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By Henry J. Sandri

ACQUISITION JUSTIFICATION There are many reasons why companies consider acquisitions as a means to expand their operations. Some wish to reduce the impact of business cycles on their businesses. Others seek firms within the same industry for expansion and increased market share. Still others diversify in order to avoid takeovers. Whatever the reasons or justification, an evaluation of an acquisition candidate should be systematic and thorough. To many financial managers the concept of a systematic acquisition evaluation indicates the need for a regular set of evaluation criteria. While these are available from numerous sources, one basic parameter frequently overlooked is the application of these criteria to an industry which is different from the acquirer. This becomes particularly important when evaluating firms within the mineral industry. The mineral industry is significantly different from other industries to require different valuing techniques. • This paper will present a number of reasons why an acquisition candidate in the mineral industry should be evaluated differently from other acquisitions, including by other mineral firms. Additionally, this paper will review the most appropriate means of valuing a mineral firm. • Firms considering the acquisition of a mineral firm should understand the nature of the industry before ever making a tender offer. Some of the general considerations include the following: • Level of Capital Intensity: In the mid-1980's the start up cost for a gold mine has been between 20-200 million dollars and 500-1,500 million dollars for a bauxite operation. • Global Nature of Competition: Except for certain industrial minerals, most minerals and metals are traded worldwide and many on national exchanges, such as COMEX. • Start-Up Time: Many mining operations in developed and developing countries have long lead times, 7 to 10 years in some cases, prior to the start-up of production. • Long Term Nature of Investment: For most mineral operations payback usually occurs at least 7 years after production has started. Additionally, many mining operations will continue producing for 80-100 years. • High Level of Risk: The number of factors that a mining firm cannot control such as grade, volume, world supply and demand, plus the long payback periods tend to classify mineral firms at a higher than average risk compared to other investments. • Cyclical Nature: The mineral industry is cyclical in nature, experiencing long troughs and explosive peaks, thus making timing a critical issue. • Labor Intensive: Even with the large capital requirements needed to operate a mine, most mines are labor intensive in proportion to their capital equipment. • Location: Obviously, the nature of this industry requires operators to work in difficult locations, frequently far from civilized localities, in poor weather conditions and without proper supply and distribution infrastructure. One of the most important considerations is an understanding of asset replacement and asset value. Unlike manufacturing concerns, firms in the mineral industry are working toward the elimination, through depletion, of their asset base. Product flexibility is not available to a mining operation. A mineral firm basically has two options as its resource base is depleted: 1) replace the asset with new production, or 2) deplete the asset and close down operation, as in the South African gold mining model referred to later in this paper. An understanding of the

Jan 1, 1985

By T. Leffers, A. Grum-Jensen

The development of texture in copper and brass (15 pct Zn by weight) rolled at room temperature and in copper rolled at -196°C has been followed by determination of pole figures for various degrees of reduction. The concurrent development in microstructure has been investigated by transmission electron microscopy. For low deformations, the texture in brass, and in copper rolled at -196°C, is the same as the texture in copper rolled at room temperature. The difference in texture does not show until 50 pct reduction. At the same reduction at which the difference in texture appears, mechanical twinning starts in brass and low-temperature rolled copper. Nevertheless, Wassermann's twinning theory is found to be incompatible with the present resulls. All fcc metals and alloys develop, by heavy rolling, one or the other of two types of texture, classified for convenience as copper type and brass type, or possibly a '(mixed" texture representing an intermediate stage between the two types. The pure fcc metals, except silver, develop copper-type texture by rolling at room temperature. Silver and many alloys, including brass with more than 10 pct Zn, develop brass-type texture.' By rolling at low temperatures a transition in texture from copper type to brass type has been observed for copper of commercial purity.2'3 It is generally accepted that there is a correlation between the type of texture developed and the stacking fault energy. Metals and alloys having fcc structure develop brass-type texture when rolled at room temperature if the stacking fault energy is low, whereas those with higher stacking fault energies have copper-type texture.2 Thus, the difference in stacking fault energy must cause a difference in deformation mechanism responsible for the difference in texture. Of the numerous theories advanced concerning the nature of this difference in deformation mechanism, four seem to be of current interest. Smallman and Greeen,2 Dillamore and Roberts,4 and Dillamore5 refer to the fact that cross slip more easily takes place in a material with a higher stacking fault energy and suggest that the copper-type texture is developed by deformation with extensive cross slip whereas the brass-type texture is developed by deformation without cross slip. Haessner6 has advanced the theory that the copper-tye texture is developed by a combination of normal {111} slip and slip on other planes, mainly 1100). Thus his theory, like the theory above, proposes an additional deformation mode for the formation of the copper-type texture. Contrary to this, wassermann7 and Ahlborn et al.8 believe that the copper-type texture is obtained by normal slip. In their opinion mechanical twins will change a copper texture into a brass texture. For this reason it is suggested that the brass-type texture is developed when, in addition to normal {111}(110) slip, mechanical twinning is present. None of these theories are, however, supported by direct experimental evidence. In a recent experiment Hu et al.9 have followed the development of rolling texture in copper and brass. The texture of copper and brass was found to be es-

