During the summer of 1949, 12 core tests were drilled in the vicinity of Simpson Seep No. 2 on the east side of the Simpson peninsula. These tests were drilled in an attempt to determine the origin of the Simpson oil seeps and to evaluate the petroleum possibilities of the area. These holes failed to satisfy the objective for which they were drilled, but did define a nearly north-south linear ridge of essentially unconsolidated sand enclosed by a monotonous sequence of clay shale. A gas-bearing horizon and good oil shows were encountered on the crest of the ridge in the vicinity of Seep No. 2 during the 1949 drilling season. In November 1949 the Operating Committee approved the drilling of additional core holes in this area to resolve the complex geologic problems encountered by the shellow drilling of the previous season. Four additional tests had been completed by November 1, 1950, and a fifth is now in progress. Drilling completed thus far in 1950 has resulted in more accurate delineation of the sand ridge, and a flowing oil well has been discovered on the west edge of the ridge near Seep No. 3.
