Developments in Southeastern States in 1976

Abstract

Total drilling activity in Mississippi, Florida, and Georgia increased 1.5% from 1975. A total of 600 tests was drilled compared to 591 in 1975. However, exploratory drilling declined 10.2%, as 318 tests were drilled--36 less than in 1975. Although total exploratory drilling decreased, new-field discoveries increased significantly from 27 in 1975 to 36 in 1976. The new-field success rate was 12.4% compared to 8.7% in 1975. The higher new-field statistics reflect better selectivity and more judicious drilling by operators in the southeast. The shallow Wilcox trend of southwestern Mississippi was the leading drilling trend by far. Drilling decreased in the Jurassic and Paleozoic trends, but showed a significant increase in the Cretaceous trends. Lower Cretaceous Hosston gas prospects in the central part of the Interior Salt basin were of particular interest to operators in the latter part of 1976. Continued high interest is expected in this trend during 1977. Seismic activity was lower than in 1976 with much of the work being detailed or limited reconnaissance surveys supplementing data acquired in previous years. Intensive leasing activity in the Lower Cretaceous Hosston trend of the Interior Salt basin led to high prices for both leases and royalty. Elsewhere, no extensive blocks were assembled, and leasing, although active, appeared to be mainly a continuation of efforts started in previous years. Total drilling activity is predicted to remain about the same in 1977 as in 1976. Governmental policies again will be most important, particularly in exploratory drilling. Most drilling activity will be conducted by independents and aggressive smaller companies, but more activity by major companies is expected.