The Odessa American from Odessa, Texas • 28

3l 1 7i RTTNDAY. AUGUST Tt THE ODESSA AMERICAN By Gordon Bankston THE OIL PATCH Air I 4 5 1fl life I mlt the bit to drill on "new for which is 'new, relatively speak-j little more than 10 years and (thinking twice before By JIM COX American Staff Writer i them. its use has become widespread mation" all the time, he said. toe. to the industry is "air crui-i THE MAIN advantage to the only in the last five, according in." 1 The Permian.

Basin tike oth This preedom lfrom cuttings otcA AVfani tfta! til lit At air method, Chiles said, is the to Ivan Chiles, operator or con Air arming is essentially uw er "oil patch" areas in the country, has not, been the center of much faster pace with which substitution of compressed air cording air drillers. tinental Air Drilling Mid land. 1' i for Uaulds used to flush out much technical change in the drill bit progresses through the ground. The blast of air AIR DRILLING is used more There are several reasons drill bit cuttings from the bdt-i past 20 years Riven by Chiles and other air nwiiino is hotm Ann with torn of the well hole. often on exploratory wells than on field wells, Chiles be blown down the drillstem and through three outlets in the bit drilling operators for using their cause me mr metnoa provides services and there are also! keeps the fresh cuttings blown, the same basic types of equip- THE PROCESS is considered ment used two decades ago." new In the Permian Basin are HOWEVER, one development because has been in use tot an almost continuous drillstem some substantial reasons forlaway efficiently enough to per-i test.

The cuttings which rush up to the surface along the outside of the- drujstrinx be ana lyzed better and more quickly than the semi-liquids. The alternatives air criu- are the use, where avail- tag a able, (1) formauon gas (2X salt or fresh water (3) emulsion or oil-type mud, and (4) jell base aDGL Another Advantage named hy air driUers is the lack of prob-l lems resulting from hydraulic pressure and flotation which tend to push the bit upward and make difficult to determine the amount of pressure needed from above. HOWEVER, this lack of by idrostatic pressure, which is a IVo bought a 'boon to bit life and pressure ad Justing, can be a determent un der certain conditions. The lack hydrostatifi pressure can of Maytag Automatics, Wringers end Clothes Dryers to bring you Maytag cause "sloughing," or cave in of the well bore in some. forma- Dependability tortha lowest price ever! itions.

Most areas of the Permian 'Say, you didn't happen to see who ran into one of my cows, did you?" Basin are suitable for air drilling, Chiles said, but if much 'formation water is encountered. I the air method has to be scut- itled. Signs Permian Coop. HE ADDED THAT up to 50- 60 barrels of water per hour mmm ss obbssI can be handled by adding soapy "mist to the air pump ed down the hole. The mist brings water up which the air Stock Sale Agreement alone would not pull.

The disadvantages of air drill LOS ANGELES fSoecian ing, while not too numerous, are tal with no changes in key officials. ..1 serious enough to warrant close Occidental Petroleum Corp. of consideration. In the fiscal year ending May Los Angeles has signed an III I 31, Permian purchased and Eastern New Mexico and Oklahoma. It acquired Cactus Petroleum in 1960, a company which was larger than Permian.

ta 5 In 1962, Permian acquired Republic Pipeline Company. This was probably its largest -ac agreement for the acquisition of a growing Midland firm, PAUL SHAFFER, drilling su marketed more than 100 mil is nwMmrt i-7 urminM ai i ii it i i i i i perintendent for A. W. Thomp-j lion barrels of crude oil. It re Permian Corp.

son Drilling Odessa, has had considerable experience The announcement of the pur ported sales for the fiscal year of $282,736,000 with pre a chase was made Friday by Dr, with air drilling, and his com quisition. pany is currently using air at earnings of $7,546,000 and aftertax earnings of $4,207,000. A a Hammer, chairman and president of Occidental, and two rigs. Permian isamarketerof w. R.

