Volume 17 , Issue 22

101 Ranch Oil Company, Ponca City (Oklahoma)

In the Tulsa Daily World, 13 November 1912, page 19 of the Oil and Gas edition we found this mention of "101 Oil Company Ponca City, Oklahoma. This was concerning the Ponca City field, located a mile south and a mile west from Ponca City, in Kay county, Oklahoma, where it had its beginning four years before (1908) when E. W. garland of Pittsburg, Pa., made a visit to the 101 Ranch, and secured a lease on that large tract of land.

At that time Mr. Marland had no associates in his Oklahoma venture. he drilled a well to the Bartlesville sand, 2,575 feet, at the 101 Ranch house, nine miles southwest of Ponca City. This well showed a great number of good looking snaps, but was dry in all of them. These sands were at 500, 900, 1300, 1500, 1800, 2100 and 2525.

There was fifty feet of good looking sand from 2525 to 2575, and about 100 feet of sand at 1460 to 1577. This 1500 foot sand was noted at the time as being a very likely looking sand, and afterward proved to be the productive sand of this field, but not before eight dry holes had been drilled by Mr. Marland and his associates.

In May, 1910, Mr. W. H. McFadden of Pittsburg, Pa., became interested in the Ponca City district, and joined Mr. Marland in the development of the 101 Ranch property, and to the intense energy and activity of Mr. McFadden is due, largely the credit of opening up the Ponca City field. Mr. Marland and Mr. McFadden took up their headquarters at Ponca City two years early and had devoted their attention almost exclusively to the developement of that country since that time. Mr. McFadden had managed the field work, and Mr. Marland the lease and contract end of the business for the 101 Ranch Oil Company, until that company had a property of over 150,000 acres of land, and twenty-one producing gas wells, with a total oil production owned by the 101 Ranch Oil Company of 1,200 barrel per day, and with over 150 million feet of gas shut in. These men organized the Kay County Gas Company, which was supplying gas tot he towns of Ponca City, Newark and Tonkawa from the wells of the 101 Ranch Oil Company.

The total production of the Ponca City field for the month of September, 1912, was slightly over sixty thousand barrels. This production was divided among the Devonian Oil Company, Ginsburg & Foreman, McGraw Oil Company, and the Laclede Oil Company; all of them, except the McGraw Oil Company, operating on sub-leases from the 101 Ranch Oil Company.

A mistaken impression had arisen among the oi fraternity that these sub-leases pay to the 101 Ranch Oil Company a royalty on their production. This was not sure as there were no royalties in the Ponca City field in excess of one-eighth.

The Devonian Oil Company, and Ginsburg & Forman made separate contracts with the 101 Tanch Oil Company when they went into the Ponca City field, buying the one-half interest in certain proven quarter sections. One-Quarter section was valued at $30,000 and the half interest in it was sold to one of these companies for $15,000, but instead of requiring this company to pay the $15,000, the 101 Ranch Oil Company stipulated that the said company should hold the $15,000 and put $15,000 of its own with that, and expend the total of $30,000 in the drilling of six wells on that property. In this manner the sub-lease drilled six wells in payment for the half interest and the 101 Ranch Oil Company was obligated to carry itself, and pay its own one-half share of the development after the six wells were completed. The first two wells drilled under this contract were better than 100 barrels natural, each, and the sub-leasing company was able to drill the other four wells on its contract out of production of the first two wells drilled. All of the sub-leasing made by the 101 Ranch Oil Company on proven territory had been similar to this. They first agreed upon the value of the lease, then sold a half interest at one-half of that value, and instead of requiring the sub-lessee to pay the money, had allowed him to expend the money in the development of the property. All the companies that had dealt with the 1010 Ranch Company in Ponca City were very well pleased with this arrangement. It was the easiest and least burdensome way to get into sure production that had ever been divided in the oil business. The credit of this plan was due to Mr. Marland who made these contracts for the 101 Ranch Oil Company, and they were most liberal in their policy with regard to the development of territory that is less certain of production. They were leasing quarter sections and half sections in the Pnca City field within a mile of production without reserving any interest, and without charging any bonus, giving the operator, who was willing to take a chance, a piece of territory free of cost, which, was it not controlled by the 101 Ranch Oil Company and was still in the hands of the farmer, would cost the operator a handsome bonus. There was no field in Oklahoma where the operator could get in as close to production, without cost, as at Ponca City, and this was due to the fact that the 101 Ranch Oil Company held practically all that territory under lease, and was willing to sub-lease to bona fide operators without charge. But this was a field that offered no inducements to the lease shark. Mr. McFadden and Marland meant business, and they would do business with the other fellow who means business, but they had no time to trifle with the lease shark who desired to secure territory to sit on.