Jan 1, 1969

By George Smith

Introduction THAT an oil-land law is the most needed item in the proposed program of mineral-land legislation follows from the fact that Congress has never enacted a law really applicable to petroleum and natural gas. The action of Congress in 1597 in authorizing entry of oil-lands under the placer law, enacted 27 years before for the mining of gold in surface gravels, was plainly only makeshift legislation. Naturally the provisions of this placer law with its requirement of discovery as a prerequisite to location are nothing less than absurd when applied to petroleum deposits hundreds or thousands of feet beneath the surface. Other reasons which render oil-land legislation an urgent necessity arise first from the large acreage of lands believed to be valuable for their deposits of oil and gas and therefore withdrawn by Executive order from all entry pending the enactment of an appropriate law for their disposition-a withdrawal that has been specially ratified by Congress in the case of one State, Utah-and second from the exceptional importance of this resource to the nation, the large industrial worth of petroleum, and indeed its paramount value to the navy, not being suspected 17 years ago when Congress last legislated upon this subject. Mineral land of this type is also well adapted to serve for purposes of illustration in discussing the general principles that demand recognition in legislative reform. Most of the issues involved in the consideration of oil-land legislation are clean-cut, and essential differences of opinion will be seen to be based upon radical divergence in economic theory rather than upon conflicting views concerning unimportant details. For the last five years or more the geologists of the Federal Survey have discussed this subject and prepared memorandums and reports on .the various bills introduced in Congress. Most of the provisions suggested in the present outline have been under consideration at one time or another during that period, and many of the statements which follow can be said to represent the consensus of opinion among those of us who, both in the field and in the office, have given special attention to the public oil-lands.

Jan 6, 1914

By George Otis Smith

That an oil-land law is the most needed item in the proposed program of mineral-land legislation follows from the fact that Congress has never enacted a law really applicable to petroleum and natural gas. The action of Congress in 1897 in authorizing entry of oil lands under the placer law, enacted 27 years before for the mining of gold in surface gravels, was plainly only makeshift legislation. Naturally the provisions of this placer law with its requirement of discovery as a prerequisite to location are nothing less than absurd when applied to petroleum deposits hundreds or thousands of feet beneath the surface. Other reasons which render oil-land legislation an urgent necessity arise first from the large acreage of lands believed to be valuable for their deposits of oil and gas and therefore withdrawn by Executive order from all entry pending the enactment of . an appropriate law for their disposition—a withdrawal that has been specially ratified by Congress in the case of one State, Utah—and second from the exceptional importance of this resource to the nation, the large industrial worth of petroleum, and indeed its paramount value to the navy, not being suspected 17 years ago when Congress last legislated upon this subject. Mineral land of this type is also well adapted to serve for purposes of illustration in discussing the general principles that demand recognition in legislative reform. Most of the issues involved in the consideration of oil-land legislation are clean-cut, and essential differences of opinion will be seen to be based upon radical divergence in economic theory rather than upon conflicting views concerning unimportant details. For the last five years or more the geologists of the Federal Survey have discussed this subject and prepared memorandums and reports on the various bills introduced in Congress. Most of the provisions suggested in the present outline have been under consideration at one time or another during that period, and many of the statements which follow can be said to represent the consensus of opinion among those of us who, both in the field and in the office, have given special attention to the public oil lands.

