First Oil Gush in Iran

William Knox D'Arcy won concession from Muzaffar ad-Din Shah Qajar for oil extraction in Iran in 1901. The drilling of the first oil well started in Chia Sorkh (literally meaning red well) area northwest of Qasr-e Shirin. Oil was discovered in this area, but it was not commercial due to its low volume. Furthermore, distance from sea made transportation difficult. The explorers left the area and moved to Khuzestan.

In the first half of 1908, the Oil Company's capital was nearing its end while no oil had been discovered in Khuzestan. The company's managers ordered chief engineer George Reynolds to stop the work. But relying on data he had gleaned on spot, he gave an upbeat assessment of the situation and he pushed ahead with drilling in defiance of the order.

In the end, it was May 26, 1908 when oil gushed out from Well No. 1 in Masjid Soleyman as the drilling bit perforated a layer. The well was 360 meters deep. The second well which started producing oil ten days later was 307 meters deep. The start of production from these two wells proved the high amount of oil Iran held.