Special Correspondence of the Pittsburgh Commercial

Venango City, January 25, 1866

Since my last communication of the 15th inst., we have had some new developments here on West Hickory, which may prove interesting to some of your readers. While cleaning out the Shaw Well, on the White Farm, a few days ago, a crevice of some two feet was struck, when the oil and water immediately commenced overflowing the conductor. It is fully believed that this well will prove one of the largest wells on the creek.

The Foster Well on the same farm, which I reported in my last as producing thirty barrels per day, is now producing thirty-five barrels, and still gaining. The Swamp Angel has been pumping twenty barrels, though for a few days past, owing to a breakage in the machinery, she has been standing idle. Well No. 19, struck a few days since, below the Swamp Angel, is producing twenty barrels lubricating oil.

The old Manross Well, reported in my last as having been worked by waterpower, is now, owing to the application of steam, producing some eighteen barrels per day, and gaining. I understand a new twenty barrel well has been struck just below the Manross Saw Mill. Not having yet visited this well, I give you the report only as I have heard it.

I understand all the leases have been taken on the White Farm, also on the property of the Triangle Oil and Mining Company, that the parties in interest are now willing to dispose of. Amongst those having taken leases on the latter tract are Mr. Joseph A. Neill, of Warren, Pa.; Mr. Nichols, of Cleveland; and Mr. John W. Smith of Salem, Ohio.

By the way, Salem is pretty well represented on West Hickory Creek, as I learn that several of her enterprising citizens are interested in the tract of the Hickory Farm Oil Company, the West Hickory Oil and Mining Company, the Salem Oil and Lumber Company, and the Triangle Oil and Mining Company. The offices of each of the two latter companies being in Salem. This certainly shows some enterprise on the part of her citizens. And, we think, one that will prove highly remunerative, as the prospects now are very flattering. Good wells being the rule, and dry holes the exception, on West Hickory. This city, as well as the one above on the White Farm, also the one at the mouth of the creek, are improving rapidly. Everything indicates enterprise and business.

More Anon.

The Armstrong Republican says: The well at Parker’s Landing still improves rather than otherwise. It flows from twelve to fifteen barrels per day. When pumped the daily product is from twenty to thirty barrels. Two wells are going down there and a great many more will commence in the spring.

At Brady’s Bend, oil has been found but we know nothing as to the depth or quality. The well at Stewartson Furnace is getting along slowly. The well on Buffalo is down over 700 feet with excellent indications of oil. The cold weather interferes greatly with boring operations. Many new wells will in all probability be started in the spring.

The oil fever has attacked the citizens along Six Mile Run — a stream that empties into the Ohio River six miles below Beaver. A company has been organized. A large tract of land has been leased [and] an engine ordered. In two weeks, boring is to be commenced upon the farm of James McGaffic, on the Run, about three miles above its mouth. The company is officered as follows: President, Jesse McGaffic; Secretary, John G. Hunter; Treasurer, John Hineman; Managers, James Russell Jr., William C. Hunter and John Engle.

About three weeks ago, it was announced by the Beaver Local, that an excitement had been created at Island Run, by the appearance there of a party from Pittsburgh, who claimed to have an original and valid lease for the twenty acre lot of land which the Ormes Well had been sunk. A Mr. Thompson and two [black] men, named Ormes, had leased the lot from Harrison Steele, and sunk the well. They sold to Messrs. Pritchard & Bros. of New Lisbon, Ohio, for $120,000. Messrs. Kier & Co., of Pittsburgh, now appeared and produced an original lease from Mr. Steele for the same lot, and brought an action against the other parties. A compromise was affected last Monday — defendants paying Messrs. Kier & Co. $47,500 and receiving from them a release of their interest in the property.

A flowing well was struck on the William Williams Farm, on a branch of Sugar Creek, some eight miles from Franklin, which is flowing 100 barrels per day.

Last week the drillers struck a crevice in Well No. 187 on Morey Farm, within a few feet of the required depth. An hour or two later, No. 187 stopped flowing, and from yielding 125 barrels, she has been reduced to a yield of 40 barrels per day, by pumping.

The Titusville Herald, in noticing the dissolving of the injunction against the Bennehoff Run Petroleum Company, says: “The effect of the injunction was of course damaging to the reputation of the company, and depreciated the stock, which immediately fell from $20 to $14. But with the removal of the injunction, it has rapidly advanced to $21, or more than 100 percent. The dividend previously declared was promptly paid upon the removal of the injunction. The Bennehoff Petroleum Company stands among the best in Venango County. If has now seventeen producing wells and fourteen more going down, the present daily production being between 700 and 800 barrels.

The Pithole Record states that McKinney Oil Company Nos. 1 and 2, the Clinton Petroleum Company, the Fountain Petroleum Company, the Loomis Oil Company, the Berry Oil Company, and the Devon Oil Company — most of which were good dividend companies, and which at the time of organization were thought to have been made up on small capitals, representing excellent properties — have now consolidated themselves into one company under the name of Petroleum Consolidation. [The action] reducing their capital to $700,000, or nearly two-thirds below their united original capital.