rises on one side to the Rockies; on the other to the Omineca-Parsnip Mountain watershed. F. W. Valleau in 1897 reported finding drift- lignite on Omineca River, 10 miles up. OIL POSSIBILITIES. That part of the Province lying east of the main range of the Rocky Mountains and extending northward from about the 54th parallel has for some years been looked upon as a promising field for the discovery of commercial bodies of oil. The Lower Cretaceous strata of Southern Alberta, in which are found coal and some oil and oil-seepages, have their equivalent in the rolling plains bordering the foot-hills in the Peace River region, and it is to this region that, during the last two or three years, the Government of the Province has been devoting attention by way of geological study and latterly by diamond-drilling. The area in question, including 78,729 square miles, has been reserved from application and alienation while the effort to locate and study the geological formations with a view of determining the existence of suitable structure has been in progress. Field examinations on behalf of the Department of Lands were made in the summer of 1919 by the late J. C. Gwillim, Professor of Mining at Queen’s University, and in 1920 by John A. Dresser, Consulting Mining Engineer, of Montreal, and Edmund M. Spieker, Geologist, of Baltimore, Md. Following the 1920 investigations, diamond-drill equipment was sent to a selected part of the district covered and exploratory drilling has since been carried on. Surface exposures of rock are infrequent over considerable areas of the country, and their correlation is made easier and more certain by the positive results of drilling, while the presence of domes or anticlinal structures favourable to the retention of petroleum may be determined. Professor Gwillim expressed the opinion that there is possibility of oil existing below some of the favourable structures—most likely beneath the St. John shales, which are impervious enough to hold down oil. The Bullhead sandstones lying below the shales are geologically more or less contemporaneous with or equivalent to the oil-bearing Loon River strata and the Athabaska tar-sands, occurring farther eastward. They also resemble the Kootenay formation of Southern Alberta of much the same horizon, which is believed to be the oil-carrier at Black Diamond field. He considered the Bullhead sandstones as structurally favourable and believed it to be possible, considering the activity of the Imperial Oil Company, that somewhere within the great extent of these Alberta and British Columbia foot-hills an oil discovery of commercial value might be made. It was on the recommendation of Professor Gwillim that the studies of this area have been continued. Mr. Dresser examined the area north of Peace River, west of the Peace River Block, and south of Graham River. He also concluded Eight.