State of Alaska okays Hilcorp’s PBU Western Satellites 2023 plan

Kay Cashman

Petroleum News

On Nov. 18 the Alaska Department of Natural Resources’ Division of Oil and Gas sent Kyndall Carey with Hilcorp North Slope LLC a letter saying that the company’s Prudhoe Bay Unit Western Satellites Area 2023 plan of development had been approved, running from Jan. 1 through Dec. 31, 2023.

The letter was signed by Derek Nottingham, division director.

On Sept. 30 the division received Hilcorp’s proposed 2023 Western Satellites Participating Areas POD from the company and the agency notified Hilcorp by email on Oct. 11 that the submittal was deemed complete.

On Nov. 7 Hilcorp provided a technical review to the division.

The PBU Western Satellites area consists of five participating areas: Aurora, Borealis, Midnight Sun, Orion and Polaris. The Aurora, Borealis, and Midnight Sun PAs produce primarily from the Kuparuk River formation, while the Orion and Polaris PAs produce oil with higher viscosity from the Schrader Bluff formation.

Through September 2022, the PBU Western Satellites PAs have cumulatively produced 250.09 million barrels of oil and 484.57 billion cubic feet of natural gas, Nottingham said in the Nov. 18 approval letter.

In its proposed 2023 POD, Hilcorp committed to drilling up to 26 new wells in the following PAs:

• Aurora PA - up to one producer.

• Borealis PA - up to three producers and two injectors.

• Orion PA - up to 12 producers and injectors.

• Polaris PA - up to eight producers and injectors.

The company also committed to up to four workovers or recompletes, two in the Orion PA and two in the Polaris PA.

Hilcorp said it will continue evaluation of pad options, facility layouts, and subsurface development schemes for I Pad development; and a three well polymer pilot in Polaris PA to determine polymer’s impact on injectivity, MI utility, oil rate and reserves for potential future implementation of polymer throughout the Polaris PA and the Orion PA.

Questions regarding the decision are being handled by Heather Beat with the division at (907) 269-8792 or via email at [email protected]

- KAY CASHMAN