SAXUM OPCO LLC has begun drilling its first tracked development project since 2017, a 4-well horizontal pad in Martin County, Texas targeting the Spraberry Trend in the Midland Basin. The project was licensed as a coordinated batch development on May 18, 2026, with Precision Rig 567 currently drilling the first well while three additional wells remain permitted for future execution
Oil prices fell to their lowest levels since March after the U.S. and Iran reached an interim ceasefire agreement that is expected to restore oil flows through the Strait of Hormuz and ease sanctions on Iran. Brent crude dropped to $77.96 per barrel as markets reacted to the prospect of increased global oil supply and reduced geopolitical risk.
TISCHER ENERGY, LLC is a privately held Texas oil and gas operator focused on the East Texas Basin and Eastern Shelf Permian Basin, with recent drilling activity in Upshur, Irion, and Tom Green Counties. The company drilled three wells in the report, targeting the Gilmer Field in East Texas and Pennsylvanian-age reservoirs on the Eastern Shelf, indicating a strategy centered on conventional development and selective exploration opportunities.
Continental Resources is advancing a modern Wolfcamp co-development program in Pecos County, Texas, with 13 horizontal wells planned from three surface pads within the PECAN STATE UNIT, all targeting a consistent depth of approximately 11,761 feet. The scale, pad density, and standardized well design indicate a manufacturing-style development project that is expected to generate sustained demand for drilling, completions, production, facilities, and midstream service providers across the Delaware Basin.
Sabalo II Operating’s UL Bellagio development in Andrews County, Texas, is a four-well, single-pad project in the Spraberry Trend that demonstrates a modern factory-style drilling approach using AKITA Rig 803 and centralized production infrastructure. The project progressed from licensing and drilling in late 2025 to the permitting of the Bellagio Central Tank Battery (CTB) in June 2026, highlighting a structured development cadence and potential co-development of multiple reservoir intervals.
The operators receiving their first approved permits of 2026 are primarily small independent companies focused on mature conventional oil and gas assets across Texas, Louisiana, Kansas, Kentucky, and East Texas, rather than large-scale shale development. Notable exceptions include JAYD Ventures, which is pursuing helium exploration in Arizona’s Holbrook Basin, and Sage Potash, which is advancing a potash development project in Utah’s Paradox Basin, highlighting growing interest in alternative resource opportunities beyond traditional oil and gas.
Oil prices fell to a three-month low after reports of a U.S.-Iran peace agreement and the planned reopening of the Strait of Hormuz eased concerns about global supply disruptions. Despite the positive developments, tanker operators remain cautious, warning that shipping traffic may take weeks to normalize until safety risks and navigation concerns in the region are fully addressed.
Comstock Resources sold a 27% stake in its midstream subsidiary, Pinnacle Gas Services, to Sixth Street for $600 million, valuing the business at approximately $2.2 billion while allowing Comstock to retain operational control. The transaction strengthens Comstock’s balance sheet, eliminates Pinnacle’s debt and preferred equity, and highlights growing confidence in the Western Haynesville’s ability to supply natural gas for LNG exports, power generation, and data center demand.
ExxonMobil is reportedly evaluating a potential acquisition of Woodside Energy to expand its LNG business and strengthen its position in key Asian markets, reflecting growing confidence in long-term global natural gas demand. For U.S. shale, the move would support future drilling activity by increasing LNG export capacity, creating stronger demand for natural gas from the Permian, Haynesville, and Appalachian basins while benefiting producers, midstream companies, and oilfield service providers.
The reopening of the Strait of Hormuz is unlikely to trigger a major U.S. shale drilling surge, as operators remain focused on capital discipline and shareholder returns rather than chasing short-term oil price movements. Oilfield service companies should prepare for a highly competitive market where efficiency, technology, and cost-saving solutions matter more than production growth.
