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By Harry H. Nowlan

A heavy development campaign progressed during the year 1936 in South Texas1, following up important discoveries made in 1935. Oil and gas wells completed during the year were 1473 against 704 in 1935. The drilling program reached its peak of operations in June in consequence of offset requirements made necessary principally in Duval County in the Seven Sisters, Loma Novio, Lopez and Cole fields. There were six new fields discovered during 1936 as follows: Rhode in McMullen County; Peters, El Mesquite and North Kohler in Duval County; Wood in Starr County and Colorado in Jim Hogg County. No discovery of unusual consequence was made during the year. The pools mentioned above are simply in the primary stages of development. The most intensive exploratory work during the year was in Duval, Webb and Zapata Counties. Considerable activity also prevailed in Starr and Brooks Counties. Much significance is attached to the California Company's discovery in the Alta Mesa field in Brooks County, which is considered to be a deep-seated salt dome. The Comitas field, in Zapata County, developed some surprisingly good production in a shallow sand at 900 ft. and is being followed by a heavy wildcat campaign throughout that area in search of like production. In Starr County an active wildcat campaign is in progress in a continued effort to find new fields northwest of the Sam Fordyce field, in Hidalgo County. This play continues in a northerly direction through Starr and Jim Hogg Counties. New Fields Rhode.—The Rhode field, in southeastern McMullen County, was opened in May by the Magnolia Petroleum Co. with a gas well in the Whitsett (Upper Jackson) sand at a depth of 1810 to 1822 ft., this test is located in the southeast corner of sec. 86 on the Rhode ranch. Four gas wells have been completed, proving up a gas area of 1000 acres, more or less. Development will be slow because of lack of market for the gas.

Jan 1, 1937

By T. C. Craig

During the year 1936, there were 654 oil wells drilled in the Texas Panhandle, with a total daily initial production of 256,049 bbl. Although 74 more wells were drilled than in the previous year, the total initial production lacked 109,303 bbl. to equal that of 1935. The explanation is that during 1935 most of the drilling was in the granite-wash area, which is much more prolific than the dolomite, in which the major development was done during 1936. Twenty-one oil wells were drilled deeper, increasing their potential 3683 bbl. The total daily oil potentid of the field Dec. 31, 1936, as determined by the Texas Railroad Commission, was 834,888 bbl., with a daily allowable production of 71,335 bbl. No overall field decline in production is recognized by the Texas Railroad Commission. A well is tested upon completion to determine its potential production. If the well is then shot with nitroglycerin or is treated with

Jan 1, 1937

By H. W. Imholz

This report covers most of the counties in North Central Texas in which oil is being produced in commercial quantities. The exceptions are McCulloch and Runnels, which were omitted because the production is small and the detailed information necessary for a report is not available to the writer. Complete information was not available regarding the number of wells drilled in this district during the year. The writer wishes to thank Mr. T. F. Petty, of the Humble Oil and Refining Co., Wichita Falls, Texas, for information used in compiling Table 2.

Jan 1, 1937

By W. V. Vietti, E. P. Hayes

OpeRations on the Texas Gulf Coast during 1936 increased materially over 1935. A number of new fields were discovered and a few of the older fields were extended, both by the discovery of deeper pay sands and by lateral expansion of the known producing horizons. Twenty-seven new fields have been discovered, of which 25 are oil fields and the others are gas fields that have every indication of becoming oil-producing areas. Amelia, Anahuac, Bay City, North Pettus, Placedo, Pickett Ridge and Tomoconnor have had major extensions. Production for 1936 amounted to 91,224,844 bbl., an increase of 21,627,033 bbl., or 31 per cent, over the 1935 production of 69,597,811 bbl. The number of producing wells at the end of 1936 was 6727, as compared with 4851 at the end of 1935. Proration has continued in force, thus decreasing the rate of depletion and the number of abandonments normally expected. New Fields A brief discussion of the new fields follows, in addition to Tables 1 and 2, which contain the general data on these fields. Aransas (McCampbell).-Buckingham and McCampbell No. 1 McCampbell was drilled to 7501 ft., then plugged back to 6560 ft. and completed in the Marginulina for a 100-bbl. flowing well on July 18. Bee County.—The Voss field, discovered by Swiger and Devonian's No. 1 Voss, and the Holzmark field, discovered by Miller and Donzis on the Holzmark farm, are both of the same type structurally and are caused by folding against a fault, one field being on one side of a fault and the other on the opposite side of the same fault. Brooks County.—-Standard Oil Company of Texas Garcia No. 1, the discovery well in the Alta Mew field, and Dick Young's Singer No. 1, the discovery well of Alta Verde, appear to indicate small fields. Garcia No. 1 was drilled to 8022 ft. and plugged back to 2485 ft., at which depth the well made 189 barrels. Lockridge.—This gas field was discovered by Gulf Production Company's Fairfield No. 1, in Brazoria County. It was originally drilled to