Jan 1, 1915

By Colin C. Harris, Nathaniel Arbiter

The flotation operation can be analyzed in terms of three groups of variables. The first, largely independent of control by the operator, embraces the fixed physical and chemical properties of the ore minerals. The second includes all chemical and physical effects imposed on an ore after mining that influence its floatability. These can be either purposefully or accidentally applied. The third embodies the flotation-machine characteristics which realize the potential floatability of selected ore minerals in terms of grade and recovery levels. The machine effectiveness thus depends not only on its own contribution, but on the prior influence of all other variables on floatability. HISTORICAL DEVELOPMENT From the earliest days, flotation mills used many types of machines. Hoover 20 in 1914 mentioned as then important the Potter-Delprat tank for gas generation by acid, the DeBavay cones for skin flotation, the Elmore mixer and separation chamber for vacuum flotation, and his own modification of the Mineral Separation cell for the agitation froth process. Less important at the time were the MacQuisten tube and the Hyde cell. By 19274~ scores of machines had been developed and dozens had found their way into mills. From then on, however, under the scrutiny of competitive tests, many fell into disuse. Taggart in 19454~ classified processes broadly as skin flotation and froth flotation, dividing machines for the latter into the three categories: bubble column, pulp body, and combination.* Under 'bubble column' he listed all pneumatic, cascade, and subaeration cells; and under 'pulp body' those cells in which gas was generated by boiling, chemical action, and pressure reduction, as well as the agitation-froth type. At that writing skin flotation, the cascade machines, and all pulp body and combination machines were said to be extinct, leaving pneumatic and subaeration types dominant (u. S. practice). The process of elimination has continued to the present, with almost all pneumatic cells succumbing to the pressure of competition from subaeration machines. The only new machines to appear in recent years have been double-impeller types f and these have met with only limited acceptance.

Jan 1, 1962

By C. O. Brawner

INTRODUCTION Tailings dams up to about 200 ft. high are proposed to store tailings for a major mining operation on Marinduque Island in the Philippines. The original design of the dam utilized a compacted laterite starter dam followed by hydraulic placement of cycloned sands to form slime retaining dykes along the outer face of the dam. The upstream method of construction was proposed. In view of the failure of numerous tailings dams in Chile during the EL Cobre earthquake (I), an investigation was performed to assess the earthquake stability of the proposed dam. This included a soil investigation on the first cycloned sand dyke, which had been built to a height of 45 ft. Results indicated that the density of the sand was much lower than existing empirical criteria consider to be necessary for resistance to liquefaction. As a result, the dam was redesigned. The downstream method of construction was selected and a yearly construction program was developed to make use of sand available by cycloning. To increase shear strength, improve resistance to liquefaction, and to utilize steeper slopes, compaction of all sand in the dam was specified. A special underdrainage layer and toe drains were incorporated in the design. Details of the decant system and surface erosion alternatives are described. SITE CONDITIONS The mining project is located in the Philippine Islands. At the present annual rate of production, about 4,230,000 cu.m. of tailings will be produced yearly. The volume requirements for tailings storage design for the first 10 years of operation are in the order of 45,000,000 cu.m. The topography near the mine is mountainous with many gullies and canyons carved out by high intensity rainfall and runoff. The bedrock, which is generally shallow and weathered for a considerable depth, is overlain by laterite soils. Vegetation is comprised largely of palms, banana trees, and tropical shrubs and grasses. Precipitation is heavy. The average yearly rainfall over 24 years is 65.2 in. and the maximum recorded 24 hour rainfall is 9.0 in. High intensity rainfall is associated with typhoon storms, which are a seasonal threat inthe Philippines. Fig. 1 shows a summary of monthly precipitation.

