Diamondback Energy is one of the most disciplined operators in the Midland Basin, focused on repeatable, capital-efficient horizontal development across core acreage. The MERCHANT EAST program in Reagan County illustrates how modern Permian operators execute full-stack projects using a structured factory workflow — from permitting to drilling, completions, and centralized production infrastructure.
📍 Surface Persona – Structured Pad Development in Reagan County
Play: Permian Basin – Midland Sub-Basin
County: Reagan County, Texas
Total Wells: 12
All permits and wells are concentrated in Reagan County within two adjacent survey sections:
- Block A – Abstract 240 – Section 22 (6 wells)
- Block A – Abstract 251 – Section 14 (6 wells)
Lease naming patterns (MERCHANT ESTATE EAST I, K, M, O across 16-23 and 17-8 designations) confirm coordinated development across contiguous acreage positions.
Two drilling rigs were deployed:
- Latshaw 19 – 5 wells
- Latshaw 9 – 5 wells
This balanced rig utilization reflects structured multi-well pad development — not exploratory drilling.
Surface Persona (Summary):
This is a Midland Basin factory-style pad program concentrated across two contiguous sections in Reagan County, executed with dual rigs and disciplined acreage alignment. The development reflects repeatable manufacturing-style drilling rather than opportunistic leasing activity.
🔬 Sub-Surface Persona – Standardized Spraberry Targeting
Primary Field: SPRABERRY (TREND AREA)
Well Type: Horizontal production wells
Total Wells: 12
Projected depth profile:
- Min Depth: 10,605 ft
- Max Depth: 10,605 ft
- Average Depth: 10,605 ft
- Total Feet Drilled: 127,260 ft
Every well targets the same vertical depth, confirming standardized landing zones within the Spraberry trend.
Sub-Surface Persona (Summary):
Diamondback executed a uniform horizontal Spraberry development targeting a consistent 10,605 ft landing depth across two adjacent sections. The identical depth profile and multi-well sequencing indicate systematic co-development and high operational repeatability.
⏱ Project Cadence – From Permit to Production Facility
The MERCHANT EAST CTB facility air permit (Project #404742) anchors the final stage of the workflow, tied to the completion phase and transition to production.
📊 Full Development Timeline
| Phase | Date | Days from Prior Phase |
|---|---|---|
| First Licence Date (Project Start) | 05/14/2025 | – |
| First Spud (Rig Introduced) | 08/09/2025 | 87 days |
| Last Spud | 12/16/2025 | 129-day drilling window |
| Facility Air Permit Received | 02/09/2026 | 55 days |
Total Cycle Time:
May 14, 2025 → February 9, 2026 = 271 days
Approximately nine months from regulatory initiation to full facility authorization.
🏭 The Factory Workflow in Action
This project reflects a textbook Permian factory model:
- Permit Phase – Surface & sub-surface regulatory positioning
- Rig Mobilization – Dual-rig batch drilling (avg. ~11.7 days between spuds)
- Completion Phase – Likely late December through January
- Facility Authorization (CTB) – Air permit approval tied to production readiness
- Production Mode – Centralized infrastructure online
There were no undrilled wells remaining, indicating capital discipline and execution alignment.
Strategic Takeaway
The MERCHANT EAST program demonstrates how Diamondback applies standardized, section-scale development in the Spraberry trend using repeatable drilling cadence and centralized infrastructure planning. The consistent landing depth, dual-rig deployment, and tight permit-to-production sequencing confirm a mature manufacturing-style approach that defines modern Midland Basin development.