Jan 1, 1937

By W. C. Bednar

In all, 127 producing oil wells, 8 producing gas wells and 212 dry holes were drilled during 1936 in the Central Texas area; 76 wells in Bexar County, 62 in Caldwell County, 44 in Guadalupe County, 22 in Williamson County, 20 in Navarro County and 20 in Frio County. Less than 20 were drilled in each of the other counties and none at all in Ellis, Hill, Bosque, Coryell, Lampasas, Burnet, Llano, Kennedy, Mason, Real, Kinney and Uvalde Counties. The Pearsall-Austin chalk field in Frio County and the Zoboroski field in Guadalupe County were the only new discoveries and there were no important extensions to old fields. In this report Corsicana, Mildred (Elm Ridge), Angus-Edens-Hodge, Burke, and Rice-Oil Ridge, all shallow Navarro County stripper fields, are grouped together under the name of Corsicana. This grouping follows that of the Railroad Commission of Texas, thus facilitating the gathering of production data. A map showing the location of the oil and gas fields in the Central Texas Area was published in Volume 114 of the A.I.M.E. TranBactions, page 380. New Fields Pearsall-Austin Chalk.—The Amerada Petroleum Corporation completed 13 Austin chalk wells during 1936 on the large Amerada-Rycade block in Frio County. Other companies drilled two dry holes to the Austin chalk in this vicinity. Not enough wells were drilled to give control of the structure but it appears to be a nose plunging in a west-southwest direction. A second deep test is being drilled in the Pearsall area and at this writing has cemented off a show of oil and gas in the Edwards limestone. The Humble Oil and Refining Co. is building a 6-in. pipe line from Lytle, Tex., to serve the Pearsall field. Zoboroski.—Actual discovery of the Zoboroski field was made by W. J. Walton et al. in 1931. The discovery well, Anton Zoboroski No. 1, was a small producer making but from 3 to 5 bbl. per day, which was used locally for fuel oil. The discovery of the Darst Creek Extension in

