Sabalo II Operating, LLC continues to expand its footprint in the Permian Basin with the development of the UL Bellagio Lease in Andrews County, Texas. The project provides a clear example of the manufacturing-style development model increasingly used by operators across the Spraberry and Wolfcamp plays, combining pad drilling, centralized infrastructure, and coordinated reservoir development.
Headquartered in Corpus Christi, Texas, Sabalo II Operating is a privately held exploration and production company focused on developing oil and natural gas assets throughout the Permian Basin. The company remains an active buyer of drilling, completions, production, construction, environmental, and field services as it grows its operations in West Texas.
Single Pad Development Strategy
Analysis of the well permits shows that all four wells on the UL Bellagio lease originate from a single surface location within Block 3, Section 3 of Andrews County.
Surface Pad Summary
| Pad ID | County | Block | Section | Lease | Wells | Contractor & Rig |
|---|---|---|---|---|---|---|
| PAD-001 | Andrews | 3 | 3 | UL BELLAGIO 39-27 | 4 | AKITA 803 |
The development consists of four horizontal wells drilled from a centralized surface pad, a hallmark of modern Permian Basin factory-style development.
The use of a single drilling rig for all four wells further highlights the operational efficiency of the program.
Contractor and Rig Activity
| Contractor & Rig | Well Count |
|---|---|
| AKITA 803 | 4 |
Licensing and Drilling Cadence
The permitting and drilling timeline reveals a highly coordinated development plan.
Licensing Activity
| Pad ID | First License Date | Last License Date | Days Between |
|---|---|---|---|
| PAD-001 | 09/26/2025 | 09/26/2025 | 0 |
All four wells were licensed simultaneously, suggesting the wells were planned as a single development project rather than a series of independent drilling opportunities.
Drilling Activity
| Pad ID | Wells | First Activity Date | Last Activity Date | Activity Span (Days) |
|---|---|---|---|---|
| PAD-001 | 4 | 10/15/2025 | 12/07/2025 | 53 |
The drilling program began less than three weeks after licensing and was completed over a 53-day period. Activity occurred at an average interval of approximately 17.7 days between drilling events, indicating a steady execution pace.
Subsurface Development Profile
The wells are located within the SPRABERRY (TREND AREA) Primary Field, one of the most productive unconventional oil developments in the Permian Basin.
Projected Depth Analysis
| Pad ID | Wells | Min Depth (ft) | Max Depth (ft) | Average Depth (ft) | Total Planned Footage (ft) |
|---|---|---|---|---|---|
| PAD-001 | 4 | 9,600 | 9,900 | 9,750 | 39,000 |
Depth Distribution
| Projected Depth | Wells |
|---|---|
| 9,600 ft | 2 |
| 9,900 ft | 2 |
The narrow 300-foot depth spread suggests the wells are targeting closely related reservoir intervals within the same stratigraphic package. This pattern is consistent with modern co-development strategies where operators simultaneously develop multiple benches within the Spraberry or Wolfcamp formations.
Potential explanations include:
- Multiple landing zones within the same development unit
- Stacked-pay development
- Geosteering adjustments across laterals
- Optimized reservoir spacing design
Transition from Drilling to Production Infrastructure
Following completion of drilling operations, Sabalo advanced the project toward long-term production by securing an air permit for the Bellagio Central Tank Battery (CTB).
Bellagio CTB Permit Summary
| Field | Value |
|---|---|
| Project Number | 410963 |
| Project Technical Name | BELLAGIO CTB |
| Permit Number | 184360 |
| Permit Type | Standard Permit (STDPMT) |
| County | Andrews County |
| Status | Issued |
| Received Date | 06/12/2026 |
| Complete Date | 06/12/2026 |
| Renewal Date | 06/12/2036 |
The permit was processed and completed on the same day it was received, indicating the facility qualified under Texas’ standard permitting framework for oil and gas production facilities.
Project Development Timeline
The timeline illustrates the progression from permitting to drilling and ultimately production infrastructure.
Event Date First Well Licensed 09/26/2025 First Well Activity 10/15/2025 Last Well Activity 12/07/2025 Bellagio CTB Permit Received 06/12/2026 Bellagio CTB Permit Issued 06/12/2026
Development Cadence
| Metric | Days |
|---|---|
| First License → CTB Permit | 259 |
| First Activity → CTB Permit | 240 |
| Last Activity → CTB Permit | 187 |
This cadence suggests a deliberate development sequence:
- License the full drilling program.
- Drill the wells from a centralized pad.
- Complete and evaluate the wells.
- Build permanent production infrastructure.
- Transition the asset into long-term production operations.
What This Means for Oilfield Service Companies
The UL Bellagio development demonstrates the type of project that generates opportunities across multiple service categories.
Potential supplier opportunities include:
- Drilling services
- Directional drilling and geosteering
- Mud and solids control
- Cementing
- Pressure pumping
- Wireline
- Production equipment
- Tank battery construction
- Environmental services
- Emissions monitoring
- Automation and instrumentation
- Production chemicals
- Compression and artificial lift
The Bellagio CTB permit also signals ongoing facility and production-related activity beyond the initial drilling campaign.
Project Outlook
The UL Bellagio lease represents a textbook example of modern Permian Basin development. Sabalo II Operating utilized a single-pad, four-well drilling program supported by centralized infrastructure and a structured development timeline. The consistent well depths, common surface location, and coordinated permitting activity suggest a manufacturing-style approach designed to maximize operational efficiency while developing stacked reservoir targets within the Spraberry trend.
As Sabalo continues expanding its Andrews County position, similar multi-well pad developments and associated facility projects are likely to create additional opportunities for oilfield service providers throughout the Permian Basin.
Author: phinds