Exploration for oil and gas in Alaska during 1956 continued at about the same level as in 1955. Wildcat starts decreased in 1956 and there were no completions. Five drilling rigs were active in 1955 compared with three in 1956. Drilling was commenced or resumed on two Tertiary tests and one Mesozoic test in south-central Alaska and a Tertiary test, the Phillips-Kerr-McGee's Sullivan Unit No. 2, was spudded and drilling below 10,000 ft. at the end of the year in southeastern Alaska. Geophysical activities increased slightly from 7 party-months in 1955 to 9 party-months in 1956 whereas surface investigations remained at the 1955 level of 30 party-months. Applications for Federal oil and gas leases increased from approximately 800,000 acres in 1955 to about 2 3/4 million acr s in 1956. The majority of the newly acquired acreage is in the Yakutat area of southeastern Alaska and the Kateel River area of west-central Alaska.

Significant developments, which indicate increased activity in 1957, include the awarding of a 10-year development contract to the Colorado Oil and Gas Corporation covering over one million acres in the Yakutat area, southeastern Alaska, and the approval of the Richfield Oil Company's 71,680-acre Swanson River Unit, on the Kenai Peninsula, Alaska. Richfield and Colorado Oil and Gas plan to commence drilling operations during the early part of 1957.