Shallow Oklahoma oilfield launched many petroleum giants.
When an Oklahoma drilling boom arrived in 1919 thanks to shallow wells in the Healdton oilfield, a 27-year-oid inventor applied his new method for cementing oil wells. His service company would become one of the largest in the world.
Erle Palmer Halliburton (1892-1957) received a U.S. patent for his “Method and Means for Cementing an Oil Well in 1921 during Oklahoma drilling booms in and around the Healdton oilfield. He had arrived in Duncan after working for service companies in North Texas towns, including boom town Burkburnett.
The Healdton Oil Museum includes IPAA founder Wirt Franklin’s Pierce-Arrow. The museum hosts annual oil history events.
Halliburton’s New Method Oil Well Cementing Company would receive many patents on its way to becoming Halliburton Corporation, which in 2022 employed 42,000 worldwide specializing in “locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field.”
The Healdton field was first revealed in August 1913 by the Wirt Franklin No. 1 well about 20 miles northwest of Ardmore. The wildcat well discovered what soon became known as the “poor man’s field,” because of its shallow depth and low cost of drilling.
The Carter County oilfield, about 70 miles east of Burkburnett, quickly attracted independent producers with limited financial backing — often edging out major oil company competitors.
“Within a 22-mile swath across Carter County, one of the nation’s greatest oil discoveries was made — the Greater Healdton-Hewitt Field,” reported Kenny Arthur Franks in his 1989 history of the oilfield.
“Encompassing some of the richest oil-producing land in America, Healdton and Hewitt, discovered in 1913 and 1919 respectively, produced an astounding 320,753,000 barrels of crude by the close of the first half of the 20th century,” Franks explained.
Erle P. Halliburton Halliburton in 1957. Photo courtesy Oklahoma Hall of Fame.
In addition to launching Halliburton’s petroleum career, the shallow field also helped independent producer Wirt Franklin in 1929 become the first president of the then Tulsa-based Independent Petroleum Association of America (IPAA).
The Healdton Oil Museum preserves Franklin’s and other independent producers’ exploration heritage — and many who got their start in the Healdton field. Among them were former Oklahoma Governor Charles Haskell and Roy Johnson, president of the Healdton Petroleum Company.
According to the Oklahoma Historical Society (OHS), the towns of Wilson, Ringling, and New Healdton (now Healdton) came into existence during the oilfield’s development. Just a few who began their careers there were Robert Hefner Sr. and Lloyd Noble.
“Hefner, a lawyer, introduced the concept of subsurface leasing into mineral rights law,” OHS notes. “Noble developed an international oil business and established the Samuel Roberts Noble Foundation, a nonprofit biotechnology research foundation that helps farmers.”
Born in Ardmore in 1896, Noble found early success at Healdton — and at the Seminole oil boom in 1926.
Noble also was instrumental in the success of a top-secret drilling project during World War II (see Roughnecks of Sherwood Forest).
Cement Well Control
Healdton drilling boom and its many shallow wells, Halliburton established his New Method Oil Well Cementing in Duncan. He was soon experimenting with technologies to improve oil well production. Water intrusion hampered many wells, requiring time and expense for pumping out.
Halliburton noted in his 1920 patent application, “Water has caused the abandonment of many wells which would have developed a profitable output.”
The oilfield cementing innovation — at first resisted by some skeptics — isolated the various down-hole zones, guarded against collapse of the casing and permitted control of the well throughout its producing life.
The city of Duncan, Oklahoma, dedicated a Halliburton statue in 1993.
According to William Pike, former editor-in-chief of E&P magazine, Halliburton’s well cementing process revolutionized how oil and natural gas wells were completed.
Halliburton also patented other modern cementing technologies, including the jet mixer, the remixer and the float collar, guide shoe and plug system, bulk cementing, multiple-stage cementing, advanced pump technology and offshore cementing technology.
