In an effort to delineate the boundaries of the new field more clearly, Preobrazhensky decided to drill the 20th well in an area near Verkhnechusovskiye Gorodki [Upper Chusovaya River Settlements], where table salt had been produced since the time of the Stroganovs. On October 18, 1928, the crew of drilling expert Prokopy Pozdnyakov began drilling a well on the shore of the Rassoshka River. Core drilling was used for much of the work, with retrieval of rock cores to the surface. At a depth of 509 feet, rocks were drilled that could have contained potassium salt, but no signs of the salt could be found in the well. Preobrazhensky nevertheless insisted work be continued, and on March 30, 1929, a column of cracked rocks was brought to the surface from a depth of 1,076–1,086 feet containing traces of petroleum and escaping gas. On April 16, oil-covered rock was raised from a depth of 1,198–1,217 feet, which was described in a drilling journal as “an exuberant film of oil with gas bubbles.” The heavy oil of the Kama Valley had made its first appearance.
The geologist Slyusarev delivered the first bottle of oil to the Ural Regional Economic Council in Sverdlovsk on April 26, 1929. The regional newspaper Uralsky rabochy [“Ural Worker”] reported the news the next day in an article titled “Oil Found in Urals.” On April 28, the seventh Ural Congress of Soviets opened in Sverdlovsk. As the Party had issued a directive at the Congress “to decisively strengthen the prominence of the Urals and make it one of the most important industrial regions of the USSR” over the next five years, the first batch of oil was seen as a kind of gift to the regional leadership. The Perm delegate’s address was followed by the ceremonial presentation of a bottle of oil and oil-bearing rock samples to the Congress, as well as optimistic assurances that a “second Baku” would soon emerge in the region. The local newspaper Zvezda [“Star”] triumphantly published an article on April 30 stating: “Oil Discovered in Perm Region.”
Drilling work near Verkhnechusovskiye Gorodki intensified following the discovery of oil. At a depth of 1,312 feet, the oil-saturated limestone turned watery, a sign that the lower boundary of the petroleum deposit had been reached. Drilling operations were stopped on May 1, 1929 out of fears that an oil gusher could be produced and there would not be sufficient earthen dikes or containers to collect the oil.
On May 4, 1929, Zvezda wrote: “Another pearl has been added to the countless riches of the Urals—Permian oil. The size of the reserves and what kind of revolution it will create throughout the entire Urals economy will be seen in the near future. The bedding of the oil reservoir is located in the heart of a solid industrial triangle between Perm, Chusovaya and Lysva and is also in close proximity to the industrial mining railroad.”
Moscow soon received word of the oil prospects in the Kama Valley, and the VSNKh Presidium passed a special resolution, “On Oil Exploration in the Urals,” on May 7, 1929. The minutes of that meeting state: “It is hereby noted that, when the Geologic Committee was drilling an exploratory well for potassium salt on the Chusovaya River at a distance of 10 versts [6.6 miles] from the Komarikha railroad station, porous limestone containing oil and gas was found at a depth of 350 to 400 meters [1,148 to 1,312 feet].... The discovery of oil in the Central Urals near a number of metallurgical plants is enormously important. A widespread search for new oil fields in the Urals must be launched.”42
The government’s decision to accelerate the development of the Perm field was proven correct on May 12, 1929, when Preobrazhensky, the head of the geologic expedition, sent a telegram to Sverdlovsk stating that hand bailing of oil from the well had determined it could indeed be used commercially.
On May 14, 1929, the Presidium of the Verkhnechusovskiye Gorodki District Executive Committee passed a special resolution stating: “The discovery of oil in the Urals near our district is of great state importance. All industries in the Urals will undergo a radical change, and the discovery of oil is of significant economic importance for our district as well.” Two days later, on May 16, Zvezda published another article under the huge headline “Such Oil Has Never Been Seen Before in the USSR.” The article, datelined Verkhnechusovskiye Gorodki (May 15), read: “Comrade Ukhtin, head of the technical division of the USSR Geologic Committee, told our correspondent that the Urals oil is different from the Grozny and Baku oil in terms of color and smell. The Urals oil is of higher quality than the Grozny oil and it burns very well. Urals oil will apparently not be suitable for motors without first being refined, but it is so viscous that asphalt can be manufactured from it. Such oil has yet to be seen in either Baku or Grozny.”
Academician Ivan Gubkin praised the reports from Perm and said: “We could be dealing with oil reserves whose significance for industry is difficult to imagine. One thing is for certain—we have oil on the slopes of the Ural Mountains. Moreover, according to preliminary data, it is available in quantities that are of commercial significance.” The opinion of this respected oil scholar played a decisive role in the passage of VSNKh Decree 731 of May 18, 1929, on the creation of an organization within the Main Mining and Fuel Administration [Glavgortop], to be named the Uralneft Special Bureau, which was to manage all work related to exploration for oil and gas fields in the Urals.
News of the discovery of Perm crude spread quickly throughout the country. A telegram sent in May 1929 by the North Caucasus territorial committee of miners to the Urals regional committee stated: “The newly discovered oil region is of paramount importance to the Soviet Union, and as we wish to develop the region quickly, we will assume a leadership role in this area along with Grozneft. We are sending equipment and 49 skilled workers. Please telegraph what is needed most urgently. We will provide all possible assistance.”
A government commission led by Iosif Kosior (1893–1937), deputy chairman of the VSNKh Presidium, arrived in Perm on May 21, 1929. The next day, the delegation traveled to Verkhnechusovskiye Gorodki along with Professor Preobrazhensky aboard the steamship MOPR. A rally was held on the pier as soon as the ship had docked. The tone of the speakers and the mood of the many people who had gathered to meet the ship were best reflected by a giant banner that read “We Shall Wake the Sleeping Resources!” It did not take much time for the commission members to inspect the drill site and listen to Preobrazhensky’s convincing report. The results were obvious—there was every indication to confirm the presence of “big” oil in the Kama Valley. The first test of Well 20 was conducted after the government commission had left in early June, and the flow rate was 44 tons per day. Pravda, the Party’s central newspaper, reported the well was producing oil on June 11, 1929.
The visit of Kosior’s commission and the successful test of the well resulted in the implementation of new organizational measures. On June 12, 1929, the VSNKh issued Decree 827, which informed Party leaders of the statute the VSNKh Presidium had approved on June 6 concerning the Uralneft bureau within Glavgortop. On the same day, the council issued Decree 830, appointing Roman Buchatsky director of the Uralneft bureau, with Ya. Pelevin and P. Yermolayev as his deputies. On August 15, the Upper Chusovaya oil well was put into commercial production and assigned number 101. Approximately 8,800 tons of oil was produced from this first well over its 11 years of operation (until October 1940).