Davis, president of Per fA gav-yigatigW DELIVERY AND lj INSTALLATION -y 2-YEAR PARTS WARRANTY I 'Nv 1-YEAR FREE SERVICE He said a fire hazard is creat Occidental is engaged In the exploration and development of several natural resources in crude in 15 mid-continent states mian. ed by air drilling. "The chances The statement said Permian extending from the Rocky cluding oil and gas, sulphur and are good you'll have an explosion if you hit gas while air Mountain area to the Gulf of stockholders will receive three-fourths of a share of Occidental phosphate rock. They also Mexico. drilling," he said.

manufacture and distribute fer stock for each share of Permi It operates to a large extent He said the "dry hole" condl tilizer and agricultural chemi an stock. through its own pipeline. tions and resulting heat in the I H). I PARTS GUARANTEE ''Ijhvr-I i Permian was organized in Permian reported hole contribute to the hazard June, 1955 and began its op cals. Occidental explores and produces from Louisiana and Texas through Oklahoma and California.

The heat also contributes to the eration as a crude oil marketer' faster wear and depreciation of in 1956. T-! i down-hole equipment, he said, Recently Occidental obtained It holds eve subsidiaries 679 shares outstanding and Occidental 8,684,773 shares. The agreement is subject to approval by directors and stockholders of each company and Permian would reportedly operate as a division of Occiden ANOTHER FACTOR addine two oil concessions in Libya and employees around 850. Prior to 1960, Permian op to the expense of air drilling is which are currently being veloped. la higher scale of insurance erated mostly in West Texas, Occidental's sales for the year rates.

This js a result of the explosion danger and more eye ending Dec. 31, 1965, Including its two unconsolidated wholly injuries from cuttings and dust in the air, he said. hi liiiiilllii! I I Opposite effects are noted in owned subsidiaries, were Its earnings after taxes were $14,504,000. the operation of air and liquid drilling on bits and bearings. with the air method, bits last longer, but bearings are susceptible to wear with liquids, bearings seem to have long life, but the bit wears quickly, according to drillers.

fl SJ jL 1 ONLY UUI 2Fimny- jcrrHi -JC 7 v2 J5 g5 SyMneRtrananinianMmbir. 2 ymn an cempteta wuhw. SyMrten SfQ. II J2J2: bitt 9irat nuf. Frw reptlr or xrfwfo dcv prt or cbio if I v3SL4l rmti.

Ftm lmwltaflon of pl lb rporibimy a tifog frtneWwd JSy, I I "Vs. rsfiWiffleterrf 1 i kMO seconds SwirkiwodroWngodionhlintmnovw 'lfp4Vm' load proteeffcn Rusf-proof fid baOhhgttlojggidpromloVive Viw TsplfV looRyindesfiisdiUeptinp Stnmg adustcUe JtveOng legt ''r lr Basin Notes Rig Count Increase The Permian Basin He count THE AIR DRILLING compa nies in the Odessa -Midland area "rent out" the pumps and this week revealed a two-well equipment necessary to convert from liquid to air, and furnish trained crews to direct the pumping. overall Increase and Ector County was among the counties The ngs usually use several contributing to the increase from 177 to 179. air compressors running simultaneously to keep the pressure at 200-300 pounds. tit- CHILES SAID that although the air method has been 3 grow ing business during the past few years, activity has declined A total of 16 rigs were in operation last week an increase of five over the previous week.

Also recording sizeable gains were Pecos County, which also gained five rigs, and Chaves County, N. which gamed v' On the losing' side, Roosevelt WMJ Mil slightly in this year. He blames the slack-off of wildcatting in the area for the decline, since the exploration wells are the most frequent users of air. N. M.

had a smaller Dividend Announced count by 10 wells. Others suffering decreases were Terry Coun-. i AKRON, Ohio (Staff) The ty, and Lea County, N. -S Genuine May tags I board of directors of Aerojet- General Corp. have declared a The rig count is below that of 5 Ways To Pay jquarterly cash dividend of 1244 a year ago, when 182 rigs were START AT counted.

cents per snare on its Common Stock payable Sept. 30, 1966 to holders of records on Sept, 12, TMt Lost Week Week an 1966. Andrew Borden Cochran Cokt Chaves. N.M. (0)95 AIR DRILLING EQUIPMENT-J.

