When Imperial Oil Well #1 began gushing vast quantities of crude oil in February, 1947, Alberta officially entered the “oil age,” and soon became Canada’s leading producer. In short order, other important discoveries were made at Redwater, Devon, Valleyview and Swan Hills. In the meantime, the Leduc field was expanded, with other oil companies making significant strikes. One of these was the Atlanta Oil Company, headed by Frank MacMahon. On 16 August 1947, he signed a lease option for NW23 TP50 R26 W4 for $175,000. The owners of this farm were all members of the Rebus family, with the actual title to the land then in dispute. Also in dispute was a claim by Imperial Oil that it in fact already held a lease option for this quarter. MacMahon was able to work a deal with Imperial, while getting the Rebus family members to agree to his option.
On 15 January 1948, drilling proved successful, as oil gushed out of the ground to a height of 150 feet. It was pressured by an estimated 15 million cubic feet per day flow. Such extensive pressure was not easy to control however. On 21 March, efforts to clear a stuck pipe resulted in the fracturing of the surrounding area, and natural gas and oil began to escape over a wide radius. Fearful of a fire, the government put up roadblocks in the district, while the construction workers worked frantically to control the surge of oil and gas. Reportedly, redwood fibre, mud, and even feathers were used to stop the gush, without success. As the oil and gas spread, the entire Leduc field was shut down. On 15 May, operation of the errant well was taken over by the provincial Oil & Gas Conservation Board, which contracted Imperial Oil to try to cap the well and begin cleanup operations. The main activity involved pumping water down a nearby well directed towards the shaft of Atlantic #3. In the meantime, planes were warned away from the area, and there were even rumours that water supply could be affected as far away as Edmonton.
By June, most of the escaping fluid was seen to be oil. On 7 June, this was estimated to be 11,097 barrels daily. That which was gathering in various surface sumps then began to be piped away from the area. By 19 July, production from the well was estimated to have dropped to 7,772 barrels per day. Then, on 6 September, a spark from somewhere ignited a fire, and the greatest oil well disaster in Alberta’s history began. The event caused a sensation heard around the world. As flames licked a hundred feet into the air, smoke billows could be seen for over a hundred miles, while the atmosphere around most of Alberta was darkened. News reporters came from all over North America, and the story was featured on television and on the Movietone News in theatres. Read more →