The area reported in this paper consists of Texas Railroad Commission District 9 and Grayson and Collin counties of District 5, a total of 16 counties, all but one of which produce oil.

Production has been gradually increasing over the past several years, and last year totaled 54,517,151 barrels. The total number of wells drilled, 3,415, was the greatest of any previous year. Of this number, 1,940 were productive of oil, 15 gas, and 1,460 dry. Of the 673 exploratory holes drilled, 139 were discoveries and 534 dry. The total exploratory footage was 2,429,951. Archer, Clay, Jack and Montague counties lead in the order named. The most important discoveries were the Sandusky Ordovician production in Grayson County, and Canyon reef production in Knox County.

Geophysical activity was on a par with the previous year, but participation by independents appears to be increasing. Of the 54 operators doing this work, only 12 were major companies. The amount of work per independent, however, is usually small and limited to a few crew weeks. Grayson and Baylor counties were the most active.

Leasing activity was greatest in the extreme western and eastern parts of this district. Large blocks featured the western area, while small tracts and high prices characterized the eastern play.

The reflection seismograph, closely coordinated with subsurface geology, is expected to supply the new fields and pools in wilder areas, whereas subsurface geology will furnish the new pools and extensions in closely developed areas.

Exploratory drilling is expected to remain at the present high level as long as the demand for crude is good. Greater average drilling depths may be expected as the older shallow areas become exhausted. Particularly will this be true if drilling techniques continue to improve, the supply of crude shorter, and the price better.