Jan 1, 1972

BIRINGUCCIO was born in Siena in 1480, the son of Paolo and Lucrezia di Bartolommeo Biringuccio.* He was baptized on October 20 of that year with the given names Vannoccio Vincenzio Austino Luca. His father appears to have been an architect, for in 1504 he was paid 600 scudi for his work on the walls of the Communal Palace and at the same time he was superintendent of streets for the city. The course of Biringuccio's life followed closely the checkered fortunes of the Petrucci family of Siena. A warm supporter of Pandolfo Petrucci, Biringuccio did not falter in his allegiance to the family and their party during his lifetime. It was probably to the protection and patronage of this lord that he was indebted for the opportunity to travel widely through Italy and into Germany during his early years and so to lay the foundation for the extensive knowledge of the subjects he was to describe in the Pirotechnia. In 1507, as he himself indicates (p. 48), he was 'in Friuli and. Carnia in northern Italy after having traveled in Germany,, and he also visited the, brass, works in Milan. After returning to Siena; he was sent by Pandolfo to direct the iron mines in near-by Boccheggiano. When Pandolfo died in 1512 (in which year Biringuccio's s father also died), Biringuccio continued to support the Petrucci family in the person of Pandolfo's son, Borghese, who succeeded, to the rule. Under his patronage, Biringuccio was appointed to a post in: the Armoury of the Siena Commune in 1513. In ISIS a popular uprising forced Borghese and his followers, including Biringuccio, to flee from Siena. Biringuccio and the goldsmith Francesco Castori, head of the mint, were accused of having debased the coinage alloy with the knowledge and consent of Borghese. When he failed to appear in 1516 to answer these charges-which may well have been invented by the opposing political faction-Biringuccio was declared a rebel and was exiled as a traitor to the Republic. He then traveled about Italy, was in Rome and Naples, and visited Sicily in 1517.

Jan 1, 1942

By Mark O. Halverson

In this paper, some applications of remote terminal computer time-sharing to mining geophysics are discussed. Examples are presented and evaluations are made. The evaluations are based largely upon one and one-half years experience with the General Electric Mark I and Mark II systems. In both systems, a terminal is placed at the user's location. The terminal consists of a teletypewriter and a paper tape system. Input is on paper tape or keyboard. The output is printed on paper and may also be placed on paper tape if desired. Available languages consist of BASIC, FORTRAN and ALGOL. The time-sharing system is considered very useful. In large part this is because the terminal is available for use as the need arises, much like a slide rule or calculator. Useage is varied. Geophysical field data can be put on paper tape and be computer reduced, for the most part by clerical personnel. Time-sharing is excellent for statistical studies. The system is adequate to generate geophysical parameter values derived from simple models of the subsurface and to make comparisons with field data.

Jan 1, 1969

By C. A. Shook, W. H. W. Husband, D. B. Haas

Although previous studies l,2,3 have been made, no correlations for pressure drop have been proposed. This is probably because severe particle breakage occurred and pressure drops changed substantially with time. A quantitative statement of the relationship of pressure drop to the parameters of the system is desirable for lignite since, unlike higher rank coals, lignite slurries are thixotropic. The present investigation was undertaken to quantify the pipeline behavior and required continuous monitoring of pressure drop and size distribution.

Jan 2, 1979

By C. A. Shook, W. H. W. Husband, D. B. Haas

Introduction Although previous studies1,2,3 have been made, no correlations for pressure drop have been proposed. This is probably because severe particle breakage occurred and pressure drops changed substantially with time. A quantitative statement of the relationship of pressure drop to the parameters of the system is desirable for lignite since, unlike higher rank coals, lignite slurries are thixotropic. The present investigation was undertaken to quantify the pipeline behavior and required continuous monitoring of pressure drop and size distribution.

Jan 1, 1980

By W. C. Ashby, C. A. Kolar

Extensive reclamation experience in the midwest dates from the 1930s with trees, from the 1950s with pastures, and from the 1970s with row crops. Superior growth and productivity of mined land over unmined land can be shown for forest and pasture, related to type of rooting medium after mining and kinds of plants gown. Superior reclamation to crops is actively being studied. Recent regulations have greatly altered the potential for superior growth of trees, pastures, and crops.

