The discovery of a major oil field at Leduc on the Central Plains of Alberta in February, 1947, accelerated drilling and exploration to the most active program ever to be undertaken in Western Canada. It also resulted in a complete revision of the oil and gas regulations pertaining to reservation and leasing of Crown lands under the administration of the Provincial Department of Lands and Mines. The Provincial Government introduced new limitations and modifications of the previous regulations. The total footage drilled in Alberta was 883,938 feet, resulting in 102 completed oil wells, 14 incomplete but probable oil wells, 33 gas wells, 75 dry holes, and one salt well. Besides the Leduc find an important discovery was made in the Lower Cretaceous strata at Bantry, southwes of the Princess field. Total oil production for the province amounted to 6,382,059 barrels of crude and 427,-225 barrels of natural gasoline. Active exploration for gas was continued in Southern Alberta and important additions were made to the over-all gas reserves by new gas discoveries throughout the province. Seismic exploration proved to be the most popular exploration tool during the year, although various other methods, including surface geological studies, gravity work, magnetometer surveys, and structure drilling were employed on a comprehensive scale. Because of the discovery of lucrative production in the Devonian strata at Leduc most of the exploration efforts were directed to exploring for additional Devonian pools in the low-dip strata of the plains region. Less attention w s paid to the foothills structures than had been the case in previous years. Several deep tests were made, however, in this geological province and a significant discovery of wet gas was made in the Pincher Creek area on the southwestern corner of the province. At the close of the year this well was undergoing additional testing.

In Saskatchewan an active drilling program surpassing all other years was conducted in the Lloydminster-Lonerock area where shallow Lower Cretaceous production of 18° gravity oil was being developed. The number of wells drilled in the province amounted to 105, accounting for a cumulative footage total of 204,485 feet. Of these, 89 were development wells and 10 were exploration wells in the Lloydminster field. Two wildcats were being drilled elsewhere in the Province at the end of the year. Total oil production for the year amounted to 535,033 barrels all from the Lloydminster-Lonerock field.

No deep drilling was undertaken in British Columbia during the year. One well was in a suspended state at a depth of 2,303 feet in the Lower Mainland area. Test drilling was conducted in the Peace of northeastern British Columbia. Some changes were made in the Provincial Petroleum and Natural Gas Act and Regulations. Approximately one and three-quarter million acres were applied for during the latter part of the year.

Considerable interest was aroused in the oil- and gas-producing possibilities of Manitoba. The regulations governing the disposal of oil and gas rights on Crown lands and the exploration, development and production of oil and gas in Manitoba were revised under the "Mines Act." Following this action, approximately 1,750,000 acres of Crown lands situated in the southwestern part of the province were reserved and leased during the year. Extensive seismic and surface geological studies were made by the Brandon Exploration Company, a subsidiary of the California Standard Company. Two wells were drilled for oil and gas by independent operators. One was abandoned at the top of the pre-Cambrian at the depth of 2,519 feet. The other was suspended at the depth of 1,540 feet.

Activities in the Northwest Territories were confined largely to the production of oil from Norman Wells. Total production for the year amounted to 297,256 barrels. Two shallow diamond-drill holes were drilled on the Hay River to depths of 918 and 351 feet, respectively.

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The decline in production of crude which had prevailed in Western Canada since 1942 was halted during the year. As a result of developments of Leduc and Woodbend the present domestic production rate should be doubled in a year. The Lloydminster field greatly expanded its production. New refinery capacity was set up at Lloydminster and a refinery to handle the Leduc production was being installed by the Imperial Oil Limited at Edmonton. Many companies not previously active in Canada set up offices to conduct aggressive exploration programs. Indications were that although 1947 had been a record year even greater activity was to be expected in all phases of the industry in 1948.

Exploratory drilling in Eastern Canada was mainly concentrated in southwestern Ontario where the search for new gas reserves accounted for 70 per cent of the wells.

A new gas field was discovered by the Imperial Oil Limited at Kimball, 11 miles south of Sarnia, Ontario, in the Salina formation.

An important test was drilled in the Minudie anticline near Amherst, Nova Scotia, by the Sun Oil Company. The well was abandoned as a dry hole in Mississippian rocks at 11,504 feet.