C. Edwards, 3940 Maple, stands beside one of the compressors used in the air drilling technique. The big compressors are part of a new drilling concept which has been introduced in the Permian Basin during the past few years. (Staff Photo) Concho Crane Crockett AUCTI0ND Dawton Ector. II Eddv.

N.M. Per Month A-106 1. Cash 2. Cash in 30 Days 3. 30-60-90 Days 4.

Lay -Away 5. 36-Mo. to Pay FHher Gaines Pioneer Gas Dividend Set Garza Glasscock Hockley Howard g) 21 AMARILLO, (Staff) Tne Kent Lea, HM. Loving Martin Midland All Washers and Dryers in Stock Now for Immediate Delivery board of directors of Pioneer Natural Gas Co. has declared a Pecos quarterly dividend of 17 cents per share on outstanding m- II Roosevelt Reeves rl Runnel I Scurry mon stock, payable Sept.

1, to stockholders of record on Aug. 19. 14 10 it Vt' iiiii I I Schleicher Sterling ir- Stonewoll V. Sutton fclt 4 Terrell feffi Terry 9f: verde miS EM C. I.

Wall" president, said the HELTON OIL COMPANY I i. w. hastings "quitting contracting business; AUGUST 3010:00 AM. 530 STESCO LANE WICHITA FALLS, TEXAS OfMWWORKS 1 Unit Ri U-IS 1 Unit Rif U-34 4 WUmii Mofu) 1 Franks SAl 4500 DERRICKS 2 127' Im C. Him 1 7 Lm C.

Mow 1 Shetmid 1 M' Fmnta ENSINES 1 LM KlukMlK 4 NK Waukishn 5 WAX Wiuknhu 2 JlH 220 Cummin 1 Clirnai VU-280 it PUMPS tmw 0-17S 8Khlh 30 2 6arnr 0nr FXZ Nttiml C-1SO I midtntf, 8000, u.oeo. i4.eot COLLARS 4 PI PC 24.0OC 4irill tin TRUCKS-TRAILERS TRACTOR MM Dttra mMtt 40 crtwtar fctchr 100'f tt nliM Hunt vtrythlnf Sells Mlnimuni ii RMarvrtim For Duerlptiv Brochtr ConUet JUJ consolidated- net income for the first six months of 1966 was 17t $4,177,652, or 58 cents per share on 7,173,028 shares Outstanding on June 30. These earnings compare with $4,364,916 lor the first six months of 1965, or 61 cents; Car-Train Crash Kills Bandmaster HOUSTON (AP) Jack Wil- per share on the same number of shares outstanding on June 30, 1965. WEST TEXAS HEADQUARTERS FOR The second quarter report to banks, 29, bandmaster of Smiley High School in northeast Hous the stockholders will be mailed ton, died Saturday when hit car about August 9. 1 and a Missouri Pacific freight train collided here.

RETIRING C. B. Woodard, 64, 1 1 2, Odessa, has been presented a plaque and retirement pin et a retirement dinner given for him by. MobH Oil Co. Woodard, who has been employed by Mobil 32 years, has worked as a roustabout, lease operator, gangpusher and least pumper for the company.

Zr-aviiJ Wllbanks. a native of Hooka In Man Fatally Stabbed HOUSTON (UPI) William Bowie County, was considered as one of the most promising 7-3539 Tone, 43, was found fatally stabbed outside his cleaning establishment early Saturday. 'young high school bandmasters in the state. -v.