A Nine-Year Evolution of Development in Block 39T1N
Since 2017, Diamondback Energy has steadily expanded its drilling footprint across Block 39T1N in Midland County, Texas. Located within the heart of the Midland Basin and the prolific Spraberry Trend Area, the block has evolved from scattered development activity into a concentrated manufacturing-style drilling program.
Over the period, Diamondback secured approximately 99 well permits across seven sections of the block, including Sections 1, 4, 8, 17, 20, 24, and 32. While activity was initially distributed among multiple sections, permit activity gradually became concentrated in fewer development areas as the company refined its understanding of reservoir quality and optimized its drilling inventory.
Block 39T1N Development Summary
| Metric | Value |
|---|---|
| Total Permits Since 2017 | 99 |
| Unique Sections Developed | 7 |
| Primary Field | Spraberry (Trend Area) |
| Most Active Section | Section 32 |
| Second Most Active Section | Section 24 |
Permit Activity by Section
| Section | Permit Count |
|---|---|
| 32 | 28 |
| 24 | 19 |
| 4 | 12 |
| 1 | 11 |
| 8 | 11 |
| 17 | 10 |
| 20 | 8 |
Section 32 emerged as the most active area within the block, accounting for more than one-quarter of all permits issued since 2017.
Drilling Contractors and Rigs Used (Last 24 Months)
| Rig | Contractor | Permit Count |
|---|---|---|
| NorAm 30 | NorAm | 7 |
| Latshaw 19 | Latshaw | 6 |
| Ensign 777 | Ensign | 5 |
| Ensign T138 | Ensign | 3 |
| Independence 306 | Independence | 2 |
| Ensign 773 | Ensign | 2 |
| Unassigned | N/A | 5 |
The use of multiple high-specification drilling rigs demonstrates the scale and importance of the development program within Diamondback’s Midland Basin portfolio.
Section 32: The Largest Full-Section Development Project in Block 39T1N
Among all development activity within Block 39T1N, Section 32 stands out as the largest coordinated drilling project undertaken by Diamondback since 2017.
The section contains 28 permitted horizontal wells distributed across four multi-well drilling pads. All permits are located within a single Midland County section and are associated with the Spraberry Trend Area field. The wells are concentrated across two lease positions, AUTRY 32-8 and AUTRY 5-8, creating what appears to be a full-section development strategy rather than isolated lease-by-lease drilling.
Using surface location analysis, the permits cluster into four distinct drilling pads. Each pad contains between six and nine horizontal wells, indicating a standardized development template designed to efficiently exploit multiple reservoir targets within the section.
Section 32 Development Snapshot
| Metric | Value |
|---|---|
| Permits | 28 |
| Well Pads | 4 |
| Leases | 2 |
| County | Midland |
| Field | Spraberry Trend Area |
| Average Projected Depth | 10,598 ft |
| Planned Drilled Feet | 296,750 ft |
Well Pad Summary
| Pad | Lease | Permit Count |
|---|---|---|
| Pad 1 | AUTRY 32-8 | 9 |
| Pad 2 | AUTRY 5-8 | 7 |
| Pad 3 | AUTRY 5-8 | 6 |
| Pad 4 | AUTRY 32-8 | 6 |
Licensing Timeline
| Pad | First License Date | Last License Date | Days Between |
|---|---|---|---|
| Pad 1 | Apr 21, 2026 | Apr 22, 2026 | 1 |
| Pad 2 | Apr 13, 2026 | Apr 20, 2026 | 7 |
| Pad 3 | Apr 21, 2026 | Apr 22, 2026 | 1 |
| Pad 4 | Apr 13, 2026 | Apr 28, 2026 | 15 |
The permit timing suggests the four pads were engineered as part of a coordinated development campaign rather than a series of isolated drilling decisions.
Projected Depth Analysis
| Depth | Permit Count |
|---|---|
| 9,750 ft | 9 |
| 11,000 ft | 19 |
The consistency of projected depths suggests Diamondback is targeting a limited number of reservoir intervals with a highly repeatable development template.
The Technology Behind Modern Full-Section Development
Projects like Section 32 would not have been possible a decade ago.
Today’s Midland Basin operators rely on a combination of horizontal drilling, advanced geosteering, real-time drilling analytics, pad drilling, multi-well completion designs, and integrated subsurface modeling to develop large acreage positions efficiently.
A four-pad, 28-well development program creates demand far beyond drilling services. Operators executing projects of this scale require directional drilling, geosteering, drilling fluids, solids control, cementing, pressure pumping, wireline, production chemicals, automation, logistics, water management, fuel supply, emissions monitoring, and numerous other support services.
Technologies Enabling Scale
| Technology | Business Impact |
|---|---|
| Horizontal Drilling | Maximizes reservoir contact |
| Geosteering | Keeps wells in target zones |
| MWD/LWD Systems | Real-time formation evaluation |
| Multi-Well Pad Drilling | Reduces move time and cost |
| Digital Drilling Reporting | Improves execution visibility |
| AI-Based Well Planning | Improves consistency and repeatability |
| Integrated Reservoir Models | Optimizes spacing and landing zones |
The result is a manufacturing-style development model where dozens of wells can be planned, drilled, completed, and brought online with a level of precision previously unavailable to operators.
What This Means for Sales Professionals
For oilfield service companies, projects like Section 32 provide valuable insight into how buying decisions are made.
Potential Service Demand Created by a 28-Well Program
| Service Category | Opportunity |
|---|---|
| Directional Drilling | High |
| MWD/LWD | High |
| Drilling Fluids | High |
| Solids Control | High |
| Cementing | High |
| Pressure Pumping | High |
| Wireline | High |
| Water Management | High |
| Fuel & Logistics | High |
| Production Chemicals | Medium-High |
| Automation & Monitoring | Medium-High |
Why This Matters to Sales
| Signal | What It Means |
|---|---|
| 28 Permits | Multi-year activity potential |
| 4 Well Pads | Concentrated field execution |
| Multiple Rigs | Multiple contractor relationships |
| Standardized Design | Repeatable purchasing patterns |
| Full Section Development | Larger budgets and infrastructure spend |
For sales teams, the lesson is simple: permits are often the earliest indicator of future spending. Companies that identify full-section development projects early can align with operators, drilling contractors, and service providers before the majority of procurement decisions are made.
Author: phinds
