XTO Energy’s Neal Lease development in Upton County, Texas, provides a strong example of how Permian Basin operators are moving beyond individual well or pad development toward coordinated full-section factory drilling.
Permit and surface-location analysis identifies nine horizontal wells distributed across two distinct drilling pads within Section 9, Block Y, Abstract 188. The wells are tightly coordinated by location, permit timing, lease naming and projected depth, pointing to a planned multi-pad, multi-depth development program targeting the broader Spraberry Trend Area of the Midland Basin.
Two Pads, Nine Wells, One Development Program
Using a 50-metre surface-location clustering methodology, the Neal wells separate into two physical pads:
- PAD-001: 4 horizontal wells — NEAL 9A through 9D
- PAD-002: 5 horizontal wells — NEAL 9E through 9I
- Total: 9 wells across 2 pads
The development pattern becomes even clearer when the wells are viewed at the section level.
All nine wells share Section 9, Block Y and Abstract 188, while the lease names progress sequentially from NEAL 9A through NEAL 9I.
Rather than nine independent drilling decisions, the data points toward one coordinated full-section development project.
Subsurface Data Points to Co-Development
The subsurface profile makes the Neal project particularly interesting.
All nine wells are classified as horizontal wells within the SPRABERRY (TREND AREA) field, but their projected depths divide into two distinct groups:
Projected Depth Well Count 8,479 ft 3 10,381 ft 6 Total 9
The two groups are separated by approximately 1,902 vertical feet.
More importantly, both depth groups occur on both drilling pads.
PAD-001 contains wells at both 8,479 ft and 10,381 ft, and PAD-002 repeats the same multi-depth pattern. That makes projected depth more than a simple variation between separate pads; it suggests that the development plan itself incorporates multiple vertical intervals across the section.
Across all nine wells, XTO has approximately 87,723 feet of projected drilling, with an average projected depth of roughly 9,747 feet per well.
Is Neal a Stacked Reservoir Development?
The available permit data supports classifying Neal as a likely stacked reservoir/co-development project.
The key signals are the combination of two physical pads, nine horizontal wells, common section, common field designation, coordinated permitting and two distinct projected-depth tiers represented on each pad.
The regulatory Field designation does not independently prove the exact geological landing zone of every lateral. Additional formation and completion data would be required to definitively identify each target reservoir.
However, the approximately 1,900-foot difference in projected depths, repeated across both pads, is a strong indicator that XTO is planning development across different vertical intervals within the broader Spraberry system.
In practical terms, Neal looks less like a collection of wells and more like a full-section stacked development program.
Why Factory Development Matters to Oilfield Service Companies
For oilfield service companies, recognizing this pattern early can be significantly more valuable than simply identifying nine new permits.
A single permit represents a well opportunity. A nine-well, two-pad, multi-depth factory development represents a much broader project opportunity.
Once development moves to this scale, requirements can extend across pad construction, roads, water, drilling, directional services, casing, cementing, mud, chemicals, completions, frac, wireline, artificial lift, production equipment, automation, electrical infrastructure, flowback and facilities.
The two-pad configuration also creates opportunities for shared infrastructure. Surface facilities, gathering, water handling, electrical systems, communications and production automation can potentially be planned around the broader section rather than individual wells.
For sales teams, that changes the question from “Who has a new well permit?” to “Which operators are building the next factory development?”
Industry Impact
The XTO Neal Lease demonstrates why combining surface location and subsurface data provides a more complete view of Permian activity.
Viewed individually, these are nine XTO well permits. Viewed together, they reveal something much more significant: a two-pad, full-section horizontal development with multiple projected-depth tiers and strong indications of stacked reservoir co-development.
That distinction matters for suppliers and service companies. Identifying the project at the factory-development stage provides an opportunity to engage XTO and its contractors before individual wells progress through drilling, completions and production — potentially turning nine individual leads into one major development account opportunity.
Author: phinds