The Permian Basin is no longer being developed well-by-well.
It’s being developed section-by-section, block-by-block, and zone-by-zone.
To understand what that actually looks like, we can break down a real Midland Basin program in Section 36 (Block 37T3S, Abstract 1034)—and connect it directly to what Diamondback is building across the basin.
The Surface Reality: One Section, Full Development
All 27 permits in this dataset are located in:
Attribute Value County Midland Basin Permian – Midland Basin Block 37T3S Abstract 1034 Section 36 Total Permits 27
👉 Key Insight:
This is not acreage being tested.
This is a fully committed development unit inside a single section.
Pad-Level Surface Development
Permits by Pad
| Pad | Permit Count | Contractor / Rig |
|---|---|---|
| Pad_1 | 2 | Precision 553 |
| Pad_2 | 1 | Precision 553 |
| Pad_3 | 7 | Precision 553 |
| Pad_4 | 7 | Latshaw 9 |
| Pad_5 | 4 | Ensign 773 |
| Pad_6 | 6 | Ensign T140 |
What This Tells Us Immediately
- Multiple rigs operating within the same section
- Pads scaling from 1 → 7 wells
- Clear progression from small → core → large pads
👉 This is development sequencing, not random drilling
Lease-Level Structure: One Area, Multiple Lease Strings
Lease Distribution by Pad
| Pad | Primary Lease Names |
|---|---|
| Pad_1 | Marion West A 36-25, Marion West D 36-25 |
| Pad_2 | Marion East I 36-25 |
| Pad_3 | Marion East N, M, O 36-25 |
| Pad_4 | Marion East K, I, J 36-25 |
| Pad_5 | Marion West G, F, H 36-25 |
| Pad_6 | Marion West B, A, D, E, F 36-25 |
Critical Surface Insight
👉 “Marion East” vs “Marion West” is not separate acreage
It is:
One continuous development area subdivided into lease naming structures
This is exactly how large operators:
- Manage ownership boundaries
- While still executing block-scale development
Subsurface Reality: Stacked Pay Development
Now layer in the subsurface data.
Depth Programs by Pad
| Pad Group | Depth | Interpretation |
|---|---|---|
| Pads 1–4 | ~10,605 ft | Primary Spraberry development |
| Pads 5–6 | ~12,500 ft | Secondary deeper zone (Wolfcamp / lower Spraberry) |
What This Means
👉 This is not a single-zone program
This is:
Multi-zone co-development inside the same section
Drilling Characteristics
| Attribute | Value |
|---|---|
| Well Type | Oil or Gas |
| Drilling Method | 100% Horizontal |
| Depth Variability | Zero within pads |
Critical Subsurface Insight
- No depth variation → pre-engineered wells
- No vertical wells → no exploration
- Multiple depths → stacked reservoir exploitation
👉 This is a manufacturing system
Putting It Together: Full Section Development Model
Surface + Subsurface Integration
| Layer | What’s Happening |
|---|---|
| Surface | Multi-pad development across Section 36 |
| Lease | Marion East + West unified program |
| Drilling | Multi-rig, coordinated execution |
| Subsurface | Two depth programs (stacked zones) |
| Strategy | Co-development |
Final Classification
✅ Full Section Block Development
✅ Stacked Pay Co-Development
✅ Factory-Style Drilling Program
Why This Looks Exactly Like Diamondback’s Strategy
Diamondback has been signaling a very specific direction:
Diamondback Focus Evidence in This Program Contiguous acreage Entire Section 36 Capital efficiency Multi-well pads Inventory depth Multiple zones Repeatability Identical depths + rigs Scale 27 wells in one section
The Real Strategy Shift
Old model:
Drill the best wells
New model:
Fully develop the best sections
The Hidden Signal: This Is Repeatable
This is the most important takeaway for your audience:
👉 This program is not isolated
It implies:
- Adjacent sections will follow
- Same pad patterns will repeat
- Same contractors will return
- Same depth programs will be executed
Commercial Insight: Where the Opportunity Is
This operator is:
- Running a repeatable system
- Not experimenting
- Scaling a proven model
High-Value Target Areas
| Opportunity | Why It Matters |
|---|---|
| Adjacent sections | Next block development |
| Pad replication | Same design reused |
| Multi-zone completions | Increased complexity |
| Infrastructure | Centralized systems |
| Automation & efficiency | High repeatability |
Final Thought: This Is the Permian Playbook Now
This single section tells you everything:
- One section
- Multiple pads
- Multiple leases
- Multiple zones
- Multiple rigs
- Zero variability
👉 That is not drilling
👉 That is manufacturing
Closing Insight
If you’re selling into this market:
You’re not selling into wells anymore
You’re selling into systems
And companies like Diamondback are building those systems:
- Section by section
- Block by block
- Basin wide
Author: phinds
