State OKs work at small Cook Inlet fields
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Plans of development approved for Hilcorp Alaska-operated Ivan River, Lewis River, Pretty Creek — all west side natural gas fields
Kristen Nelson Petroleum News
Hilcorp Alaska began acquiring Alaska oil and natural gas assets more than 10 years ago, beginning with mature Cook Inlet fields, in line with its Lower 48 business model of acquiring and extending the life of mature assets. Annual plans of development filed with the Alaska Division of Oil and Gas describe the company’s continued work on those Cook Inlet assets, drilling new wells where appropriate and reworking older wells to maintain production.
The division recently approved Hilcorp’s annual plans of development, PODs, for three small Cook Inlet gas fields - Ivan River, Lewis River and Pretty Creek - and for the Pretty Creek gas storage lease.
Ivan River The 52nd POD for Ivan River, approved May 9, covers June 1, 2022, through March 31, 2023. Ivan River is an onshore gas field on the west side of Cook Inlet formed in 1967 by Standard Oil Company of California, the division said. Hilcorp took over as operator from Union Oil Company of California effective Jan. 1, 2012.
The Ivan River unit was originally 24,439 acres; its current size is 2,295.34 acres. There are two participating areas, the Sterling-Beluga Gas PA and the Tyonek Gas PA.
Cumulative production since the inception of the unit through March 31 was 91.087 billion cubic feet of natural gas.
Under the 51st POD, approved for June 1, 2021, through May 31, 2022, Hilcorp planned to evaluate delineation opportunities in the PAs and a potential rig workover on the IRU 11-06, the division said.
From June 1, 2021, through March 31, Ivan River production averaged 8,208 thousand cubic feet of gas per day.
In August, Hilcorp proposed, and the division approved, drilling of a new well, IRU 241-01.
Hilcorp began drilling operations on the IRU 241-01 and completed the rig workover on IRU 11-06. The company also did a non-rig workover on the IRU 41-01, work not originally included in the 51st POD.
Hilcorp suspended drilling of the IRU 241-01 due to extreme winter conditions and will return to work on the well in the fourth quarter of 2022, the division said.
Under the proposed 52nd POD, Hilcorp plans to complete the IRU 241-01 and perform various non-rig well projects.
Lewis River The 47th POD for Lewis River, approved May 9, covers June 1 through May 31, 2023. Lewis River is an onshore gas field on the west side of Cook Inlet. The unit was formed by Cities Service Oil Co. in 1977 and Hilcorp took over as operator from Union Oil Company of California effective Jan. 1, 2012, the division said.
There are 620 acres in the unit and two participating areas, LRU Gas Pool No. 1 PA and LRU Gas Pool No. 2 PA, with all current production from the No. 2 PA.
From its inception through March 31, cumulative production from Lewis River was 16.625 billion cubic feet of natural gas.
For the 46th POD, June 1, 2021, through May 31, 2022, Hilcorp committed to maintaining production from the LRU Gas Pool No. 2 PA, a plan the company revised in March 2021 to include plans to perforate a new Sterling sand in the LRU A1 well. The division said Hilcorp perforated the Sterling A in the LRU A1, “which proved unsuccessful.”
From June 1, 2021, through March 31, LRU production averaged 1,039 thousand cubic feet per day, all from the No. 2 PA.
For the 47th POD, the division said Hilcorp commits to maintaining Lewis River production and performing various non-rig well projects.
Pretty Creek unit The division approved the Pretty Creek unit 44th POD May 9. Pretty Creek is an onshore gas unit on the west side of Cook Inlet, formed in 1977 by Union Oil Company of California. The unit has 12 tracts covering 4,660 acres entirely within the Beluga Participating Area, with cumulative production of 9.615 billion cubic feet through the end of March.
The division said Hilcorp took over as operator effective Jan. 1, 2012, and since then has cumulatively produced 149.96 million cubic feet of natural gas from Pretty Creek through the end of March.
“In August 2019, however, production ceased, and Hilcorp began work to restore production,” the division said.
In the 43rd POD, covering June 1, 2021, through May 31, 2022, the division said “Hilcorp committed to evaluating the potential twin of the PC-4 well to access the Sterline sands discovered in its regional study conducted during the 42nd POD period, and conducting a coil cleanout of the PC-02 to access and perforate potential Sterling sands targets.”
The company completed the coil cleanout of the PC-02 in July 2021, allowing it to isolate deeper Sterling sands, and perforated the Sterling X sand in December 2021. In January 2022 Hilcorp produced 1,807 thousand cubic feet of natural gas from the PC-02 over a three-day period, the division said.
In the 44th POD, covering June 1 through May 31, 2023, the company committed to maintaining production from the PC-02 well and doing various non-rig well projects.
On May 9 the division also approved the 18th POD for the Pretty Creek gas storage lease. The lease was granted to Union Oil Company of California in October 2005 and amended in October 2011. The lease is on the west side of Cook Inlet within the boundaries of the Pretty Creek unit. Hilcorp took over operatorship effective Jan. 1, 2012.
In 2015 the division granted Hilcorp’s request to extend the gas storage lease for one additional 10-year term, expiring in September 2025.
There are some 1,998.8 acres in the gas storage lease, which “utilizes two gas storage horizons for storage operations” using Sterling 45-0 gas sands and Beluga 51-5 gas sands in the PC-4 well, the division said. Effective the end of March, the gas storage lease has cumulatively stored 7.12 billion cubic feet and withdrawn 6.66 bcf.
Under the 17th POD, Hilcorp planned to continue to use the gas storage lease for storage, with long-range plans including “a potential secondary compressor to allow the reservoir to be depleted to a lower pressure thereby maximizing recovery,” the division said.
During the 2021 calendar year the company injected 448.88 million cubic feet of natural gas and withdrew 558.97 mmcf, compared to injection of 320.65 mmcf and withdrawal of 613.99 mmcf during the 2020 calendar year.
For the 18th POD, effective June 1 through May 31, 2023, Hilcorp said it would “pursue improvements through various well, infrastructure and facility repairs as the need arises,” the division said.
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