The first oil well in the Ponca City field was drilled in June 1911, and was shown as the Willie Cry well. This well came in at about twenty-five barrels, was shot with twenty quarts, and made one hundred and twenty-five barrels for the first four months. It had over 35,000 barrels to its credit in sixteen months. The last eleven months showed the production from this well, total, 11 months, 19,377.46 barrels or an average of 58.08 barrels per day.) This was one of the smallest wells drilled in the Ponca City field.

It was one of the remarkable characteristics of this field that the 1,500 foot sand produces oil of the Pennsylvania grade, 43 to 44 gravity. The sand was white and pebbly, and very much like some of the Pennsylvania sands. A part of the wells drilled during the past year had come in as high as five hundred barrels natural, and one seven hundred barrels natural. A number of wells over six months old were doing over two hundred barrels per day. None of these larger wells had been shot and there would probably be no shooting in that field for another year.

A careful study of the Ponca City field would show several remarkable facts. The average size of producing wells in that field was greater for natural wells than any field in Oklahoma. The number of producing wells, as compared with the number of dry holes, was greater than in any other present field back then; forty-three wells in all having been drilled in this field and thirty-three of them having been producers.
Back then Ponca City was one of the best little towns in Oklahoma before oil was struck there, and during the past year had considerable growth. It was estimated that it had about five thousand population, and it was blessed with one of the best hotels that the oil men had found in Oklahoma back then.

The Santa fe Railroad made Ponca City easy of access, and all the oil men who had visited there were enthusiastic in their admiration of Ponca City and its accommodations. The story of the Ponca City field would not be complete without mention of George L. Miller and J. J. McGraw. It was unusual to see local people get in on the oil game in their own neighborhood, but Mr. Miller and Mr. McGraw were the exceptions to this rule. Mr. Miller was interested with the 101 Ranch Oil Company and Mr. McGraw was the head of the McGraw Oil Company, which held a number of valuable leases, and had a very good production in the Ponca City field.

Kay & Kiowa Oil Company

The Ponca City field had given rise to another very important enterprise; that was the development of school lands throughout the state. The Kay & Kiowa Oil Company, E. W. Marland and others, secured leases on a vast amount of school land with a number of sections in the Ponca City field. They had just drilled their ninth well on one of these school sections, and had a very large gas production. This gas was being piped to Arkansas City, Winfield and Wellington, Kansas, an eight incline being just about completed.

The same company had opened up a very promising shallow sand oil field near Gotebo, Kiowa County, Oklahoma, about one hundred miles southwest of Oklahoma City. Some drilling was done near Gotebo about ten years ago, and a number of very small wells were opened up. AT that time the price of oil was so low, pipe lines and tank cars so few that Gotebo did not appear to be a profitable proposition. When Mr. Marland secured leases on school lands about Gotebo, and commenced drilling there interest was revived, and within the past two months back then a number of very likely looking wells had been drilled. This sand was at 425 feet, and one well good for seventy-five barrels, and another for thirty barrels were the bed up-to-date.

The Kay & Kiowa Oil Company had twenty sections of school land i this field, that was, eighty quarter-sections, and had adopted the policy of giving one of these quarter sections to any one who would go in and drill a well, only reserving the alternate quarter sections. During the past week eleven sub-leases had been made by this company, and eleven new wells started. Gotten should show something in the near future, but at the present writing (in 1912) it looked like the ideal place for the little fellow to get a start. He could get a good quarter without cost, and drill a well for $700. The drilling in this field was very easy; one or two lengths of drive pipe, eight-inch, and open hole to the sand at 425 finishing with a string of six and five-eights after the shot.

