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Hilcorp advancing Happy Valley pad, wells Pad approved in Jan. 26 decision would be 3rd at Deep Creek; road to pad crosses state and private lands, approval for state land Kristen Nelson Petroleum News
Hilcorp Alaska has received approval for a new pad on state lands in the Deep Creek unit on the Kenai Peninsula and for portions of a new road which cross state lands. A Jan. 26 decision by the Alaska Department of Natural Resources' Division of Oil and Gas is for the Happy Valley Middle Pad and road to support natural gas exploration. The division said the project is some 13 miles northeast of Anchor Point and 5 miles east of the Sterling Highway.
Deep Creek currently produces from Happy Valley A and Happy Valley B pads; the proposed Middle Pad would be the third in the unit and provide the company access, the division said, to "undeveloped leases in the Kenai Peninsula."
Deep Creek is one of the smaller Cook Inlet natural gas fields, averaging 3,457 thousand cubic feet per day in December, the most recent month for which Alaska Oil and Gas Conservation Commission production data is available, up 24.38% from December 2024 volumes.
The 3-mile road crosses surface lands held by DNR, and also lands held by Cook Inlet Region Inc. and the Ninilchik Natives Association Inc.
Through their attorney, NNAI objected to the project, as a portion of the road crosses its surface lands.
In its decision the division acknowledged that Hilcorp's original application did not identify NNAI as an affected private surface landowner but said Hilcorp submitted an amended application correcting surface ownership information, and the division issued a second public notice for the amended application.
The division said that its decision does not authorize access to private lands and said its approval of the lease plan of operations authorizes activities only on state oil and gas leases.
Drilling The new gravel pad would be 300 by 400 feet. Hilcorp would install gas flowlines, electrical instrumentation, line heaters, separators, compressors, a communication tower, well cellars and conductors.
The lease plan of operations approval includes two grassroots wells and one freshwater well to support drilling operations.
Proposed operations include vegetation clearing and grubbing of the project area, proposed to begin Dec. 1, 2025, and end Jan. 15; installation of the pad and road, proposed to begin Jan. 15 and end March 15; installation of cellars and conductors, water well, mobilization of the drilling equipment and beginning of drilling and well testing, proposed to begin March 15 and end June 15; and installation of facility piping, electrical instrumentation and other infrastructure as needed, proposed to begin June 15 and end July 15.
Hilcorp Rig 169 or Rig 147 would be used for drilling and well completion.
Current Deep Creek production is from three wells on the Happy Valley A pad and six wells on the Happy Valley B pad.
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