Lower Permian (Wolfcampian) strata of the Palo Duro basin consist of thick, terrigenous clastic and carbonate facies which were deposited in (1) fan-delta, (2) high-constructional delta, (3) carbonate-shelf and shelf-margin, and (4) slope and basinal systems. Lateral and vertical facies sequences across the basin indicate that these strata are regressive deposits and they document the first episodes of Permian marine retreat from the Texas Panhandle.

Terrigenous clastic sediment was derived from highlands which surrounded part of the Palo Duro basin. Exposed Precambrian granite in the Amarillo uplift, Sierra Grande uplift, and Bravo dome yielded large quantities of arkosic sand (granite wash) to fan-delta systems which emptied into shallow-marine environments in the northern part of the basin. Along the basin's southeastern margin, high-constructive deltas prograded westward from the Wichita Mountains, depositing quartz-rich sand and mud across the shelf.

Seaward of the clastic facies belt, a carbonate-shelf-margin complex, averaging 1,000 to 1,200 ft (300 to 365 m) in thickness and facing south toward the Midland basin, dominated Wolfcampian deposition in the Palo Duro basin. The western shelf margin consists of a superposed sequence of carbonate strata exhibiting limited basinward progradation. Contrarily, the eastern shelf margin is composed of several superposed, progradational carbonate sequences, individually averaging several hundred feet in thickness. During early to middle Wolfcampian time, the eastern shelf margin prograded westward 10 to 30 mi (16 to 48 m) while the western margin remained stationary. Shelf margins shifted in response to deposition of slope sediments in front of the shelf and in feeder channels, creating a f undation for subsequent carbonate buildups.

Potential hydrocarbon reservoirs are thick zones of shelf-margin dolomites, delta-front sandstones, and fan-delta arkoses. Porosity figures in those facies are as high as 10 to 20%. Each potential reservoir facies is juxtaposed with potential source beds and nonporous sealing beds.

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