Phoenix Energy (f/k/a Phoenix Capital Group) Drilling Audit: How 6.46-Day 3-Mile Laterals, 9.29-Day 4-Mile Pads, and Montana Switchback Wells Drove Output Past 50,000 BOPD

1. Executive Summary: From 100 BOPD to 50,700 BOPD in 30 Months

To evaluate the operational trajectory of Phoenix Energy (formerly Phoenix Capital Group) objectively, analysts must distinguish between the company's two distinct eras: its 2019–2023 phase as a mineral rights and non-operating working interest acquirer, and its 2023–2026 transformation into a high-velocity horizontal drilling operator led by Chief Executive Officer Adam Ferrari (B.S. Chemical Engineering, magna cum laude, UIUC '05).

At the beginning of January 2024, Phoenix Energy's operated production stood at roughly 100 barrels of oil per day (BOPD). By July 19, 2026, operated output crossed the 50,000-BOPD mark, reaching approximately 50,700 BOPD—representing a 500-fold operational expansion in just over two and a half years and 60% year-over-year growth from June 2025 to June 2026.

2. The All-Time Bakken 3-Mile Drilling Speed Records (6.46 to 6.60 Days)

Horizontal drilling in the Bakken and Three Forks formations of North Dakota dates back to 2007, with tens of thousands of horizontal wells drilled by supermajors and large independents. Yet before the third quarter of 2024 had concluded, Phoenix Operating (then operating under the Phoenix Capital Group banner) had drilled four of the five fastest three-mile horizontal wells in the entire history of the Bakken Formation, measured by calendar days from spud to total depth (Days to TD).

In May 2024, Phoenix Operating set a basin benchmark on the Daniele 26-35-2 2H well in the Alamo project area (Williams/Divide County, ND), reaching a total measured depth (MD) of 25,225 feet in 6.52 days. Just seven weeks later, on June 29, 2024, Phoenix beat its own record on the Axel Ferrari 25-36-1 4H well, reaching a total depth of 25,175 feet in just 6.46 days from spud—an average rate of penetration (ROP) exceeding 3,890 feet per day across vertical, curve, and three-mile horizontal sections.

3. Pioneering the 4-Mile Lateral Frontier: Nystuen (20,797.5 ft) & Willow Gray (9.29 Days)

While standard modern Bakken wells utilize two-mile (10,000 ft) or three-mile (15,000 ft) laterals, extending horizontal reach to four miles (~20,000+ feet of horizontal reservoir contact, or ~30,000+ feet total measured depth) unlocks transformative capital efficiency. A four-mile lateral contacts roughly 33% more oil-bearing Middle Bakken or Three Forks dolomite than a three-mile well while requiring only a single vertical wellbore, surface wellhead, and artificial lift installation.

In 2025, after contracting its third drilling rig, Phoenix Energy / Phoenix Operating executed back-to-back Williston Basin firsts in Divide and Williams Counties, North Dakota:

• First Operator to Drill Five 4-Mile Laterals from a Single Pad (The Nystuen Pad — Big Stone / Alamo): On June 17, 2025, Phoenix Operating completed drilling on Nystuen 20-17-8-5-1H (NDIC #41872), achieving a 20,797.5-foot (~20,800 ft) horizontal lateral in a single continuous run—the longest 4-mile lateral in company history and one of the longest single-run laterals ever drilled in North America. Sister well Nystuen 20-17-8-5-4H (NDIC #41874) reached total depth in just 10.38 days on July 16, 2025.
• Inside the NDIC Well File for Nystuen 20-17-8-5-5H (NDIC #41875): Public NDIC drilling tour records illustrate Phoenix's precision geosteering. On Nystuen 5H, the vertical section was drilled overnight in less than 12 hours (June 22–23, 2025); the 90-degree curve was landed at 10,240' MD / 9,642' TVD in roughly 14 hours; and the wellbore reached a total measured depth of 30,926 feet (5.86 miles of total steel pipe, with a 19,786-ft lateral) in 13.35 days, maintaining an extraordinary 97% in-zone placement within the Middle Bakken C-facies target window.
• First Operator to Drill Six 4-Mile Laterals from a Single Pad & 9.29-Day Speed Record (The Willow Gray Pad — Divide County, ND): Immediately following Nystuen, Phoenix Operating spudded the six-well Willow Gray 2-11-14-23 pad (`API 33-023-01636` through `33-023-01641`). Three wells on this pad shattered the 10-day barrier for four-mile laterals:
  • Willow Gray 2-11-14-23-4H (`API 33-023-01639`, NDIC #42042): Reached 4-mile TD in 9.29 days on September 24, 2025 (Fastest 4-Mile Lateral).
  • Willow Gray 2-11-14-23-2H (`API 33-023-01637`, NDIC #42040): Reached 4-mile TD in 9.71 days on September 14, 2025.
  • Willow Gray 2-11-14-23-5H (`API 33-023-01640`, NDIC #42043): Reached 4-mile TD in 9.77 days on October 6, 2025.

4. Montana Basin Firsts (Q2 2026): First 4-Mile Switchback ("U-Turn") Wells & First Full 4-Mile Unit Development

In September 2024, Phoenix Energy expanded its operated rig footprint westward across the state line from North Dakota into the Montana portion of the Williston Basin. During the second quarter of 2026, Phoenix Operating achieved two historic engineering milestones in Montana:

1. First Four-Mile Lateral Switchback ("U-Turn") Wells in Montana: In lease geometries where section boundaries or surface topography prevent a straight 20,000-foot wellbore corridor, switchback (or horseshoe / U-turn) trajectories drill two-mile outbound legs, execute a controlled 180-degree horizontal turn within the target reservoir, and drill two miles back toward the surface pad. In Q2 2026, Phoenix Operating drilled its first four-mile lateral switchback wells—the first such wells ever drilled in the state of Montana (followed by two additional 4-mile U-turn wells under development on the Bonsai (Shogun) pad).
2. First Full Four-Mile Lateral Unit Development in Montana (8 Wells Across 2 Units): Also in Q2 2026, Phoenix Energy completed the first full four-mile lateral unit development in Montana history, consisting of two four-well unit developments (eight four-mile wells in total). Overall in Q2 2026, Phoenix released rigs on 19 Bakken production wells (including 11 four-mile laterals and one four-mile switchback well) and placed 28 newly fractured wells into production.

5. Midstream Water Infrastructure & Cost Discipline ($6.3M Willer Pad Wells)

A critical but often overlooked driver of Bakken netbacks is produced water management. In Q2 2026, Phoenix Energy released rigs on its first two horizontal saltwater disposal (SWD) wells in Montana (with an average lateral length of ~2,783 feet). Across the company's entire portfolio in Q2 2026, Phoenix produced approximately 13.4 million barrels of water and injected approximately 13.1 million barrels through its own operated SWD facilities—meaning 97.8% of total produced water volumes were handled internally, eliminating costly third-party trucking and disposal fees.

Combined with sub-7-day 3-mile drilling and sub-10-day 4-mile drilling, this vertical integration drove per-well capital costs on the Willer pad down to an average of $6.3 million per well—$1.4 million per well below budget, yielding $8.6 million in total project savings while achieving peak initial production rates of 1,100 BOPD (alongside 1,153 BOPD on the 19,520-ft Daniel Ferrari 3-10-15-22 1H pad).