Jan 1, 1984

By C. S. Matthews, M. Prats, R. I. Jewett, J. D. Baker

By mathematical analysis it was found that injectivity history of a uniform five-spot pattern can be calculated by rather simple formulas. These calculated injectivities were found to agree rather well with injec-tivities measured in a potentiometric analog. With this as a basis, a simple method was finally developed which allows prediction not only of rate of injection but also of rate and kind of production at the production well, for a uniform five-spot. Using this method formulas for the eflective injectivity and production behavior of a waterflooded reservoir having a wide range in permeability can be calculated by considering that the reservoir consists of several layers, each having a uniform but different permeability. Rather good agreement is shown by a comparison of the observed production history of a field in the Illinois basin and that calculated by the methods just described. INTRODUCTION The importance of being able to predict the injection rates for a water flood is well known, for upon injection rate depends the life of the flood, the size of pumping and treating facilities, and the rate of oil recovery. One method of determining rates of injection is through a pilot flood. However, it appears that even if a pilot flood is resorted to, a theoretical method for calculating injection rate will be valuable in extending field results to times after inter- ference and to locations of other five-spots. It is also important to be able to predict the production history of a flood. Such prediction must generally be done by theoretical means, since in general a small pilot flood will not furnish much quantitative information in this regard because of the distortion after oil-bank interference. Methods for predicting the behavior of five-spot water floods have been proposed by Yuster and Cal-houn' and by Hurst.? However, these methods do not consider the effect of the mobility of the different fluids in the reservoir. Other investigators3,4,5,6 have determined the effect of the water-to-oil mobility ratio on the production history by means of different experimental techniques. Most of the published work applies to homogeneous sand bodies, does not provide information for determining the injection requirements of a flood, and seldom considers the rate of build-up of the oil bank as it fills up the partially depleted reservoir.* The present work was undertaken because of the lack of predictive method which takes into account mobility ratio and the rate of buildup of oil bank resulting from the void space in a partially depleted reservoir. As water is injected into the reservoir, which contains oil, water, and gas in macroscopically homogeneous saturation, it forms several banks ahead of the injection well. In each bank or region there is assumed to be only one mobile phase—water in the water bank, oil in the oil bank and gas in the gas region. The saturation in each region and a plan view of the banks are shown in Figs. 1 and 4, respectively. FACTORS AFFECTING INJECTION AND PRODUCTION RATES Results in this report are determined as functions of the three parameters, F, M, and M, , and of a fourth parameter, r,/L** which relates the size of the well to the flood spacing. The parameter F is the displacement factor defined by Hurst in Ref. 2. It determines the rate of build-up of oil bank as it fills up the partially depleted reservoir. When gravity effects are neglected, the four parameters just given are sufficient to describe the waterflood behavior for horizontal and homogeneous reservoirs having incompressible liquids. Definition of InjectIvity The dinlensionless injectivity (or injection rate) used in this report is defined by

By Kendall E. Born

Production of crude oil in Tennessee during 1937 was slightly over 37,000 bbl., an 85 per cent increase over the preceding year and the highest since 1928. Closer cooperation between the operators and the State Division of Geology has resulted in more accurate data than have been possible for the past few years. Such cooperation is most desirable, especially in this state, which has no law requiring the filling of drilling permits, logs, and production figures. The increased production for the year has resulted from discoveries of four small pools in the shallow district of Clay and near-by counties. The most promising of these began production late in 1937 and consequently has had little effect on the 1937 total. These discoveries, along with renewed activities in some of the older areas, have increased the production for Clay and adjoining counties from less than 5000 bbl. during 1936 to over 21,000 bbl. in 1937. The Mississippi lime production in Scott and Morgan Counties declined from 16,335 bbl. in 1936 to 14,644 bbl. during 1937. While the decline curve on this production has been gradual, some of the wells are over 20 years old, and it becomes necessary to look for other favorable structures in this general region if increased production is to be obtained or past production maintained. The only natural gas marketed off the lease in Tennessee during 1937 was in Morgan County, where a small amount was furnished for the town of Sunbright and its immediate vicinity. The gas occurs with the oil in the Boone Camp field and small amounts were put on the line from the near-by Coon Hollow and Seabolt pools. Development There were 59 wells spudded in during 1937, of which 18 were drilling or only temporarily shut down on Dec. 31, 1937. Of the 41 completions, 17 produced oil, 5 were gas wells of undetermined quantity, and 19 were dry or near-dry holes. The flush production on the new wells totaled about 1300 bbl. per day. The more important wildcats are listed in