Halliburton’s only real service company competitor for decades was Carl Bakerof Baker Oil Tools. Halliburton Oil Well Cementing Company in 1938 expanded into offshore work with a barge-mounted unit cementing a well off the Louisiana coast.
Meanwhile, another Oklahoma oilfield service company, the Reda Pump Company, had been founded by Armais Arutunoff, thanks to help from his close friend Frank Phllips and Phillips Petroleum of Bartlesville, Oklahoma.
Arutunoff invented a practical electric submersible pump). As Phillips foresaw, use of the Arutunoff artificial lift pump would dominate U.S. oilfields by 1938 — and oilfields worldwide after World War II.
Hydraulic Fracking
A major petroleum industry milestone came in 1949, when Halliburton and Stanolind Oil Company completed a well near Duncan, Oklahoma – the first commercial application of hydraulic fracturing (see Shooters – A “Fracking” History).
“Halliburton was ever the tinkerer. He owned nearly 50 patents,” noted Pike. “Most are oilfield, and specifically cementing related, but the number includes patents for an airplane control, an opposed piston pump, a respirator, an airplane tire and a metallic suitcase.”
Thanks in part to his prospering oilfield service company, Halliburton in 1931 started his own airline in Tulsa, the Southwest Air Fast Express — Safeway Airlines — that later merged with American Airlines.
As U.S. production from oil and natural gas shale formations grew in 2018, Halliburton Corporation’s worldwide operations employed 80,000 people.
Citation Information – Article Title: “Halliburton and the Healdton Oilfield.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/halliburton-and-healdton-oilfield. Last Updated: June 3, 2024. Original Published Date: July 14, 2015.
African American entrepreneurs began their Oklahoma oil venture in 1917.
Discovery of Oklahoma’s giant Healdton oilfield in August 1913 about 20 miles northwest of Ardmore launched years of investment as petroleum companies competed to secure leases and drill. In the African American community, four entrepreneurs formed the Ardmore Lubricating Oil Company.
Oklahoma’s Daily Ardmoreite reported on August 15, 1918, that Ardmore Lubricating Oil Company moved a Star Rig to explore for oil on land adjacent to the town of Tatums. Image from online auction sale.
Today, East 2nd Street is the heart of the “Deep Deuce” district and is known for its historic jazz and culture. But in 1917, that part of downtown was exclusively for “coloreds,” segregated to the other side of the Santa Fe railroad tracks. It was the era of Gov. William “Alfalfa Bill” Murray’s Jim Crow laws (the Civil Rights Act was still half a century away), but along East 2nd Street African-American businesses and neighborhoods prospered.
Ardmore Lubricating Oil Company moved into offices at 319 and 321 East 2nd Street, across from the Black Dispatch weekly, established two years earlier by Roscoe Dunjee. Advertised as the “Largest circulation Negro journal in Oklahoma,” the paper soon carried Ardmore Lubricating Oil Company promotions encouraging readers to invest.
“Buy Stock in a Home Company – With Men Whom You Know at its Head…100 acres leased and shallow wells producing the high-grade of oil,” declared one ad. The company announced plans “to deepen our 1,360 foot well to the lower pay.” Early investors could get in for the bargain price of $1 a share.
As Ardmore Lubricating Oil operations continued into June 1919, news reports for stockholders were mixed. The company completed a producing well on its 100-acre lease that yielded one barrel of oil a day of “high grade lubrication oil.” The company’s chemist predicted it would be worth $10 a barrel at a time when ordinary oil was selling for $2 dollars per barrel.
In 1920, Ardmore Lubricating Oil began moving equipment to drill a well just outside Tatums, about 80 miles south of Oklahoma City. The company announced it would build its own refinery there to process its especially valuable oil from the Healdton field. Tatums was one of about 50 all-black towns in the former Indian Territory that grew from post Civil War reconstruction. These self-segregated communities were reflective of the times; they remain as reminders of America’s struggle with race and identity.
