NEWS BULLETIN

May 22, 2020 --- Vol. 26, No.30May 2020

Hilcorp gets approval for Whiskey Gulch strat test plan

The Alaska Department of Natural Resources' Division of Oil and Gas approved Hilcorp Alaska's lease plan of operations May 15 for the Whiskey Gulch stratigraphic well test program on the southern Kenai Peninsula near Anchor Point.

The program includes drilling up to five shallow stratigraphic test wells with a maximum depth of 600 feet each on state of Alaska subsurface lands and private surface lands.

The wells will be drilled using a truck-mounted air drilling unit at locations accessible from established roads. Upon completion and evaluation each well will be plugged and abandoned consistent with regulatory requirements.

Cuttings generated by drilling activities will be captured in a tank and transported to an approved disposal facility. Activities will begin immediately and may last until Aug. 5, 2020. The operations for each well will take approximately one to four days.

-KAY CASHMAN

Alyeska oil prorations eliminated

Alyeska Pipeline Service Co. has ended oil flow prorations on the trans-Alaska pipeline system as of May 22.

"Alyeska Pipeline returns to normal operations tomorrow," Brigham A. McCown, Alyeska president said in a May 21 Twitter post. "After reviewing flow rates, current and projected inventory, and vessel movements, we will be eliminating the remaining 5% curtailment of shipments (proration) imposed earlier in May."

The action comes one week after Alyeska cut its curtailment of shipments from 15% to 5% on May 15.

Alyeska instituted the prorations April 24 because of inventory concerns – to avoid overloading the 800-mile pipeline and it's 6.6 million barrel tank farm at the Valdez marine terminal.

McCown said in a May 18 post that inventory, and supply chain distribution improvements have made the lifting of prorations possible. If inventory in the pipeline system rises above 75%, Alyeska adjusts by altering tanker schedules, or by proration – requesting producers to send less oil.

-STEVE SUTHERLIN

See full stories in May 31 issue, available online Friday, May 29 at www.PetroleumNews.com

For information on PN's news bulletin service, call 907-522-9469.

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