Jan 1, 1938

By H. W. Camp

Although the situation in the oil industry during the past year has not been conducive to large expenditures for development and research, there is little indication that such expenditures have been curtailed. While few outstanding achievements have been reported, considerable progress has been made in the development of new product,s and the adaptation of petroleum derivatives to new uses. The most important question facing the refiner today is the antiknock quality of his gasoline. This year has seen the widespread adoption of the term "octane number" as a measure for anti-knock values, and in the latter months of the year the public has been made acutely aware of this condition through competitive advertising. Gasoline is no longer priced on volatility and gravity alone, but on octane number as well; and premiums are being paid for material of relatively high octane rating. The situation has grown more and more competitive and has forced refiners continually to raise the octane rating of their regular and competitive grades, and at this writing the same situation exists for premium grades which have possessed relatively high anti-knock properties for some time. Straight-run gasoline produced from paraffin-base or semiparaffin-base crudes has an inherently low anti-knock value, and in order to convert this material to a higher quality it has been found necessary to crack an increasing percentage of the crude oil charge. By completely cracking the heavier portions of the crude and blending back with the straight-run gasoline, it has been possible to produce an average of 63 to 65 octane number gasoline on average Mid-Continent crude. This operation carried to the fullest extent does not suffice, however, and the recent and rapid development of the so-called '(reforming unit," has resulted. The straight-run gasoline fraction is cut into two parts: a light, low boiling point gasoline; and a heavy gasoline or naphtha. The latter containing the low anti-knock portions of the gasoline, is sent through a re-forming unit and subjected either to high temperature or pressure, or both, which materially increases its octane number. On average Mid-Continent the blend of low boiling point straight-run,

Jan 1, 1932

By H. W. Camp

ALTHOUGH the situation in the oil industry during the past year has. not been conducive to large expenditures for development and research, there is little indication that such expenditures have been curtailed. While few outstanding achievements have been reported, considerable progress has been made in the development of new products and the adaptation of petroleum derivatives to new uses. The most important question facing the refiner today is the anti-knock quality of his gasoline. This year has seen the widespread adoption of the term "octane number" as a measure for anti-knock values, and in the latter months of the year the public has been made acutely aware of this condition through competitive advertising. Gaso-line is no longer priced on volatility and gravity alone, but on octane number as well; and premiums are being paid for material of relatively high octane rating. The situation has grown more and more competitive and has forced refiners continually to raise the octane rating of their regular and com-petitive grades, and at this writing the same situation exists for premium grades which have possessed relatively high anti-knock properties for some time. Straight-run gasoline produced from paraffin-base or semiparaffin-base crudes has an inherently low anti-knock value, and in order to convert this material to a higher quality it has been found necessary to crack an increasing percentage of the crude oil charge. By completely cracking the heavier portions of the crude, and blending back with the straight-run gasoline, it has been possible to produce an average of 63 to 65 octane number gasoline' on average Mid-Continent crude. This operation carried to the fullest extent does not suffice, however, and the recent and rapid development of the so-called "re-forming unit," has resulted. The straight-run gasoline fraction is cut into two parts: a light, low boiling point gasoline; and a heavy gasoline or naphtha. The latter containing the low anti-knock portions of the gasoline, is sent through a re-forming unit and subjected either to high temperature ,or pressure, or both, which materially increases its octane number. On average Mid-Continent the blend of low boiling point straight-run,

