Over-all exploration expenditures in Western Canada during 1964 were at an all-time high of about $320 million. Most of the increase resulted from higher Crown land sales and, to a lesser extent, from increased wildcat drilling. Geophysical work remained at about the 1963 level, but surface mapping continued to decline sharply. Most of the exploration interest and significant discoveries were in the Devonian Gilwood Sand of north-central Alberta, the Leduc reefs and Wabamun Dolomite of west-central Alberta, and the Slave Point reef of northeastern British Columbia.

Other highlights of 1964 were: (1) a sharp rise in land acquisitions, particularly in the far north and in Saskatchewan, (2) a large increase in estimated gas reserves, (3) record production in all sectors (liquids, natural gas, and sulphur), (4) the approval by the Alberta Government of new gas exports of 4.8 TCF (2.44 TCF for Trans-Canada and 2.32 TCF for Alberta and Southern), bringing the total amount now approved for export from Alberta for all companies to over 23 TCF, and (5) the approval in Alberta of a new oil-prorating system which, after a four-year transition period, will become fully effective on May 1, 1969. Under the new formula, the allocation of production will place greater emphasis on the field recoverable reserves and less on the economic allowable feature, permitt ng the larger reserve fields to gain a greater share of the market while reducing the incentive for the rapid development of the more marginal fields. Comparisons below are with 1963:

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