Drilling in S. Texas increased by 5.8% in 1961. The deep Edwards trend has been extended considerably NE., and 3 multipay Frio discoveries, 2 in Brooks County and 1 in Victoria, give promise of being major fields. Development wells accounted for the drilling gain with a 13.7% increase, while exploratory drilling declined by 11.1%. The 22 oil and 79 gas discoveries give a success ratio of 1:8, 2.9% greater than in 1960. Production increased in 1961, oil by 1.7% and gas by 5.4%. Geophysical activity increased by 8.7%, entirely seismic, and reflects the increasing interest in the deep Wilcox and Edwards.