Jan 1, 1937

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

By W. A. Ver Wiebe

UNder the impetus of new demands caused by the defense program, the oil and gas industries of Kansas established new records during the year 1941. In all, 2113 wells were drilled, which compares favorably with the record total drilled in 1937. These 2113 tests resulted in 1446 oil wells, 76 gas wells and 592 dry holes. In all three categories there was an increase over the previous year, but unfortunately the most marked increase was in the dry holes. Nearly 80 per cent of the increase must be allocated to the drilling 01 unsuccessful tests. This was partly because of the increasing difficulty of finding new reserve areas and partly because of the erratic character of the production in the Arbuckle dolomite, which is now the main producing zone. Closer analysis of the totals reveals that western Kansas accounted for 1634 tests, of which 1186 were oil wells, 34 were gas wells and 415 were dry holes. The total potential initial daily production uncovered by the successful wells amounted to 1,691,000 bbl. of oil and 508,000,000 cu. ft. of gas. Both figures indicate a considerable decrease when compared with the proceeding year; in 1940 the respective figures were 2,128,000 bbl. and 1,289,000,000 cu. feet. In eastern Kansas a total of 479 wells were drilled. Among these, 260 were oil wells accounting for a daily initial potential production of 45,662 bbl. The new gas wells numbered 42 and added 290,438,000 cu. ft. per day to the gas potential production of the state. The remaining tests, 177 in number, were dry. It is interesting and significant that almost half (791) of the total wells drilled in western Kansas were drilled by the independent operators. Among the large companies the Cities Service Oil Co. drilled 169 wells; the Stanolind Oil and Gas CO., 101; the Skelly Oil Co., 80; the Continental Oil Co., 99, and the Shell Petroleum Co., 63 wells. In eastern Kansas the independent operators drilled 406 out of the total of 479 wells. Among the major oil companies the Cities Service Oil Co. drilled 38; the Phillips Petroleum Co., 13, and the Sinclair-Prairie Oil Co., II wells. The figures on relative percentages of dry holes to successful oil or gas wells are revealing. In western Kansas approximately one third of all wells drilled by the independent operators were dry holes. The major oil companies drilled approximately 844 wells in western Kansas, of which 678 were successful in finding either oil or gas. It thus appears that the major companies fared much Getter than the independents. In eastern Kansas the major companies drilled 73 wells of which 63 were successful in finding commercial quantities of oil or gas. No less than 286 wildcat tests were put down in western Kansas and 72 in eastern Kansas, or 358 in all, during 1941. Considerably more than half of these were drilled by independent operators; zoo in western and 66 in eastern Kansas. An exploratory hole % mile or more from production is regarded as a wildcat well in Kansas. On a percentage basis, approximately 75 per cent of all wildcat wells were failures; only 25 per cent found oil or gas in western

Jan 1, 1942

By John G. H. Crump, E. W. Owen, Peter P. Gregory

.Although oil Production in West Texas in 1939 reached the highest figure for any year since the inauguration of proration, drilling activity continued in the decline that had commerlced the previous year. Production totaled 79,469,341s bbl. of oil during 1939 as compared with 71,257,541s bbl. in 1938 and 75,743,000 in 1937. The number of wells completed in 1939 was 1850, compared with 2045 in 1938 and 2806 ill 1937. Several factors combined to cause the decrease in drilling activity, principally the contiriued increase in the length of time required to obtain a return of invcstment and the scarcity of important new discoveries during the past two years. Of the 1850 completions 1638 resulted in oil wells, 4 were gas wells, 168 were dry holes and 40 were abandoned locations; 1990 new locations were made during the year. The ratio of dry holes to producing wells completed was one dry hole to each 9.75 oil wells, compared with one dry hole to each 7.48 oil wells completed during 1938. This large decrease in dry holes was due to a marked decline in the number of wildcat wells drilled, there having been only 120 wildcat completions during 1939. In addition to the lessened exploration work, the deeline' in activity was largely accounted for by the slowing up of operations in the older pools of Ector, Howard and Winkler Counties. Ector County, which had led West Tcxas in 1938 with 622 new oil wells, furnished only 485 producers in 1939, but was still the leader for the West Texas district. The largest gain in activity was in Yoakum County, whew 350 oil wells were completed in the Denver-Wasson field against 152 during 1938. Most of the older oil fields have been almost completely drilled up, only a few new producers still being completed from time to time in

