Exploratory Drilling As mentioned earlier, 130 exploratory wells were drilled in 1970, and 8 of them did not reach their objective because of mechanical failure. Of the remaining 122 wells, 76 were drilled as new-field wildcat wells and resulted in 13 new oil and gas producers, reflecting a success rate of 18.8 percent. Of the failures, 49 were intended to extend productive acreage in fields under development or to discover new pools on producing structures and 5 were stratigraphic tests in areas where commercial amounts of hydrocarbons may exist. The success rate for discovering productive wells among the exploratory wells of other categories was 28.3 percent. Annual Production of Oil and Gas The 1970 production of crude oil and condensate was 177.5 million bbl - an increase of 5.5 percent over 1969. Gas production amounted to 665 Bcf an increase of 9.2 percent over 1969. Reserves At year-end 1970, Mexico's reserves of oil and gas (thermal equivalent) reached 5,768 mil-lion bbl, reflecting a decrease of 2 million bbl from the previous year. Natural Gas Pemex has also made a concerted effort for the past 20 years to meet Mexico's growing demand for natural gas. In 1970, production amounted to 665,025,000 Mcf, representing an 11 percent increase over 1969. The production of oil and gas in Mexico over the 1964-70 period is shown in Table 12. Table 12 Oil and Gas Produced in Mexico 1964-1970 Oil Gas (millions of Bbl) (trillions of Mcf)* 1964 129.5 484.9 1965 132.1 493.1 1966 135.0 529.2 1967 149.9 572.8 1968 160.4 576.8 1969 168.4 609.0 1970 177.5 665.0 * Pemex gas production only. Source: Petroleos Mexicanos. Pemex is reported to have invested approximately $400 million during 1967 for refineries, pipelines, and drilling. Actually, drilling for oil and gas is said to have repre-sented 40 percent of total funds and resulted in the discovery of 74 new gas wells. 44