Petroleum Production – United States - Montana’s Oil Industry for 1928

The lure of possible new oil fields shut off development of the older Montana fields during the year 1928, cutting down the total production to less than the 1927 mark. However, with the production of oil worth approximately $7,000,000 during the past 12 months, Montana oil producers pushed their total up to $44,000,000 taken from two principal fields during the past 8 years. The highest prices in the United States for oil of similar gravity gave northern Montana producers a decided advantage and brought up the value of the oil to about the same value as the 1927 production, although the oil runs were 1,000,000 bbl. less. Production by Fields The discovery of two new oil fields in the Sweetgrass Arch, in north central Montana, in 1927, diverted attention from the Kevin-Sunburst field. Many operators turned their attention to wildcats and practically all of the drilling contractors were called into the new Pondera and Bannatyne fields. Although discovered in 1927, the Pondera field developed its first commercial production in March of 1928. Mild interest was followed four months later by a rush of operators, and by August practically every string of tools had been moved from the Kevin-Sunburst field to Pondera. The fall months found 40 wells drilling in this field and as the year closed there were 100 producers. Pondera field is remarkable in that every well thus far drilled within the structure proper has been a producer. Dry holes have been drilled around the field, but none within an area of four sections. Experts estimate that Pondera will produce 5000 bbl, of oil to the acre. The producing area now outlined by wells drilled is expected to produce around 15,000,000 bbl. of oil. Pondera crude brings $1.75. This field has one pipe line and a second line is being laid. Lack of a pipe line delayed development of the new Bannatyne field, south of Pondera, and also in the Sweetgrass Arch. Bannatyne has 11 producing wells scattered over an area of approximately three sections. Bannatyne is a sand field with a 70-ft. sand in the lower Jurassic, which core-drill tests show to be 60 per cent. saturated. With the completion