When an oil discovery is reported at Paxton, Oklahoma, Marshal Rex Allen immediately suspects that where there is oil, there is trouble. Rex arrives just as a band of desperadoes stage a bank hold-up and escape with $25,000 which ranchers have invested in prospective oil drillings. Rex discovers that rancher Frank Barlowe is behind the bogus oil venture which is fleecing the local ranchers. Marlowe is killed in the hectic proceedings and his son, Ned Marlowe, unwittingly carries on the oil deal. Marlowe's secret partner in the hoax, Case Lockwood, convinces Ned that Rex killed his father. Oil is actually discovered on the property and Lockwood, with his attempted land-grab scheme, is tripped up by Rex.