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San Juan Basin

Location: Colorado

The San Juan Basin is a drainage basin and geologic structural basin in the Four Corners region of the Southwestern United States. Since the 1980s, the basin has been one of the major US sources of coalbed methane natural gas production. Palo has an interest in 40 wells covering over 10,000 acres. Palo sold a majority of its operations in the Picnic Flats coalbed methane field to Amoco Production Company but retained a non-operating interest in this project. The Picnic Flats Field has several of the largest grossing wells in the San Juan Basin with some wells projected to ultimately recover in excess of 10 Bcfs from 3500 feet. In addition to its interest in the Picnic Flats Field, Palo and its partners are actively developing Palo's Bondad coalbed methane project which is operated by ConocoPhillips.