Jan 1, 1932

By Eliot Blackwelder

For the purposes of this paper, the boundaries of China and Siberia will be taken as they stood about 1907. Except in the Caspian region, it is doubtful if all the oil ever produced in these countries would equal one day's flow of a good Texas well. Considering the vastness of the regions and the variety of strata, it seems strange that these two countries should have made so small a showing in the petroleum industry. No doubt the condition is caused partly by lack of prospecting and of modern methods of development; in larger measure, however, it is evidently because of unfavorable geological conditions over nearly all of east-central and northern Asia. China The known oil occurrences in China are very few. For many years, perhaps a barrel a day has been obtained by primitive methods from wells near the city of Yenchang in the northwestern province of Shensi. A like amount was obtained from wells bored for salt water in the vicinity of Kiating in southwestern Szechwan. The little oil was separated from salt water by allowing it to stand in jars. The salt wells yield also considerable natural gas, which is used to evaporate the salt and also for domestic purposes. There is evidence that wells were bored in this part of China before the third century. It is said that more than 1200 wells have been sunk in that district to depths of 1600 to 2000 ft. (485 to 610 m.) in connection with the salt industry. The scarcity of petroleum in China may be ascribed to three general geologic conditions: First, China contains practically no marine sediments of Mesozoic or Cenozoic age; second, the Paleozoic sediments are not for the most part of the types that generally contribute petroleum; third, the rocks of nearly all ages have been strongly folded, faulted, and more or less intruded by igneous rocks in all parts of China except certain areas in the west and northwest. The mountainous eastern peninsula of Shantung and the similar district of Liaotung in Manchuria to the northeast have the general

Jan 1, 1923

By Theron Wasson

Michigan has had another record year. Its production has been maintained by the development of fields discovered in 1938. Two minor fields were listed as discoveries in 1939. These are in the southwestern part of the state, where the greatest drilling activity took place. During the year 1465 tests were completed, of which 828 were oil wells, 56 gas wells and 581 dry holes. The four southwestern counties—Allegan, Ottawa, Kent and Van Buren—had 1077 tests drilled, while nine other southwestern counties had 70 tests, making a total of 1147 for this part of the state, 78 per cent of all drilled during the year. Michigan's production of 23,400,000 bbl. during 1939, equal to an average daily production of 64,110 bbl., exceeded 1938 by 4,655,000 bbl., thus establishing another annual record, which brought the cumulative amount for the state to a little over 125,000,000 barrels. A map showing location of Michigan oil and gas fields was published in the TRansactions in 1939 (Vol. 132, p. 353). Active Oil Fields.—The Walker field, near Grand Rapids, Kent County, had a rapid development during the year. Traverse limestone production was discovered here in September 1938, and development has been rapid during 1939. At the end of the year 5500 acres have been proved by drilling. The Traverse limestone is found in Walker field at a depth of about 1810 ft. The Temple field, Clare County, was the most active in Central Michigan. Its production is from the Monroe dolomite at a depth of 3890 ft. In this field 2500 acres have been proved by 125 producing wells. Michigan's largest producer for 1939 was drilled in the Temple field, with a rated potential of 8760 bbl. per day. The Wise field, Wise township, Isabella County, discovered in 1938, had a steady and orderly development because the operators agreed on a staggered 20-acre spacing program. So far 760 acres have been proved for production from the Dundee limestone, found at 3650 feet. Active Gas Fields.—The most active areas in which drilling was done during the past year for gas were the Freeman and Lincoln fields in Clare County, the Clayton field of Arenac County, and the Home field of

Jan 1, 1940

By Eliot Blackwelder

For the purposes of this paper, the boundaries of China and Siberia will be taken as they stood about 1907. Except in the Caspian region, it is doubtful if all the oil ever produced in these countries would equal one day's flow of a good Texas well. Considering the vastness of the regions and the variety of strata, it seems strange that these two countries should have made so small a showing in the petroleum industry. No doubt the condition is caused partly by lack of prospecting and of modern methods of development; in larger measure, however, it is evidently because of unfavorable geological conditions over nearly all of east-central and northern Asia. China The known oil occurrences in China are very few. For many years, perhaps a barrel a day has been obtained by primitive methods from wells near the city of Yenchang in the northwestern province of Shensi. A like amount was obtained from wells bored for salt water in the vicinity of Kiating in southwestern Szechwan. The little oil was separated from salt water by allowing it to stand in jars. The salt wells yield also considerable natural gas, which is used to evaporate the salt and also for domestic purposes. There is evidence that wells were bored in this part of China before the third century. It is said that more than 1200 wells have been sunk in that district to depths of 1600 to 2000 ft. (485 to 610 m.) in connection with the salt industry. The scarcity of petroleum in China may be ascribed to three general geologic conditions: First, China contains practically no marine sediments of Mesozoic or Cenozoic age; second, the Paleozoic sediments are not for the most part of the types that generally contribute petroleum; third, the rocks of nearly all ages have been strongly folded, faulted, and more or less intruded by igneous rocks in all parts of China except certain areas in the west and northwest. The mountainous eastern peninsula of Shantung and the similar district of Liaotung in Manchuria to the northeast have the general

