On the basis of stratigraphic similarity to the Permian basin of western Texas and southeastern New Mexico, the Paleozoic rocks of the Pedregosa basin, southwestern New Mexico, southeastern Arizona, and northern Mexico could yield large quantities of oil and gas. In addition, significant quantities of oil and gas may be produced from the Mesozoic rocks of the Pedregosa area. Because of the potential, this area, as well as the Orogrande basin of south-central New Mexico, deserves continued exploration.

In the Pedregosa basin, major reservoir objectives include the Ordovician El Paso (= Ellenburger) and Montoya carbonate rocks, Silurian Fusselman dolomites, Pennsylvanian to Permian shelf and reef carbonate rocks and basin-fill sandstones, and Lower Cretaceous shelf limestones and sandstones. Important source units of petroleum include the Devonian Percha (= Woodford) shales, Mississippian to Permian basin limestones and shales, Jurassic shales, and Lower Cretaceous limestones.

In contrast to the Permian basin, the Pedregosa area lies within the structurally complex Basin and Range province and has been subjected to intense tectonism and igneous activity from Laramide time onward. Around the few plutonic intrusive masses the sedimentary section has been metamorphosed, but most zones of alteration extend less than a few feet around the hypabyssal intrusive masses (volcanic necks, dikes, and sills). In spite of the local igneous activity and tectonism, large quantities of petroleum, which probably were generated and collected prior to Laramide time, should be preserved in the Pedregosa basin.