyoming and Montana. (B) TOTAL PRODUCTION.—2.040 BARRELS DAILY. i j (C) TOTAL NUMBER OF PRODUCING WELLS.—96 WELLS: wells in excellent condition: each one producing high grade pipe line oil; long lived character assured. 2 P j (D) DRILLING PROGRAM.—12 DRILLING WELLS in Oklahoma and Montana: every one in highly proven terri- tory, giving assurance of increased production, increased earning capacity. permanency of dividends to Stock- B olders. Wi g (E) Puu‘r‘n Earning Capacity.—$90,000 per month, which should be doubled by the drilling yrogram in progress. (F) 90 Quarter Sections in the Osage Nation—with more than 100 drilling locations, that in ‘he estimation of oil men conversant with the subject will be productive of oil in commercial quantities. (G) Value of 90 Quarter Sections, totaling 14,440 acres, as estimated by recent appraisal by W. O. Ligon Company to be - - i - - - - - - - $ 5,500,000 Value of Creek County property, and outlying acreage heretofore referred to. to be - - 5,000,000 Total of - * = 2 * $10,500,000 Creek County properties, Bristow Field, 1,900 acres, 6 wells, high grade oil, numerous highly proven drilling locations. 22 miles of gas line, with gas sales from the producing wells aggregating $2,500 per month. PETERS PETROLEUM CORPORATION, By CHARLES B. PETERS, President. cesssses, 1923 Shares of the Common Capital Stock of WESTERN STATES OIL on ar before June 1st, 1923; and the remaining Four dollars ($4) per share on or before d and binding only when accepted b# you in the State of New York, and when so accepted, shall, as a contract for the purchase of Capital Stock. entered into in the State of New York, and governed by the laws of said State. Street Number _— . NAME All payments must be made in currency, certified check, or express money order, payable in New York, to C. ELLIS, Assistant Treasurer,

Other pages from this issue: