The area covered in this paper extends westward from a line drawn north and south through San Angelo, Tom Green County, Texas, to include Eddy County, New Mexico, and southward from the north line of Cochran and Hockley counties in Texas to the Southern Pacific Railroad through Brewster and Terrell counties.

Drilling operations in the area during 1938 were 21.2 per cent less than in 1937. Additions to reserves consisted of four new discoveries, one rejuvenation and extensions to several existing fields. Wildcat and outpost operations were 23.4 per cent greater in the area than in 1937, but favorable results were somewhat limited. Southeastern New Mexico had 66 wildcats and outposts as against 43 in 1937 with two new discoveries and one rejuvenation. West Texas had 192 wildcat and outpost operations as compared with 166 during 1937, resulting in two new discoveries. Several fields in the area were extended, some of them vertically as well as laterally. A few of the outposts were definition wells, but the limits of some of the important fields are as yet unknown. Nearly all operations (89.6 per cent), were field wells.

Considerable core-drilling and geophysical prospecting was done in the area, especially in New Mexico.

Very little Ordovician testing was done during the year, and the results were negative.