Discovery Operating, Inc. has permitted a new seven-well horizontal development on the AF A / AF lease in Section 34, Block 41T4S, Upton County, Texas, marking the start of another manufacturing-style drilling program in the Midland Basin. The privately held Midland-based operator continues its long-term Permian development strategy by concentrating multiple wells on a single surface location to maximize drilling efficiency and reservoir recovery.
The June 2026 permit dataset identifies one surface pad containing seven horizontal oil wells, all targeting the Spraberry (Trend Area) Primary Field. Planned measured depths range from 10,500 to 11,500 feet, averaging 10,786 feet, with a combined planned drilling footage of approximately 75,500 feet. The narrow depth range suggests a highly standardized drilling campaign where each well is designed using a repeatable completion program.
The use of two lease names—AF A and AF—on the same pad likely reflects mineral ownership or lease boundary distinctions rather than separate drilling programs. It is common for a single multi-well pad to host laterals that traverse different lease tracts while sharing the same surface infrastructure, reducing development costs and minimizing surface disturbance.
From a subsurface perspective, the project exhibits the characteristics of a modern co-development program. All wells are located within the same section, target the same producing field, are planned as horizontal oil wells, and have nearly identical projected depths. This strongly suggests Discovery is developing closely spaced landing zones or multiple benches within the Spraberry interval from a single pad to improve reservoir contact and optimize long-term recovery.
The consistent well design also indicates a manufacturing-style approach where drilling and completion parameters can be standardized across the pad. Programs like this often allow operators to optimize lateral placement, reduce cycle times, improve frac efficiency, and simplify logistics while lowering development costs.
With more than five decades of operating experience and hundreds of wells across the Permian Basin, Discovery Operating continues to pursue disciplined, long-term development rather than rapid expansion. The new AF A / AF pad reinforces that strategy by adding another concentrated horizontal development designed to efficiently unlock additional value from one of the Midland Basin’s most prolific oil reservoirs.
Discovery Operating, Inc. – Company Overview
Discovery Operating, Inc. is a privately held, family-owned independent exploration and production (E&P) company headquartered in Midland, Texas. Founded in 1973 by Don Sparks, the company has spent more than five decades developing conventional and unconventional oil and gas assets across the Permian Basin and surrounding regions.
Company Snapshot
- Headquarters: Midland, Texas
- Founded: 1973
- Type: Private, independent E&P company
- Primary Operating Areas: Texas, New Mexico and Oklahoma
- Core Focus: Oil and natural gas exploration, drilling, development and production, with a strong emphasis on the Permian Basin.
Well Count & Operations
Discovery Operating has:
- Approximately 700+ operated wells across its operating areas according to industry well databases.
- Approximately 258 currently producing wells reported in aggregated production datasets across multiple states.
- More than 360 actively producing wells in Texas alone, according to Texas production records.
Production Profile
Current estimated production includes:
- ~17,500 BOPD (barrels of oil per day)
- ~47 MMcf/d of natural gas
- Production from assets in Texas, New Mexico and Oklahoma.
Operating Strategy
Discovery Operating has built a reputation for:
- Long-term development of mature Permian Basin assets.
- Combining conventional reservoir expertise with horizontal development in the Spraberry and other Permian formations.
- Maintaining a disciplined, privately owned operating model focused on steady production growth rather than rapid expansion.
Key Basins
The company’s drilling activity is concentrated in the:
- Midland Basin
- Permian Basin
- Selected legacy conventional fields throughout West Texas.
Market Position
While Discovery Operating is considerably smaller than publicly traded Permian operators such as Diamondback, Permian Resources or Occidental, it is recognized as an established private operator with a long operating history and an active drilling program in West Texas. Its privately held ownership allows it to pursue multi-year development projects with a disciplined capital allocation strategy.
Author: phinds
