In southwestern Ontario, both exploration and development activity continued to decline. Exploration drilling decreased from 91 tests in 1964 to 80 in 1965 and development drilling from 125 wells in 1964 to 108 in 1965. Cambrian-Ordovician and Silurian objectives each accounted for 35 exploratory tests; however, Silurian development completions outnumbered Cambrian-Ordovician 91 to 12. Offshore drilling showed a 70% increase from 20 wells in 1964 to 34 in 1965. Ontario annual oil production set a new high of 1,279,079 bbls., and annual gas production declined to an estimated 12,760 MMcf.

Of the 80 exploratory tests, 3 were completed as oil discoveries and 9 as gas wells. The most important discovery appears to be I.O.E. Sombra 14-14, completed in a Guelph pinnacle reef for an AOF of 14 MMCFD. The remainder resulted in small increases to proved reserves.

In the Hudson Bay lowland, both industry and government geological and geophysical field activity showed a substantial increase from 1964. There was no exploratory drilling reported for 1965 and industry has not announced any drilling for 1966.

Industry activity in Quebec consisted of 6 crew-months of geophysics and 2 dry exploratory holes on Anticosti Island. In addition, there were 48 shallow-drift of bedrock tests and 8 storage tests completed. The Quebec government reported 5 party-months of geological surveying in the sedimentary area of the province.

In the Atlantic region, only 1 development oil well was reported from New Brunswick. Exploration drilling was limited to 2 holes in Newfoundland. Both gas and oil production from the Stony Creek field declined despite secondary-recovery operations.

Offshore activity in Eastern Canada overshadowed activity on land. Land holdings increased from 69,115,823 acres in 1964 to 113,969,453 acres in 1965. Geological and geophysical crew-months almost quadrupled from 7 in 1964 to 26½ in 1965. Government and scientific institution surveys remained relatively constant with 36 crew-months reported for 1964 and 37 for 1965.

For 1966, it is anticipated that offshore geological and geophysical operations in the Hudson Bay lowland and particularly in Eastern Canada will continue to increase. No wildcat drilling has been announced for the Hudson Bay lowland, but drilling may be expected as the tempo and interest increase. On the Grand Banks off Newfoundland, 2 or 3 deep, 8,000-10,000-ft. wildcat wells are expected to be drilled in 1966.