Exploratory drilling in East Texas increased 43 per cent compared with 1950. Thirty discoveries were made, eight more than the previous year, being 16 oil wells, and 14 gas-condensate wells. These include 15 successful new-field wildcats, 3 long extensions, 5 deeper pools, and 8 shallower pools. The remainder of the 242 exploratory wells were dry holes.

An Upper Jurassic discovery in Rains County is considered to be of major geological significance. In addition to being a new gas-condensate field, it has the potentialities of a new sulphur reserve.

The more important new fields showed a trend toward increasing gas-condensate rather than oil reserves.

New producing zones were located at Ham Gossett, Walter Fair, Buffalo, Tennessee Colony, and Scottsville fields.

Drilling operations in proved areas declined in 1951. The East Texas field was again the most active field. Production figures show that 73 per cent of the total accumulated production in the district has come from the East Texas field.

Geophysical exploration increased 15.6 per cent over the previous year. Leasing activity almost tripled over 1950. The sharp decrease in average price per acre reflects new interest in less densely drilled parts of the district.