With a new lab opened in 1920 upstairs at its Oklahoma City offices, the company’s wells reportedly could produce “high grade lubrication oil” and “Icthyol Oil,” a salve for eczema and other skin conditions. Image from online auction sale.
The superintendent, manager and stock salesman of the Ardmore Lubricating Oil, H.E. Baker, published a telegraphed message about the Tatums well site: “We have three wells producing the highest grade and most valuable oil found in the United States, the great drug Icthyol Oil, one of the most sought for and needed products of the world today.”
“Icthyol” was a popular European skin ointment produced from dry distillation of sulfur-rich oil shale, but Ardmore Lubricating Oil Company executives declared they could refine it from Tatums’ crude oil and process it in their own laboratory. In February 1920, the company announced a four-day grand opening to celebrate their new lab upstairs.
“The general public is cordially invited to come and see Kerosene, Automobile Oil and Icthyol,” noted an Ardmore Lubricating Oil promotion. Other ads proposed mutually beneficial business arrangements with merchants, investors, farmers, and consumers.
Increasingly creative financing and uninterrupted stock sales were needed for Ardmore Lubricating Oil to remain solvent. The Black Dispatch in 1921 praised H.E. Baker, noting his company’s “development grows by leaps and bounds…You can get into this company now on the ground floor, $10 is all that you can invest at this time for each member of the family, this will insure at the outset an equal opportunity for all, later on the hundreds of stock holders can get together and determine as to the larger plan of organization.”
Tatums’ townspeople in 1927 hosted and acted in “Black Gold,” a silent picture produced by Norman Studios and featuring an “All Colored Cast.” Posters courtesy IMDB.com and Norman Studios.org.
However, construction of the Ardmore Lubricating Oil refinery in Tatums still had not begun by August 1921. News about the company’s oil wells grew scarce as Baker sold his own leases. The last appeals for new investors appearing in the Black Dispatch were nevertheless optimistic:
“Wonderful Opportunities In Larger Faith And Deeper Hole,” proclaimed the newspaper. “To anyone with a limited amount of brains it can be seen that a little more faith and a deeper hole will bring into the hands of the Negro landholders in this section the millions of dollars, which their white neighbors all around them are reaping hourly from the derricks that have lunched great holes in the earth and are spouting liquid treasure everywhere.”
A few years later, but too late for Ardmore Lubricating Oil, the area around Tatums did experience an oil boom that was celebrated on the big screen. In 1927, townspeople hosted the making of Black Gold, a silent picture produced by Norman Studios and distributed to all-black theaters the next year. The Florida-based studio described its movie as a “stirring epic of the oil fields” with a cast including, “U.S. Marshall L.B. Tatums. and the entire all-colored City of Tatums, Oklahoma.”
The action-packed melodrama featured Ace Brand, his sweetheart Alice, and a one-legged cowboy (named Peg), who overcame both adversity and injustice in the oil patch. While the film’s happy ending delivered an oil gusher, Ardmore Lubricating Oil Company did not.
Few financial records remain about the company, but Gateway to Oklahoma History and the Black Dispatch’s archives offer more context to this almost forgotten story from U.S. petroleum history.
Citation Information – Article Title: “Ardmore Lubricating Oil Company.” Author: Aoghs.org Editors. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/stocks/ardmore-lubricating-oil-company. Last Updated: February 21, 2024. Original Published Date: July 4, 2019.
Ardmore Lubricating Oil Company opened offices in this building on East 2nd Street in a segregated district of downtown Oklahoma City known for its prospering businesses and jazz music nightlife. Photo courtesy The Black Dispatch, Oklahoma City, April 20, 1922, Vol. 7, No. 20.
Decades of production from the Healdton oilfield would yield more than 200 million barrels of oil — but the prolific field left hundreds of forgotten petroleum companies hidden in its exploration and production history.
