The production of natural gas in Eastern Canada increased sharply in 1977, but oil production was down only slightly from 1976. A total of approximately 8.4 Bcf of gas and 616,000 bbl of oil was produced. This represents a production increase of approximately 56% in gas and a decrease of only 1% in oil from 1976. Most of the gas increase is attributed to an escalation in production from Lake Erie.

Geophysical activity and exploratory drilling declined compared with the previous year. Six dry exploratory tests were completed on land areas, all in the Province of Quebec, and 3 were drilled offshore on the Scotian Shelf. One of the onshore tests was classed as suspended at year end. In southwestern Ontario, 54 exploratory and 114 development wells were drilled in 1977, a decrease of 4 exploratory wells and an increase of 22 development wells from 1976.

Silurian exploratory drilling decreased 28% offshore and development drilling remained the same as in 1976. Although the total number of wells was down from the previous year (10%), the footage count was greater, as certain wells were drilled to evaluate deeper zones.

Six pinnacle reefs (5 gas, 1 oil) were discovered in Lambton County. Additional successful follow-up drilling has occurred on 5 of the 6 discoveries. An Ordovician oil discovery in Essex County together with additional Ordovician development drilling in Gosfield South township has renewed interests in that part of the province.

Several significant gas discoveries were made last year in Lake Erie and a notable development-drilling program was undertaken.