Jan 1, 1923

By Theron Wasson

Michigan has had another record year. Its production has been maintained by the development of fields discovered in 1938. Two minor fields were listed as discoveries in 1939. These are in the southwestern part of the state, where the greatest drilling activity took place. During the year 1465 tests were completed, of which 828 were oil wells, 56 gas wells and 581 dry holes. The four southwestern counties—Allegan, Ottawa, Kent and Van Buren—had 1077 tests drilled, while nine other southwestern counties had 70 tests, making a total of 1147 for this part of the state, 78 per cent of all drilled during the year. Michigan's production of 23,400,000 bbl. during 1939, equal to an average daily production of 64,110 bbl., exceeded 1938 by 4,655,000 bbl., thus establishing another annual record, which brought the cumulative amount for the state to a little over 125,000,000 barrels. A map showing location of Michigan oil and gas fields was published in the TRansactions in 1939 (Vol. 132, p. 353). Active Oil Fields.—The Walker field, near Grand Rapids, Kent County, had a rapid development during the year. Traverse limestone production was discovered here in September 1938, and development has been rapid during 1939. At the end of the year 5500 acres have been proved by drilling. The Traverse limestone is found in Walker field at a depth of about 1810 ft. The Temple field, Clare County, was the most active in Central Michigan. Its production is from the Monroe dolomite at a depth of 3890 ft. In this field 2500 acres have been proved by 125 producing wells. Michigan's largest producer for 1939 was drilled in the Temple field, with a rated potential of 8760 bbl. per day. The Wise field, Wise township, Isabella County, discovered in 1938, had a steady and orderly development because the operators agreed on a staggered 20-acre spacing program. So far 760 acres have been proved for production from the Dundee limestone, found at 3650 feet. Active Gas Fields.—The most active areas in which drilling was done during the past year for gas were the Freeman and Lincoln fields in Clare County, the Clayton field of Arenac County, and the Home field of

Jan 1, 1940

By M. L. Haider

Much has been said and written on the shortcomings of the open-flow and restricted potentials of oil wells to determine their relative ability to produce. The oil industry in general is agreed that the open-flow potential in particular is grossly inequitable, wasteful and expensive, but that potential is still used in many pools. This is partly because no thoroughly satisfactory substitute has been found and partly because operators are reluctant to adopt other methods that have been suggested; or, as Hamlet would say, we would rather "bear those ills we have than fly to others we know not of." In a great many pools the use of tubing potentials has been substituted for open-flow potentials, but open-flow potentials through casing are still being used in many pools, particularly. in Oklahoma, although the expense of such potentials has been pointed out many times. In one of the most recent pools in Oklahoma it is the practice to take open-flow potentials through the casing with the tubing out of the hole. The well is usually tubed after it is drilled in for the purpose of washing it in and cleaning the hole. After preliminary tests are run the tubing is pulled under pressure preparatory to taking the potential. After the potential is taken the tubing is rerun, under pressure. In order to accommodate the large capacity of the wells, it is customary to set three separators, six vent lines and large oil-storage tanks. It is conservatively estimated that the equipment not needed for producing the well currently but which is installed solely for the purpose of establishing large potentials costs the operator at least $5000 per well—approximately 35 per cent of the cost of equipping a well for production. Such needless expenditure constitutes an economic waste in addition to the gas that is wasted in taking potentials. Meaning of Productivity Index A method of measuring the relative ability of wells to produce without open flow that shows considerable promise is the Productivity Index. This method was first suggested by T. V. Moore1, and has since been

Jan 1, 1937