Oil production from the Healdton field was shallow, averaging about 1,000 feet, and the low cost of drilling attracted many small ventures that operated on capital raised by aggressive stock sales. State “Blue Sky” laws had yet to restrain advertising excesses and promotions. Competition for investors often was fierce (see Homestead Oil Company).
Ardmore Lubricating Oil Company
When a group of foundering Coffeyville, Oklahoma, investors gave up on their 100-acre oil lease in 1917, four African American entrepreneurs bought out the venture and its unfinished 1,360-foot-deep well, which had encountered “several light sands” and a water-filled borehole.
Wilson Newman, J.C. Pratt, S.M. Holland, and Heston Welborn formed the Ardmore Lubricating Oil Company, capitalized at $50,000, and set up offices on East 2nd Street in Oklahoma City.
Oklahoma’s Daily Ardmoreite reported on August 15, 1918, that Ardmore Lubricating Oil Company moved a Star Rig to explore for oil on land adjacent to the town of Tatums. Image from online auction sale.
Today, East 2nd Street is the heart of the “Deep Deuce” district and is known for its historic jazz and culture. But in 1917, that part of downtown was exclusively for “coloreds,” segregated to the other side of the Santa Fe railroad tracks. It was the era of Gov. William “Alfalfa Bill” Murray’s Jim Crow laws (the Civil Rights Act was still half a century away), but along East 2nd Street African-American businesses and neighborhoods prospered.
Ardmore Lubricating Oil Company moved into offices at 319 and 321 East 2nd Street, across from the Black Dispatch weekly, established two years earlier by Roscoe Dunjee. Advertised as the “Largest circulation Negro journal in Oklahoma,” the paper soon carried Ardmore Lubricating Oil Company promotions encouraging readers to invest.
“Buy Stock in a Home Company – With Men Whom You Know at its Head…100 acres leased and shallow wells producing the high-grade of oil,” declared one ad. The company announced plans “to deepen our 1,360 foot well to the lower pay.” Early investors could get in for the bargain price of $1 a share.
As Ardmore Lubricating Oil operations continued into June 1919, news reports for stockholders were mixed. The company completed a producing well on its 100-acre lease that yielded one barrel of oil a day of “high grade lubrication oil.” The company’s chemist predicted it would be worth $10 a barrel at a time when ordinary oil was selling for $2 dollars per barrel.
In 1920, Ardmore Lubricating Oil began moving equipment to drill a well just outside Tatums, about 80 miles south of Oklahoma City. The company announced it would build its own refinery there to process its especially valuable oil from the Healdton field. Tatums was one of about 50 all-black towns in the former Indian Territory that grew from post Civil War reconstruction. These self-segregated communities were reflective of the times; they remain as reminders of America’s struggle with race and identity.
With a new lab opened in 1920 upstairs at its Oklahoma City offices, the company’s wells reportedly could produce “high grade lubrication oil” and “Icthyol Oil,” a salve for eczema and other skin conditions. Image from online auction sale.
The superintendent, manager and stock salesman of the Ardmore Lubricating Oil, H.E. Baker, published a telegraphed message about the Tatums well site: “We have three wells producing the highest grade and most valuable oil found in the United States, the great drug Icthyol Oil, one of the most sought for and needed products of the world today.”
“Icthyol” was a popular European skin ointment produced from dry distillation of sulfur-rich oil shale, but Ardmore Lubricating Oil Company executives declared they could refine it from Tatums’ crude oil and process it in their own laboratory. In February 1920, the company announced a four-day grand opening to celebrate their new lab upstairs.
“The general public is cordially invited to come and see Kerosene, Automobile Oil and Icthyol,” noted an Ardmore Lubricating Oil promotion. Other ads proposed mutually beneficial business arrangements with merchants, investors, farmers, and consumers.
Increasingly creative financing and uninterrupted stock sales were needed for Ardmore Lubricating Oil to remain solvent. The Black Dispatch in 1921 praised H.E. Baker, noting his company’s “development grows by leaps and bounds…You can get into this company now on the ground floor, $10 is all that you can invest at this time for each member of the family, this will insure at the outset an equal opportunity for all, later on the hundreds of stock holders can get together and determine as to the larger plan of organization.”
