Drilling operations in the southeastern states of Alabama, Florida, Georgia, Mississippi, and South Carolina declined from 896 tests in 1966 to 764 tests in 1967, a decrease of 14.7%. Of the total completions, 395 were exploratory tests accounting for 39 discoveries.

The Wilcox (Eocene) trend of southwestern Mississippi accounted for most of the drilling activity (65% of all wells drilled) in the southeastern states. The most important developments were in the Jurassic trend of Mississippi and Alabama where drilling activity increased 71% with increases in both exploratory and development drilling. Two of the most significant developments were the discovery of oil in the Norphlet Formation, thus establishing another major objective in the Jurassic, and the discovery of Smackover oil in Alabama for a new oil pay in that state. Several tests were drilled in Florida with no success. No tests were drilled in Georgia or South Carolina.

A slight increase in geophysical activity was registered in 1967 which was largely the result of increased activity in the Jurassic trend of Mississippi and Alabama.

Continued exploration is expected in Alabama, Florida, and Mississippi in 1968 with the Wilcox and Jurassic trends being the most active.