The production of natural gas in Eastern Canada increased 21.66% in 1978, whereas the production of oil dropped 1.4%. A total of approximately 308,564,600 cu m of natural gas and 97,314.7 cu m of oil was produced from southwestern Ontario and New Brunswick. Most of the increase in natural gas production is the result of additional wells within Lake Erie being placed on-stream this past year.

Exploratory drilling increased slightly in Quebec and the Atlantic provinces, but geophysical activity remained constant. During 1978, 12 exploratory tests were completed: 5 were drilled in Quebec, which resulted in 3 dry holes and 2 suspended wells and 7 were drilled offshore on the Scotian and Labrador Shelves, resulting in 6 dry holes and 1 gas well.

In southwestern Ontario, 64 exploratory and 99 development wells were drilled in 1978. This represents an increase of 10 exploratory wells, but a 15-well decrease in development drilling. The increase in exploratory drilling has lowered the exploratory success rate from 40.74% in 1977 to 28.13% in 1978. Five pinnacle reefs (3 gas, 2 oil) were discovered in Lambton County during 1978. The 1 Ordovician gas discovery in Kent County has continued to stimulate deeper tests southwest of the province. An active drilling program, begun in Bruce, Huron, and Perth Counties by several major companies, had no success by year end. Continued success in the development drilling program within Lake Erie has accounted for the high percentage (59%) of development wells there. It appears that this patte n will continue into 1979.