Business: Big Gamble's First Return

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A hundred miles west, hotshot Sunday evening gamblers were eagerly rolling dice at Atlantic City's new casinos. Although none of them knew it, at that same moment Texaco oilmen at sea on a drilling rig, which was moored in 432 ft. of water near the edge of the U.S. continental shelf, were playing for much higher stakes. Aboard the Ocean Victory, they nervously awaited the results of a test detonation 14,000 ft. below the ocean floor that could tell the outcome of their $30 million search for oil and natural gas.

There was no gusher. Instead, pressure gauges simply showed that something—oil or gas—was trying to come up. Hours later, a mixture of mud, water and natural gas vented from the wellhead in a cloud that when ignited whooshed into a 30-ft. flare visible 20 miles away. A second test at 13,000 ft. yielded indications of oil.

These first-ever East Coast finds cannot yet be classified as true strikes by Texaco and its five partners. More wells will have to be drilled to see if there is enough oil or gas to justify installing a permanent production platform.

But Texaco's news is encouraging to the 39 companies that have spent more than $1 billion on lease purchases in the area. Since drilling began last March, Shell and Continental have reported dry holes. Now at last, all the deep water gamblers can afford to be more optimistic that their wagers will eventually pay off.