Tatums’ townspeople in 1927 hosted and acted in “Black Gold,” a silent picture produced by Norman Studios and featuring an “All Colored Cast.” Posters courtesy IMDB.com and Norman Studios.org.
However, construction of the Ardmore Lubricating Oil refinery in Tatums still had not begun by August 1921. News about the company’s oil wells grew scarce as Baker sold his own leases. The last appeals for new investors appearing in the Black Dispatch were nevertheless optimistic:
“Wonderful Opportunities In Larger Faith And Deeper Hole,” proclaimed the newspaper. “To anyone with a limited amount of brains it can be seen that a little more faith and a deeper hole will bring into the hands of the Negro landholders in this section the millions of dollars, which their white neighbors all around them are reaping hourly from the derricks that have lunched great holes in the earth and are spouting liquid treasure everywhere.”
A few years later, but too late for Ardmore Lubricating Oil, the area around Tatums did experience an oil boom that was celebrated on the big screen. In 1927, townspeople hosted the making of Black Gold, a silent picture produced by Norman Studios and distributed to all-black theaters the next year. The Florida-based studio described its movie as a “stirring epic of the oil fields” with a cast including, “U.S. Marshall L.B. Tatums. and the entire all-colored City of Tatums, Oklahoma.”
The action-packed melodrama featured Ace Brand, his sweetheart Alice, and a one-legged cowboy (named Peg), who overcame both adversity and injustice in the oil patch. While the film’s happy ending delivered an oil gusher, Ardmore Lubricating Oil Company did not.
Few financial records remain about the company, but Gateway to Oklahoma History and the Black Dispatch’s archives offer more context to this almost forgotten story from U.S. petroleum history.
Citation Information – Article Title: “Ardmore Lubricating Oil Company.” Author: Aoghs.org Editors. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/stocks/ardmore-lubricating-oil-company. Last Updated: February 21, 2024. Original Published Date: July 4, 2019.
Boom and bust of an obscure mid-continent petroleum company began in 1917.
The International Petroleum Register noted formation of Oklahoma-Texas Producing & Refining Company as a Delaware corporation in 1917. With capitalization of $5 million in common stock authorized and more than $734,000 issued, the company obtained leases in Muskogee, Tulsa, Rogers, and Okmulgee counties in Oklahoma, and in Allen County, Kansas.
Major north Texas oilfield discoveries in Electra (1911) and Ranger (1917) attracted petroleum companies to the mid-continent. As oil demand soared during World War I, hundreds of new exploration and productions companies formed — and sought investors. Most of these companies would not survive.
By 1919, Oklahoma-Texas Producing & Refining’s lease ownership had expanded to 10,313 acres with an additional 815 acres from its acquisition of Tulsa Union Oil Company. About this time, all of the company’s petroleum production was sold to Prairie Oil and Gas Company.
Oklahoma-Texas Producing & Refining meanwhile continued drilling for oil in Coffee County, Kansas, and elsewhere, and the company’s estimated production reached 10,000 barrels of oil each month — a promising development for investors. The financial magazine United States Investor added a positive endorsement in May 1920 after Oklahoma-Texas Producing & Refining reported production of 27,000 barrels of oil worth $65,000.
“It appears that this company is further along the road to development that a great many of the new oil companies, though whether its shares at the present offering price of $2.50 on the basis of a $1 par represent an extravagant price, cannot be told until further developments have occurred,” United States Investor reported.
However, six months later, the company’s shares were selling for less than 14 cents. Records of what went wrong are obscure. There are references to a convoluted business venture with another oil company. The deal was orchestrated by New York financier Mrs. Ada M. Barr after Oklahoma-Texas Producing & Refining had failed in January 1921.The next month, after being put in the hands of a receiver, the company’s assets were sold for $87,400.
