Hilcorp evaluating new Cannery Loop wells
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Company reports work accomplished under 2021 POD, work planned under 2022 POD — the 43rd — at Kenai Peninsula natural gas field
Kristen Nelson Petroleum News
Hilcorp Alaska has filed the 43rd plan of development for its Cannery Loop unit on the Kenai Peninsula with the Alaska Division of Oil and Gas. The company said the plan will be effective from Aug. 1 through July 31, 2023.
Cannery Loop is one of the smaller Cook Inlet gas producers, accounting for some 2.2% of inlet natural gas in March, the most recent month for which Alaska Oil and Gas Conservation Commission production data is available.
Cannery Loop is one of the mature assets Hilcorp acquired in the Cook Inlet basin when it invested in Alaska properties more than 10 years ago.
In the POD, filed April 29, Hilcorp provided a report on the 2021 POD, which was approved by the division last year. For the 2021 POD, the company said it was evaluating potential development wells, including a sidetrack of Cannery Loop unit 10 which would target the Deep Tyonek sands. Hilcorp said it was also evaluating new information and production results from the CLU 6RD “as well as ongoing intervention/recompletion activity.”
The company said it would evaluate adding velocity strings or other artificial lift options to enhance production from various wellbores and would evaluate and carry out additional well work opportunities “as they arise.”
“If well performance changes significantly on existing wells, a rig workover and/or perf ads will be evaluated as necessary to maintain and enhance existing CLU production,” Hilcorp said.
Hilcorp said production from Cannery Loop was 4.67 million cubic feet per day during calendar year 2021, with cumulative production from the unit 1.7 billion cubic feet for the year.
Work completed under 2021 POD Workover and wellwork projects the company completed under the 2021 POD include:
*CLU 14 - adding additional perforations in the Middle Beluga sands, which “were wet and brought in sand.” The company then used coil tubing to plug back existing perforations and perforate the Upper Beluga 4A sand, increasing production by some 2.7 million cubic feet per day.
*CLU 15 - additional perforations were added in various Lower Beluga, Middle Beluga and Upper beluga sands, increasing production by some 300 thousand cubic feet, mcf, per day.
Hilcorp said it plans to complete rig workovers and non-rig wellwork projects during the remainder of the 2021 POD:
*CLU 01RD (Eline) - adding perforations in the Beluga sands;
*CLU 08 (Coil/Eline) - using coil tubing to gain access to add perforations in Upper Beluga sands;
*CLU 09 (Eline) - adding perforations to Beluga sands;
*CLU 13 (Coil) - cement tubing by inner annulus to add Upper Beluga perforations;
*CLU 05RD (RWO) - rig/rigless wellwork in preparation for potential sidetrack in 2022 POD period;
*CLU 10 (RWO) - rig/rigless wellwork in preparation for potential sidetrack in 2022 POD period; and
*Additional rig/rigless wellwork may occur in preparation for potential sidetrack(s) in 2022 POD period.
Also under the 2021 POD, Hilcorp said an additional sales compressor is planned to be installed in the second quarter on CLU pad 3 to increase throughput.
The company said it completed all approved development work at Cannery Loop during the 2021 POD period.
2022 POD Under the proposed 2022 POD Hilcorp said it is evaluating additional wells for the Beluga and Tyonek sands, with timing “dependent upon current risked resource and economies, market demand, pipeline and compression capacity, and competitiveness within Hilcorp’s gas project portfolio.”
The company said it does not have planned exploration or delineation activities for any land at Cannery Loop which is not included in a participating area.
Current gas production from Cannery Loop will be “maintained and enhanced” and Hilcorp said it will evaluate adding velocity strings and/or other artificial lift options to enhance production.
The company anticipates drilling one grass roots well targeting the Beluga and Tyonek formations, “pending results from initial sidetrack drill well results.”
Up to three sidetracks are anticipated targeting the Beluga and Tyonek formations from shut-in wells.
Various rig and non-rig well projects are planned during the 2022 POD, potentially including: preparations for potential sidetrack(s); coil cleanout operations; adding perforations of additional gas sands; setting plugs or patches for potential water shutoff activities; and additional wellwork opportunities which will be evaluated and executed as they arise, Hilcorp said.
Installation of a sales compressor is planned for CLU pad 1 during the third quarter to increase throughput from the facility.
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