The 1958 recession curtailed operations in West Texas and Southeast New Mexico to the extent that both exploratory tests and total wells drilled were 13% below the 1957 high. This is the first decline in exploratory tests since 1954. 6,280 wells of all classes were drilled in the area. With reduced allowables, production for the year was 438,705,749 bbls., or 20% below the 1957 record year. Success ratio for all exploratory wells was 27%; the ratio for development wells was 90%. The most important discoveries were the Brown-Bassett field of Terrell County, Texas; the Dunigan, Happy, Red Loflin, and Teas fields in northern Borden and southwestern Garza counties, Texas; the Good, SE. field in southern Borden County, Texas; the Block 9 field in Andrews County, Texas; the I.A B. (5070 Penn) field in Coke County, Texas; the Little Lucky Lake field in southern Chaves County, New Mexico; and the South Vacuum field, Lea County, New Mexico.

Exploratory methods followed the same pattern as in previous years. Subsurface methods accounted for 38 discoveries, seismic 14, seismic and subsurface methods combined accounted for 15 successful wells, and 7 were drilled by non-technical or unknown methods. From the statistics it appears that more emphasis is being placed on detailed subsurface geological studies. Geophysical activity was 25% below the 1957 level. The Delaware basin continued to be the most active area from the standpoint of seismic work.

The concentration of interest in the Val Verde basin, northeast part of the Midland basin, Northwestern shelf, and parts of the Eastern shelf, accounted for a majority of lease acquisitions in the area. The state conducted only one University Land Sale but the bonus prices remained high. It is anticipated that more joint ventures and drilling units will result, in view of the unavailability of land in favorable areas. Acreage is being dropped in areas considered least promising.