Jan 1, 1940

By E. W. Owen, John G. H. Crump, Peter P. Gregory

.Although oil Production in West Texas in 1939 reached the highest figure for any year since the inauguration of proration, drilling activity continued in the decline that had commerlced the previous year. Production totaled 79,469,341s bbl. of oil during 1939 as compared with 71,257,541s bbl. in 1938 and 75,743,000 in 1937. The number of wells completed in 1939 was 1850, compared with 2045 in 1938 and 2806 ill 1937. Several factors combined to cause the decrease in drilling activity, principally the contiriued increase in the length of time required to obtain a return of invcstment and the scarcity of important new discoveries during the past two years. Of the 1850 completions 1638 resulted in oil wells, 4 were gas wells, 168 were dry holes and 40 were abandoned locations; 1990 new locations were made during the year. The ratio of dry holes to producing wells completed was one dry hole to each 9.75 oil wells, compared with one dry hole to each 7.48 oil wells completed during 1938. This large decrease in dry holes was due to a marked decline in the number of wildcat wells drilled, there having been only 120 wildcat completions during 1939. In addition to the lessened exploration work, the deeline' in activity was largely accounted for by the slowing up of operations in the older pools of Ector, Howard and Winkler Counties. Ector County, which had led West Tcxas in 1938 with 622 new oil wells, furnished only 485 producers in 1939, but was still the leader for the West Texas district. The largest gain in activity was in Yoakum County, whew 350 oil wells were completed in the Denver-Wasson field against 152 during 1938. Most of the older oil fields have been almost completely drilled up, only a few new producers still being completed from time to time in

Jan 1, 1940

By John G. H. Crump, E. W. Owen, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By E. W. Owen, John G. H. Crump, Peter P. Gregory

A noticeable decrease in activity characterized the year 1938 in the West Texas area. The total number of wells completed dropped to 2045 for 19381 as compared with 2806 completions in 1937,l a decline of 27.12 per cent. This trend contrasts the sharp increase of 76.29 per cent in completions in 1937 over the 1936 total. Of 2045 well completions during 1938,' 1788 were oil wellsll 16 were gas producers1 and 241 were listed as failures.' During 1938 the ratio of dry holes drilled to oil-producing or gas-producing wells completed was one dry hole to each 7.48 oil wells, which compares with one dry hole drilled to each 7.477 oil wells in 1937. Nearly 200 wells drilled during 1938 in West Texas were either wildcat or partly wildcat wells, an increase of about 25 over the year 1937, when approximately 175 wells drilled were so classified. The 200 exploratory wells drilled represent about 10 per cent of the total number of wells completed. West Texas produced 71,257,541 bbl.1 of oil in 1938 as compared with 75,743,000 bb1.2 of oil in 1937, a decrease of 4,485,459 bbl., or a 5.92 per cent decline. By comparison, West Texas produced 22.36 per cent more oil in 1937 than during 1936. In December 1938, the 9247 producing oil wells in West Texas1 averaged 22.08 bbl. per day per well as compared with December 1937, when 7571 wells1 produced an average of 25.18 bbl. per day per well, or a decline in daily well average of 12.32 per cent. Discoveries No outstanding new fields were discovered in West Texas during 1938, in spite of continued, active wildcatting operations. Several new oil-producing areas were, found, however, the value of which is still unknown.

Jan 1, 1939

By T. E. Weirich

Although 1931 witnessed no new discoveries of oil or gas in Oklahoma, the year is especially outstanding because of price demoralization, political intervention, abandonment of marginal properties, a strict curbing of oil flow from wells in flush fields and an extension of proration into settled fields. In spite of a strict, adherence to proration agreements, the price per barrel of oil sank from 65c to $1.07 to a low level of 10c to 22c. Table 1 gives the price range for crude oil in Oklahoma during the year. Under a martial law order by the governor, a period intervened from Aug. 4 to Oct. 10, of complete shutting in of the flush fields. This condition created an abrupt decline in the production curve during the two months' period. Oklahoma, as elsewhere, is passing through a "transition period" of relieving expensive above-ground storage by maintaining the more copious supplies of crude oil in the natural reservoirs. For many years the thousands of small, nearly depleted wells have been considered as being the "backbone of the industry." A large number of wells of this type are now idle or completely abandoned. More than 1100 abandonments were recorded by the state Corporation Commission during the year. The industry is becoming less interested in these small wells, replacing the former attitude by the curbed potentialities of flush pools. Many of the major companies are grouping these marginal properties with those of adjacent owners, operating the whole

