Exploration activity in Canadian east coast offshore regions was at a record level in 1985. Drilling was completed at 20 exploratory wells, 6 delineation wells, and 1 relief well. At year end, drilling was still in progress at 2 exploratory and 3 delineation wells. Seven new discoveries were reported: 3 oil discoveries and 1 oil and gas discovery off the coast of Newfoundland, and 3 discoveries of natural gas on the Scotian Shelf. In addition, 2 of the delineation wells encountered significant amounts of oil offshore Newfoundland, and 2 encountered significant amounts of natural gas offshore Nova Scotia on the Scotian Shelf. Estimated resources in the 39 offshore discoveries made to the end of 1985 are 205.1 million m³ of oil and condensate and 279.8 billion m3 of natural gas. There are currently 66 exploration agreements in effect throughout the region, covering a total of over 16 million ha.

Two exploratory wells were drilled in west-central Hudson Bay in 1985. Both wells were plugged and abandoned without testing.

In Ontario, drilling activity continued at a steady pace with 192 wells drilled: 67 exploratory wells, 100 development wells, and 25 wells classed as "other." Sixty-three wells were completed as gas producers and 24 as oil producers. Oil and gas production in 1985 increased 25.1% and 7.8%, respectively, from 1984, to 112,952.9 m³ of oil and 589,746.6 thousand m³ of natural gas. The increased oil production was due almost entirely to new production from Trenton-Black River carbonates.

In New Brunswick, 4 wells were drilled in 1985. Three of these wells are waiting on completion; the fourth, a development well completed in Stoney Creek field, was abandoned as a dry hole.

In Quebec, drilling activity increased, as 23 exploratory wells were completed in 1985. Nineteen of these wells were reported as oil shows. Gas production from Saint-Flavien field was reported as 13,489 thousand m³.