Oil Leases

As MOST of the oil production comes from leased-lands and not fee property, I shall refer to "leases" as covering the producing tracts. To produce oil, leases on land must first be obtained. Well-selected leases are all important. Not many years ago, the location for drilling for oil in wildcat territory was too frequently determined by the nearness, of adequate water and fuel supply, or with a view to cheapness of transportation. To some extent, the "creekology" theory is the result of the number of wildcat tests made near streams, to obtain water for operations. Now, an up-to-date operator will depend on his geologists for his location and, in many cases, will spend thousands of dollars to get water to it. The wisdom of following the geologist rather than the creek has been abundantly demonstrated in the past few years. In vast territories, where dry holes are spotted at intervals of a few miles or less. apart, and by reason of which these territories have been condemned for oil, the geologist is now finding many more spots that are producing large quantities of oil. No better tribute to the work of the geologist can be found than the surface and subsurface work being done in practically all parts of Oklahoma and the development had as a result of this, work. A land department is usually organized by placing in charge a man who is not only acquainted with the oil development, but who is a shrewd buyer, a first requisite for which should be unquestioned integrity. It takes a shrewd buyer to resist the persuasive lease broker, frequently backed by a geological picture from which the oil fairly drips. The geologist can help a lot by being absolutely honest when he makes these pictures; he will also thus strengthen his own cause. A geologist should interpret his own work and put his name behind his interpretation. If he does not he is liable to be misquoted and often discredited, as a result, by some overzealous lease broker giving an interpretation never intended by the geologist.