Drilling activity in South Texas during 1959 increased 7.5% over the 1958 level. Exploratory drilling declined 14.3% but development drilling increased 19.7%. 96 discoveries resulted from 892 wildcats in 1959 for a 10.7% success ratio as compared with 83 new fields from 1,041wildcats for a 8% success ratio in the previous year. The most important discovery appears tobe the Brazos Oil Company’s Person No. 1 in Karnes County which is the first oil discovery of any magnitude within the downdip Cretaceous (Edwards) trend. Oil and gas production increased slightly but liquids produced from gas wells had a substantial increase. Geophysicalactivity increased with the largest increase being in the Paleozoic trend.