NEWS BULLETIN

October 10, 2019 --- Vol. 25, No.42October 2019

Hilcorp gets OK for gas chiller to boost Northstar output

The Alaska Department of Natural Resources' Division of Oil and Gas has approved Hilcorp Alaska's feed gas chiller project for Northstar Island, which will allow the company to increase natural gas liquid recovery during the summer months by holding the NGL separator at its optimum process temperature year round. This will boost the field's annual sales oil production.

Hilcorp had applied for an amendment to its Northstar unit plan of operations on Aug. 29.

How much NGL output will increase was not provided in the company's filing or the division's decision, but NGL production this past summer averaged about 1,350 barrels per day, while the other nine cooler months averaged some 3,010 bpd, the difference being 1,660 bpd less for June, July and August.

In its description of the scope of the project, the division said Hilcorp had requested and been approved to install a chiller and a gas-to-gas heat exchanger on Northstar Island within the Northstar Island unit.

"Accompanying this new equipment will be a new motor control center, a propane compressor, condenser and receiver," the agency said in its decision. "The chiller and gas-to-gas exchanger will be installed on top of the existing south process module."

Per Hilcorp's schedule, work on the chiller project was to begin immediately with the with gravel excavation to place concrete footings for a new steel support frame above the footings and modules, with a completion target of May 20 when things such as making electrical connections and installing additional infrastructure and tie-ins, as needed, will be done.

Northstar Island, the division said. is approximately 18 miles east of Milne Point. The gas chiller project will involve state lease ADL 312799.

- KAY CASHMAN

XCD completes Peregrine project ground survey

XCD Energy has finished its summer archaeological ground survey for its Peregrine project in the National Petroleum Reserve-Alaska.

The survey is an "important ingredient" in the independent's prospective resource report which the Alaska-focused Australia based oil junior commissioned with ERC Equipoise Pte Ltd. The report is expected to be finalized in late October.

"The engagement of ERCE to undertake the independent prospective resource report … will set the company up well to commence a farm-out campaign later this year," XCD's Managing Director Dougal Ferguson said.

- KAY CASHMAN

See stories in Oct. 13 issue, available Friday, Oct. 11 at www.PetroleumNews.com.

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