Jan 1, 1932

By V. R. Garfias

It has been repeatedly questioned whether estimates of oil reserves are of any practical value, as the greater number of such calculations previously made have subsequently been proved to be grossly inaccurate. But even admitting partial justification for such statements, it must be evident that some idea, however approximate, of the available reserves of essential minerals is of vital importance in mapping their development and the future trend of the related industries, particularly if it is kept constantly in mind that these estimates—which are never intended as a final word—must be continually subject to revision in accordance with the changes in their component factors. The value of these estimates, therefore, hinges on the clear understanding that they can only apply within the limited time when the controlling factors remain unchanged. It should be understood, however, that while estimates of possible and probable oil deposits are as a rule but idle conjectures, appraisals of proven oil reserves can undoubtedly be made with an ever-increasing degree of accuracy. And it is with this in mind that in the present study the endeavor has been to estimate only the world's proven oil reserves—the oil that yet remains underground in the producing fields—and their logical extensions, and to leave out of consideration the questionable volume of the probable and possible oil reserves. In Table 1 the countries at present producing oil in commercial quantities are listed in the order of the magnitude of their proven reserves. As shown in the table, the world's proven oil reserves are estimated at over 24 billion barrels, while the total production to the end of 1932 aggregates nearly 23 billions. Past production represents, therefore, 48 per cent, and proven reserves approximately 52 per cent of the total. About 61 per cent of the reserves are located in the American continent and close to 33 per cent in the Near East fields of Russia, Iraq and Persia. It is interesting to note that the proven reserves in the important producing regions almost equal if not exceed their production to date. The Mexican fields are a remarkable exception in this respect since they produced over 135 billion barrels and have proven reserves estimated at only 300 million barrels.

Jan 1, 1933

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1939 oil production experienced a new and important increase in Argentina in the productive areas of Comodoro Rivadavia (Territory of Chubut), Plaza Huincul (Territory of Neuquén), and those of the. Province of Mendoza. Production in the Standard Oil Company's field in the Province of Salta declined, but that of the Government oil fields in that province inereased 62.5 per cent.

Jan 1, 1940

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Mario L. Villa

During 1938, oil activities in the Argentine Republic showed a favorable balance due to the increase in crude-oil production, the incorpora- tion of new producing areas and the discovery of deeper productive horizons. Drilling was as follows:

Jan 1, 1939

By Guillermo Hileman

Probably the outstanding feature of the oil industry in the Argentine, during the past year, was the increase in production from the Comodoro Rivadavia field. This increase was accounted for by the discovery of a deeper producing horizon in the old coastal field (zone A). The oil, derived from the deeper sands, served not only to balance the natural decline of the upper sands and increase the yield from the area, but also provided a product of comparatively superior quality. The finding of this ney- production in the old field had a special economic significance because of the pumps, tanks and pipe lines already installed to take care of it. The deep horizon is looked upon as a life

Jan 1, 1937

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942

By J. E. Brantly

In October 1939, a drilling program was commenced on the Atlantic seaboard of Brazil, with three steam rotary rigs of medium capacity. One of these was assigned to the State of Alagbas and the other two to the State of Bahia. During the remaining few months of 1939 and during the year 1940, some eight wells were drilled, two in Alagbas and six in Bahia. Two small producers were found in the latter state. In early 1941 three medium-weight Diesel rigs were added to the equipment, thus permitting the drilling of some 15 wells during the year 1941. The two small producers found in 1940 in the State of Rahia were near the city of Silo Salvador. In 1941 three additional small wells were brought in, in the same area, and a further producer on an isolated structure some 75 km. to the northwest of this production. No commercial production has been found in the State of Alagbas. Approximately 26 wells have been drilled or are drilling, six of which are producers— five in one area and one in another. The program for 1942 calls for the development of the two areas in which wells have been found and also the drilling of several wildcat structures located either by geophysics or surface geology. All production in the area of the several producing wells is somewhat less than 2000 ft. and in the other area about 3800 ft. The area of the several wells is known as the Lobato field, and is practically within the city limits of Sao Salvador. The area 75 km. northwest of the city will be known as the Candeias field.

Jan 1, 1942