The buyer was Mrs. Barr, who soon would be enveloped in controversy and litigation of her own.
Acorn Petroleum Corporation, represented by Mrs. Barr, offered bonds in the amount of $150,000 of Acorn Petroleum Corporation on the basis of $250 in bonds for each $1,000 of Oklahoma-Texas Producing & Refining stock held.
“The new company is operating the properties and has twenty-three producing wells, giving about ninety barrels of oil a day. The present low price for oil does not enable the company to earn sufficient income to pay interest on its bonds,” United States Investor noted. “Mrs. A.M. Barr, who arranged the financing of the new company, says that as soon as oil advances to a price that will permit, accrued interest on the bonds and dividends on the stock will be paid.”
But they weren’t.
By March 1923, investor Lewis H. Corbit filed a petition on behalf of a large number of local purchasers of stocks in the Acorn Petroleum Corporation of Tulsa, Oklahoma. The petition in the United States District court sought to determine the value of the local holdings, which represent an investment of approximately $100,000.
According to records, “In his complaint, asking for an investigation, Corbit alleges a stock, fraud in which $ 500,000 is involved. Certificates of shares held here were sold by a Mrs. A. M. Barr, it is disclosed in the petition.”
Further financial records and other details about Oklahoma-Texas Producing & Refining Company, Acorn Petroleum Corporation, and Mrs. Ada M. Barr can be research through the Library of Congress’ online Chronicling America: Historic American Newspapers.
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The stories of exploration and production (E&P) companies joining U.S. petroleum booms (and avoiding busts) can be found updated in Is my Old Oil Stock worth Anything?
Old Colony Oil Company began about the time the “Roaring Ranger” in Texas made national headlines in 1917 (see Oil Boom Brings First Hilton Hotel). The new company explored near Duncan, Oklahoma.
Despite production from its first two wells – a 20,000,000-cubic-foot-a-day “gasser” and a well producing 2,000 barrels oil oil a day from the Duncan field – Old Colony Oil Company failed to survive.
The company’s success in the Mid-Continent oilfield helped attract investors for funding additional lease purchases and exploratory drilling. The Mid-Continent’s potential had been revealed as early as 1892 (see First Kansas Oil Discovery). Old Colony Oil soon had operations in Texas, Oklahoma, Utah and Montana – but leasing and drilling costs coupled with a lack of consistent producers brought debt.
However, by 1922 the company’s fortunes had diminished to such a point it could only extract about 125 barrels a day from its nine remaining shallow wells in the diminishing Duncan oilfield.
With oil prices down, by May 1922 Old Colony Oil assets amounted to just $75,000 and the company was defaulting on $10,000 monthly payments due to the Wilkin-Hale Bank. Then the bank begin to fail (Wilkin and Hale of the Wilkin-Hale Bank were directors of the Old Colony Oil).
In the summer of 1922, Okahoma bank examiners investigated the interlocking directorates’ books. Hoping for the big oil strike to balance the ledgers, Wilkin-Hale Bank had used $200,000 worth of essentially worthless Old Colony Oil bonds in a transaction with the Consumers Bank of El Reno – and thereby sunk Wilkin-Hale, El Reno, and Old Colony Oil.
Obsolete Old Colony Oil stock certificates from the 1920s may have collectible value on eBay and “scripophily” websites. Such certificates sometimes are valued as artifacts from investors’ gambles on business ventures that failed.
Dry holes, market behavior, drilling costs, and a host of unpredictable hazards remain part of the high-risk, high-reward U.S. oil patch.
In 1947 experts from Halliburton and Stanolind companies applied a technology on a Duncan oilfield well – the the first commercial application of hydraulic fracturing. Learn more inShooters – A “Fracking” History.
The stories of other exploration attempts to join petroleum exploration booms (and avoid busts) can be found in an updated series of research at Is my Old Oil Stock worth Anything?
