The increased drilling activity which began early in 1950 continued through 1952, with a total of 3,284 wells in all categories. The number of exploratory tests increased by 14 per cent but the number of development tests increased by less than 3 per cent. New fields found increased 25 per cent over 1951 but at least 10 per cent of the new discoveries will probably not develop beyond the status of one-well or two-well fields. None of the new fields may now be classified as a major discovery but additional drilling might change this appraisal. The highest discovery rate and the fields that give promise of the largest reserves, are in the lower Oligocene trend. Extensions to old fields and exploitation of thin sands within previously drilled boundaries of the fields have be n a contributing factor to the better performance of this trend. New methods employed in the completion of wells in the Navarro sand producing sector of the Cretaceous trend have resulted in important extensions and the rehabilitation of non-commercial producers. Total crude production for the district was 161,856,794 barrels, a slight decrease from the 163,200,000 barrels of the previous year. Liquid hydrocarbons recovered from gas totaled 24,413,032 barrels, which is an 11 per cent increase over the 22,051,657 barrels for 1951. Free gas well production was 1,159 billion cubic feet for 1952, an increase of 18 per cent over the 977 billion cubic feet produced in 1951.