The following blog is distilled from Enverus Intelligence® Research (EIR) reports.
As core inventory in top-tier shale plays becomes increasingly scarce and expensive, conventional upstream operators are turning their attention to the “best of the rest”—secondary basins that are quietly delivering compelling returns. These regions, often overlooked in favor of marquee names like the Permian or Marcellus, are now proving their worth with a blend of conventional legacy and unconventional potential.
At EIR, we’ve been closely tracking these emerging opportunities. Our latest analysis highlights several plays where conventional roots are giving rise to unconventional upside—offering a fresh lens for operators seeking to expand inventory without overpaying for premium acreage.
What you’ll learn from this article:
- Where conventional basins are showing unconventional upside
- How operators are unlocking value in overlooked plays like San Juan and Yeso
- Why M&A trends are shifting toward undelineated potential
- What makes these secondary basins attractive for inventory expansion
The San Juan Basin: A Dual-Window Opportunity
The San Juan Basin exemplifies this shift. Long known for its conventional production, it’s now showing unconventional promise in both oil and gas windows. On the oil side, nearly 100 horizontal wells drilled by Enduring Resources and DJR Operating since 2022 are delivering recoveries on par with the Williston and Midland basins—averaging 47 Mbbl/1,000’, but at shallower depths (~5,000 ft), translating to lower development costs. Notably, DJR’s Carson 615H well, a step-out 15 miles from the core, posted a projected EUR of over 150 Mbbl/1,000’.
Meanwhile, LOGOS Resources II is unlocking prolific gas volumes from the Mancos Formation, with average recoveries of 1.4 Bcf/1,000’ and breakevens below $2/Mcf. This dual-window potential makes the San Juan a standout for operators seeking flexibility in commodity exposure.
Louisiana Austin Chalk: High Risk, High Reward
The Louisiana Austin Chalk continues to deliver some of the most variable results in the Gulf Coast. Navidad Operating leads with 77 Mbbl/1,000’ since 2022, while GeoSouthern’s Sundance 1H gas well posted an impressive 2.4 Bcf/1,000’. However, water-to-oil ratios as high as 17 and breakevens ranging from sub-$40 to over $100/bbl underscore the importance of precise geologic targeting. For operators with the technical chops, the upside is significant.
Cotton Valley and Cherokee: Conventional Foundations, Unconventional Futures
In East Texas, the Cotton Valley Lime is seeing renewed interest. Rose City Resources and Barrow-Shaver Resources are delivering oil EURs of 55 and 45 Mbbl/1,000’, respectively. While drilling remains operationally intensive, averaging 48 days per well, the returns are drawing attention.
Similarly, the Cherokee Shale in the Western Anadarko is attracting leasing and drilling activity. Mewbourne Oil has led the charge with ~50 wells since 2022, averaging 30 Mbbl/1,000’ and $48/bbl breakevens. SD’s recent $144 million acquisition in the area signals growing confidence in the play’s potential.
Yeso, San Miguel, and the Eastern Shelf: Inventory With Nuance
In the Permian’s fringe zones, horizontal development is gaining traction. Spur Energy’s Yeso wells are averaging 58 Mbbl/1,000’, with inventory often found in lightly developed or vertical-free sections. The San Miguel, while more isolated, offers consistent high-$40/bbl breakevens and more than 100 remaining locations within a 1-mile buffer of proven wells.
On the Eastern Shelf, Wolfcamp D development has slowed, but private operators like Cholla Petroleum and Moriah Operating are still achieving EURs above 40 Mbbl/1,000’. These areas may not support large-scale development, but they offer meaningful bolt-on potential for the right operator.
Strategic Implications for Conventional Operators
What ties these plays together is their hybrid nature: conventional basins now yielding unconventional results. For conventional operators, this presents a unique opportunity to leverage existing regional knowledge, infrastructure and relationships in pursuit of new upside.
Moreover, as M&A trends from the last few years show—such as SM and NOG’s $2.55 billion acquisition of XCL Resources in the Uinta—buyers are increasingly willing to pay for undelineated potential. For smaller and mid-cap operators, this opens the door to creative deal-making and strategic positioning in plays that are just beginning to show their full potential.
Looking to expand your footprint without overpaying for core acreage?
Enverus helps conventional operators stay ahead of market shifts by consolidating fragmented data, surfacing overlooked opportunities, and accelerating confident decision-making. Whether you’re evaluating emerging plays or planning long-term development, our platform equips you to act faster, smarter and with greater clarity. Fill out the form below and speak with an expert.
About Enverus Intelligence®| Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations, and macro-economic forecasts and helps make intelligent connections for energy industry participants, service companies, and capital providers worldwide. See additional disclosures here.