The Kay & Kiowas Oil Company was the owner of the west half of Section 36-21-7 east in Pawnee county. This whole section was owned by by E. W. Marland under the big lease of school land granted to him. The first well drilled by the Selby Oil & Gas Company, which opened the new pool south of Cleveland. Several large wells had since been drilled in this vicinity, and it looked as thoughh the west half of 36 would be a valuable lease; as was remarked by one of the old operators in the field the other day. "It begins to look as if school lands are becoming very lucky, and that the lands leased by the state to Marland in Pawnee county would produce a great deal of oil."

The Kay & Kiowa Oil Company (E. W. Marland and others) had drilled nine wells on Section 13-28-1 west, northwest of the Ponca City field, and had nine gas wells with a total of better than thirty million feet per day, rock pressure 370 pounds.

The same company had completed No. 1 on Section 36-28-1 west, and had a two million foot gas well.

The same company was drilling a test on 36-25-2 west, and were running three strings of tools in this district, all their development work being upon school lands leased to E. W. Marland by the state of Oklahoma.

The Kay & Kiowa Oil Company would produce the gas which the Peoples' Fuel Supply Company would pipe to Arkansas City, Winfield and Wellington. The Peoples' Fuel Supply Company was owned by Harry Heasley, Archie Leonard, and J. J. McGraw, and had a ten year contract to buy gas from Oklahoma school lands from the Kay & Kiowa Oil Company,a nd a contract for the same period to furnish gas to the Wierita Natural Gas Company through an eight inch line to Arkansas City, Winfield and Wellington.

The Ponca City field had nearly three thousand barrels production per day, all of which production was sold to independent refineries; the Chanute Refining Company Oklahoma City Refining Company, Miller Brothers, Cudahy and Pierce Fordyce being the principal consumers. Competition between these refineries for Ponca City oil was very keen, and the price paid was 83-cents per barrel. The Prairie Oil & Gas Company had several 35,000 barrel tanks in the field, but owing to their failure to meet the price they only got about 10 per cent of the output of the Ponca City field.

This premium of thirteen cents gave the producers in the Ponca City field a great advantage, as the premium more than paid the cost of operation and handling the oil. The McGraw Oil Company No. 6, on the Alberta Foureyes was holding up at 500 barrels. This well started off three weeks before at 700 barrels natural and had not yet been shot. The 101 Ranch Oil Company was drilling their offset to the Alberta Foureyes, which was their No. 2 on Mary Primeaux, the east one-half of the southeast one-fourth of section 5-25-2.

The 101 Ranch Oil Company's No. 3, Margaret Primeaux, east one-half of the northwest one-quarter of 4-25-2 was a well about fifty barrels natural; and No. 4 on the same farm was drilling at 1,300 and No. 5 was a rig.

The 101 Ranch Oil Company and Ginsburg & Foreman were drilling a test on the west half of the southwest quarter of 5, Katherine Primeaux. This was trying for a northwest extension. The 101 Ranch Oil Company was drilling a test on the Brett farm, being the south half of the northeast quarter of sEction 7-25-2. This test was one mile west of the Mollie Miller lease owned by the 101 Ranch Oil Company and Ginsburg & Foreman and which was probably the best lease in the field.

The McGraw Oil Company was drilling a test in the center of the northeast quarter of 18-25-2. This was a half mile southwest of production.

The 101 Ranch Oil Company had a rig up for No. 2, Willie Cry.

The 101 Ranch Oil Company and Ginsburg & Foreman were drilling No.w 2, Emily Primeaux, the west half of the northeast quarter of 8-25-02.

The 101 Ranch Oil Company and the Devonian Oil Company were drilling No. 2 on Running After Arrow, the west half of the southwest quarter of 9-25-2. No. 1 was still holding up at about three hundred barrels.

The 101 Ranch Oil Company was drilling No. 1, John Daily, and it was still in the big role.

The Carson Oil Company and the Ginsburg & Foreman had a rig up on the 30-25-2. This was three miles southwest from production, and one mile east from the first well drilled by E. W. Marland in this field.

The Carson Oil Company and Gunsberg & Foreman had a rig up for their No. 1, Thicknail, on the northwest quarter of 14-25-2.

With the tests being drilled in Ponca City. east, west, south, southwest and northwest of the fired it looked as if there was a better chance for extension of this field to be found in the next few months than ever before.

The Ponca City Refining Company would soon have its plant in operation. This refinery would have a capacity of two thousand barrels, and Mr. Todd, the manager said he would not manufacture lubricants int he beginning, but that he would ship the distillates to Pittsburg.
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