The Upper Gulf Coast of Texas had a slight increase of 2.2% in drilling activity this year. The total number of wells drilled (exploratory + development) was 1,130 versus 1,106 last year. The increase is due to a 8.5% increase in development drilling while exploratory drilling declined by 3.6%. The success for all drilling was 54%, most of which is attributable to the 76% success rate for onshore development wells. The Eocene-Paleocene trend and the Oligocene trend were the most active onshore areas and the Pleistocene trend continued to dominate the offshore activity. Six platforms had been set in the Pleistocene trend by year end and 14 more were scheduled to be set. Six lease sales were held this past year; 3 were state sales and the others were federal offshore-contin ntal-shelf sales. Federal Sales OCS 37 and 38-A offered acreage in the Upper Gulf Coast area and drew record low bids.