The San Juan Basin is a large structural basin in the Four Corners region of northwest New Mexico and southwest Colorado. It is one of the most prolific natural gas producing basins in the United States and has been a leading coalbed methane province since the 1980s. The basin also produces oil from the Mancos Shale and other formations. The San Juan Basin's mix of conventional gas, coalbed methane, and emerging horizontal shale targets creates a diverse mineral rights market. We buy mineral rights, royalty interests, NPRI, and ORRI across the San Juan Basin.
Approximate location of the San Juan Basin shown in tan
Basin-level activity chart not yet available for the San Juan Basin. For current activity, see our rig count dashboard and the state production pages linked above.
The San Juan Basin is an asymmetric structural basin with its deepest point in the north-central area, where sediments reach over 14,000 feet in thickness. The primary productive formations include the Dakota Sandstone (Cretaceous conventional gas), the Fruitland Coal (Cretaceous coalbed methane — the largest CBM play in the US), the Pictured Cliffs Sandstone, the Mesaverde Group, and the Mancos Shale. The Mancos Shale has attracted growing interest as a horizontal drilling target, with operators testing multi-stage completions in the formation. The basin contains both conventional and unconventional reservoirs, with the Fruitland Coal CBM play being the dominant gas source for decades.
BP (now Hilcorp in many areas), ConocoPhillips, and Hilcorp Energy are among the largest operators in the San Juan Basin. WPX Energy (now Devon Energy) has been active in Mancos Shale horizontal development. Dugan Production Corporation and other mid-size independents also operate significant acreage. The basin has seen some operator consolidation and divestiture activity as majors have shifted focus to higher-return shale plays, but the remaining operators maintain active programs.
San Juan Basin mineral values are driven by the producing formation, location within the basin, and the type of production (CBM vs. conventional vs. potential horizontal). Fruitland Coal CBM minerals in the prolific "fairway" area command the highest valuations within the CBM play due to high gas rates and long well lives. Dakota gas minerals vary by well productivity. Mancos Shale horizontal development potential can add value in areas with active operators. Federal and tribal mineral ownership is significant in the basin, but fee minerals remain actively bought and sold.
Additional counties we cover within the San Juan Basin, sorted by recent oil and gas activity:
The Fruitland Coal is the largest coalbed methane play in the United States, with thousands of producing wells across the San Juan Basin. CBM wells produce natural gas that is adsorbed onto the surface of coal seams — the gas is released by pumping water from the coal to reduce reservoir pressure. Fruitland Coal wells in the prolific "fairway" area of the basin can produce at high rates for decades. The play has been commercially developed since the 1980s.
Yes. Several operators have tested horizontal wells in the Mancos Shale in recent years, with mixed but improving results. The Mancos is a thick organic-rich shale that underlies much of the basin. If horizontal development proves broadly economic, it could significantly increase the mineral value of many San Juan Basin tracts by adding a new productive formation to the existing conventional and CBM production base.
A significant portion of the mineral estate in the San Juan Basin is owned by the federal government (BLM), the State of New Mexico (State Land Office), or the Navajo Nation. These minerals cannot be purchased by private parties. However, fee (privately owned) minerals that are commingled with federal or tribal minerals in producing units can be sold. We are experienced in evaluating and purchasing fee minerals in mixed-ownership drilling units.