The 1973 drilling activity in Mississippi, Alabama, Florida, and Georgia decreased 19.6% from 1972. A total of 516 tests was drilled in 1973 compared to 642 in 1972. Exploratory tests totaled 306, down 81 from 1972, and 37 discoveries, 3 less than in 1972, were completed for a 12.1% success rate. Development drilling accounted for the remaining 210 tests and 108 producers were completed for a 51.4% success rate. This represented a decline of 45 tests and 45 completions from 1972. New-field discoveries decreased from 26 in 1972 to 23 in 1973 and none of these appears to be of major significance.

Drilling for Jurassic objectives, primarily the Smackover Formation, again dominated activity, with 37% of the total tests drilled. Interest continued to increase for Paleozoic objectives in the Black Warrior basin as 62 tests were drilled compared to 48 in 1972. Upper and Lower Cretaceous activity remained near 1972 levels, but drilling in the Eocene Wilcox trend declined significantly. Rig, pipe, and tubing shortages throughout the year plus extensive flooding in parts of Mississippi were important factors in the overall drilling decline.

Seismic activity declined in the most active states of Mississippi, Alabama, and Florida.

Leasing activity was highlighted by the Mafia offshore lease sale, with major interest shown for acreage offered near the large Destin anticline, where 34 of the 87 total sale tracts were leased. A record $212 million-bid was made for one tract on the structure. Significant onshore leasing areas were in the coastal counties of Mississippi and Alabama, the Black Warrior basin, northern Florida, and southern Georgia.

Exploratory results are expected to improve in the southeastern states in 1974 with increased emphasis on Paleozoic, deep Jurassic, and Lower Cretaceous objectives. However, overall drilling activity is not expected to increase significantly over 1973 because of critical rig and pipe shortages, a tendency toward more selective drilling, and declining development activity. Hopefully, offshore drilling can begin by mid-1974. The vast undrilled and relatively unleased Mafia offshore area offers considerable potential for near-future domestic petroleum exploration.