San Juan Mancos shale unconventional play

The San Juan Mancos shale play is an emerging unconventional resource in the San Juan Basin, spanning parts of New Mexico and Colorado. The play is characterized by a gas-rich northern area and an oil-rich southern area, offering operators flexibility to shift between targets as market conditions change. The Mancos Formation, deposited during the Upper Cretaceous period, consists of marine shales interbedded with fine-grained sandstones and siltstones. Development began in 2010 with WPX Energy's first wells, gaining renewed attention in 2017 with BP's successful NEBU well. Since then, nimble private operators like Enduring Resources, DJR Operating, and Logos Operating have taken the lead in developing this resource. The play demonstrates strong economic potential, with breakeven oil prices ranging from $40 to $50 per barrel in the southern oil window and breakeven gas prices between $2 and $3 per thousand cubic feet in the northern gas window.