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There's oil in them thar' hills and an unscrupulous oil company scout attempts to drive the settlers off their newly valuable land in this typical Red Ryder Western starring "the Peaceable Man" (William Elliott). Oil company representative Walter Garfield (LeRoy Mason) and his equally nefarious associate, Ace Hanlon (Glenn Strange), manage to drive several ranchers away, but obstinate rancher Ben Taylor (Jack Kirk) is killed right in front of his daughter, Ann (Linda Stirling). When Red Ryder (Elliott), Ann's neighbor, becomes too nosy, Garfield sends for an old associate, gambler Johnny Bennett (aka the San Antonio Kid) (Duncan Renaldo), and charges him with killing the pesky rancher. The Kid is saved by Red when his horse bolts and they become friends. Although shocked that the newcomer is a notorious gambler, Red's aunt, the Duchess (Alice Fleming), hires him as a ranch hand and Johnny reveals Garfield's nefarious plan. Working together, Red and Johnny manage to trap Garfield and his henchmen and after a dramatic shootout, Red chases the villains to their hideout. A fight breaks out and a pool of oil is set on fire. Garfield is killed in the subsequent blaze and Hanlon is brought to justice.