State approves Milne Point expansion

The state has approved an expansion of the Milne Point unit to return portions of two leases and two active disposal wells entirely within the North Slope unit’s boundaries.

By returning 1,268 acres from ADL 392703 and ADL 47438 back to the unit, the May 12 decision also returns the entirety of the Milne Point B-24 and Milne Point B-50 disposal wells - specifically the bottom-hole locations - back into the boundaries of the unit.

Through an oversight, a previous contraction of the unit segregated the top of those wells from the bottoms, allowing outside investors to acquire one of the leases. Milne Point unit operator Hilcorp Alaska LLC resolved the matter of land ownership in 2015. The current decision resolves the remaining administrative problems around the leases.

Since acquiring operatorship and 50 percent ownership of the unit from BP Exploration (Alaska) Inc., Hilcorp has been undertaking a comprehensive development program.

- ERIC LIDJI