6 Pages 30—31 of work cited in footnote 4.THE MINERAL INDUSTRY OF
WYOMING 
883 
 
 The eight refineries in the State processed 39.5 million barrels of crude
oil: 37,7 million were from Wyoming sources; 1.7 million were from out of
State, mostly Colorado. Of the 100.7 million barrels shipped out of State,
29.5 million went to Indiana, 18.3 million to Montana, 1 1.1 million to Colorado,
and 10.2 million to Illinois. Crude oil prices were raited 5 cents per barrel
on much of the oil in the State; prices on sour crude reached $3.00 per barrel
for 40° to 44.9° API oil. 
 The API and AGA6 estimated that as of January 1, 1968, the crude oil reserves
would be 1.0 billion barrels, a decrease of 29.0 million barrels (2.7 percent).
Additions due to revisions and extensions were 98.1 million barrels; those
from new fields and new pools were 11.6 million. 
 Overall drilling was slightly greater than in 1966. The increase resulted
from more development drilling (5.7 percent higher); exploratory drilling,
however, was down 3.8 percent. 
 Of the 497 development wells, 367 were successful; about 42 percent were
in the Powder River basin, and 20 percent were in the Big Horn basin. Exploratory
drilling, 17 wells below the record high of 1966, remained at a high rate
of activity. The success ratio, 16.6 percent, was much better than the 13.7
percent of the previous year. Campbell County, with 27.4 percent of its exploratory
wells successful, led in wildcat drilling and number of successes. The discovery
of Recluse field, along with that of Bell Creek field in Montana, spurred
exploratory activIty in northeastern Wyoming to the highest level in recent
years; most of the activity was in Campbell County. 
 Nine oil- and gas-lease sales on public domain and two on Indian lands were
held. The nine sales on public lands totaled 2 1,017 acres for which bonuses
of $163,218 were received, an average of $7.77 per acre. The two Indian land
sales, by the Wind River Agency, resulted in the leasing of 6,575 acres for
a total bonus of $57,140, an average of $8.69 per acre. Highest bid was $101.75
per acre for public lands offered in the sale of May 16; highest bid for
Indian lands was $27.44 per acre offered on October 10. 
 The most significant oil discovery was the Recluse field, in northwestern
Campbell County. The discovery well, Apache Corp. No. 1 U.S.-Fagerness, sec
15, T 56 
N, R 74 W, was completed flowing 1,128 barrels of oil per day from the Muddy
sandstone (Cretaceous) from the interval 7,599 to 7,636 feet. By yearend,
the field had production totaling 236,743 barrels. 
 The discovery of Recluse field occurred at about the time the full significance
of the very important Bell Creek field in Montana was realized. Shortly thereafter,
a long (7,500 feet) extension well was drilled at the Kitty field, T 50 N,
R 73 W; the first well blew out and burned for 9 days before being extinguished;
however, the twin well, drilled to relieve the pressure and control the first
well, was successfully completed for a daily gage of 1,640 barrels of oil
from the Muddy sandstone. These three events initiated a surge of exploration
activity in the Wyoming and Montana parts of the northern Powder River basin,
making the area the most active in the entire Rocky Mountain region. 
 Bell Creek Pipeline Co. and The Permian Corp. completed in 1967 a 6-inch
crude-oil pipeline from Bell Creek field to Lightning Flats. Construction
was begun by Western Oil Transportation Co., Inc., a subsidiary of The Permian
Corp., of a 115mile, 10 ¾-inch crude-oil pipeline from Bell Creek
to the Reno field in Wyoming; the line, to be completed in February 1968
at a cost of $3.25 million, would include a branch line to the Kitty field.
Initial designed daily capacity of the line was 20,000 barrels. 
 Early in the year the M—D field, Campbell County, was discovered when
the J. A. McRae and Thomas G. Dorough No. 1 State, sec 36, T 53 N, R 69 W,
was completed, pumping 800 barrels of oil per day from the interval 7,164
to 7,185 feet in the Minnelusa formation (Pennsylvanian). Davis Oil Co. completed
its No. 1 CarsonHamm to discover the C—H field; the well, in sec2,T52
N, R 70W, gaged 625 barrels per day from the Minnelusa formation from the
interval 7,566 to 7,581 feet. 
 In August, Husky Oil Canada, Ltd., announced pians for the purchase of Frontier
Refining Co. The sale was to include the Frontier refinery at Cheyenne; plans
called for Husky to build a 40,000- to 50,000barrels-per-day refinery east
of the existing Frontier refinery.