Drilling operations in the southeastern states of Alabama, Florida, Georgia, and Mississippi declined from 786 wells in 1969 to 668 wells in 1970, a decrease of 15%. The decrease is due primarily to the subnormal number of wells drilled in the Wilcox area of Mississippi. Of the total completions, 311 were exploratory tests which resulted in 42 discoveries. Development drilling during 1970 included 357 completions netting 204 oil wells and 17 gas wells.

Deep drilling in the Jurassic trend of Mississippi and Alabama continues to highlight the drilling activity and registered a 20.4% success in exploratory drilling and 68.8% success in development drilling. Probably the most significant discovery during 1970 was the Smackover oil discovery at Jay field in Santa Rosa County, Florida, thus establishing the first Jurassic oil production in Florida. The discovery of Cotton Valley and Hosston oil production in Leflore County, Mississippi, extended production from these formations 47 mi north. Drilling in the Eocene Wilcox trend of southwestern Mississippi declined from 468 wells in 1969 to 263 wells in 1970.

An increase in geophysical activity was registered in 1970 resulting largely from an increase in seismic work in Mississippi and Florida.

Exploration is expected to continue at an active pace in the southeastern states in 1971 with the greatest emphasis in the Jurassic trend.