This report covers the period 1983 through 1985. From 343 exploratory wells drilled in 1982, the total declined to 229 and 199 tests, respectively, in 1983 and 1984. This downturn was due to excessive gas supplies. A sharp recovery to 312 tests occurred in 1985. A preference for oil prospects is shown by a reversal of the ratio of oil to gas completions during the period. The success rate also climbed to 41.66% in 1985. A leading contributor to this high success rate was the completion of 95% of step-out and outpost wells in the San Juan basin during 1985.

In Utah, development drilling was sparked by increased density drilling in Altamont-Bluebell field and in the Aneth area. Nitrogen and carbon dioxide projects are being planned for Auschutz Ranch East and Aneth fields, respectively.

Frontier exploration moved to the Paleozoic shelf and slope deposits of Nevada, a possible southern extension of the Overthrust belt, and the Baca basin of Arizona and New Mexico. Exploration contracts with the Bureau of Land Management are being used to explore large blocks of federal acreage in remote areas.