OXY Expands Factory-Style Development Across Multiple Delaware Basin Reservoirs
OXY USA Inc. continues to demonstrate its manufacturing approach to unconventional development in Loving County, Texas, with a drilling program that combines large multi-well pads, standardized horizontal well designs, and development of multiple stacked reservoirs within the Delaware Basin.
Analysis of the drilling permits shows 27 horizontal wells organized across nine surface pads, with development concentrated on the James West, Keg, Michelada, Blacktip, and Raymore lease areas. The project reflects a highly repeatable drilling program designed to maximize operational efficiency while systematically developing OXY’s acreage position.
A Manufacturing Development Model
Rather than isolated exploration wells, the project consists of multi-well manufacturing pads where numerous horizontal wells are drilled from a single surface location.
The largest developments include:
- James West – 7-well pad
- Keg – Two pads containing 10 wells combined
- Michelada – Two pads containing 6 wells combined
Only a handful of single-well locations remain, likely representing early-stage development, unit maintenance, or future expansion opportunities.
The drilling activity is concentrated entirely within Loving County, one of the core oil-producing counties in the Delaware Basin portion of the Permian Basin.
Surface Design Maximizes Operational Efficiency
Applying a 50-meter surface pad definition shows OXY is utilizing modern pad-drilling techniques that reduce environmental footprint while allowing multiple horizontal laterals to be drilled from centralized locations.
The project also demonstrates remarkable operational consistency:
- Horizontal drilling on every well
- Standardized pad layouts
- Repeatable well designs
- Manufacturing-style execution across adjacent sections
Where available, the drilling program is supported by Helmerich & Payne Rig 266, reinforcing the standardized nature of the operation.
Developing Multiple Reservoirs
The drilling program targets two major Delaware Basin producing intervals:
- Sandbar Field (Bone Spring)
- Phantom Field (Wolfcamp)
Projected drilling depths naturally separate into two primary development windows:
- Approximately 12,000 feet for the Bone Spring interval
- Approximately 13,000–14,000 feet for the Wolfcamp interval
This indicates OXY is systematically developing stacked reservoirs across the same acreage position rather than relying on a single producing interval.
Evidence of Stacked-Pay Development
While the permit data does not identify individual landing benches, it clearly demonstrates development of multiple productive formations within the same project area.
This approach is consistent with OXY’s broader unconventional strategy of expanding recoverable inventory through additional productive landing zones. By developing both Bone Spring and Wolfcamp intervals, OXY increases drilling opportunities while leveraging existing infrastructure and surface facilities.
The standardized drilling depths within each pad also suggest disciplined geosteering and repeatable completion designs, characteristics of a mature manufacturing program.
What the Lease Names Reveal
The lease naming convention provides additional insight into the project’s organization.
Repeated development of the James West, Keg, Michelada, Blacktip, and Raymore leases indicates long-term manufacturing development rather than isolated drilling campaigns.
The appearance of UNIT designations on several leases suggests pooled mineral interests that allow efficient development across larger drilling units. Multiple wells carrying the same lease name further illustrate OXY’s strategy of maximizing reservoir recovery through pad drilling and coordinated horizontal development.
A Blueprint for Long-Term Delaware Basin Growth
Taken together, the drilling program illustrates how OXY continues to execute a large-scale manufacturing strategy in one of North America’s premier unconventional oil basins.
Large multi-well pads, consistent horizontal drilling practices, and simultaneous development of Bone Spring and Wolfcamp reservoirs position the Loving County project as an example of disciplined unconventional resource development. While the permit data alone cannot identify individual secondary benches, the stacked-reservoir approach aligns with OXY’s stated objective of enhancing its unconventional inventory by expanding development across multiple productive intervals.
Author: phinds