Exploratory drilling declined sharply in the region during 1989, but average footage rose slightly. Fifteen successful wells and 8 gas wells resulted from 1989 drilling.

Even without any figures for development drilling in southwest Colorado the total number of development wells rose during 1989. There were 479 development wells--463 of them successful--reported in the area during 1989. Colorado probably had at least 100 more of each. The steep rise in development drilling is due to efforts to drill all available coalbed gas locations prior to expiration of a tax incentive.

Oil production declined by more than 5 million bbl, principally in Utah. Average price for the region rose from $14.75/bbl in 1988 to $18.31/bbl in 1989. Gas prices also rose to an estimated $1.80/mcf. Gas production rose nearly 10% from 1988 figures.

The region should see increased drilling in 1990 for Pennsylvanian algal mound objectives in the Paradox basin and for Jurassic Entrada sandstone. Drilling for coalbed methane will continue unabated.