Division OKs North Fork contraction delay

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas has approved a request from Hilcorp Alaska to delay the contraction of the North Fork unit. Hilcorp took over as North Fork working interest owner and operator in May 2025.

There are five state oil and gas leases in the unit, some 2,602 acres, and one participating area, the NFU Gas Pool No. 1. Sustained production began at North Fork in April 2011.

The initial mandatory contraction date was April 6, 2021, and the division said it has approved multiple delays of contraction primarily due to changing operators at North Fork -- three operator changes in the last 4 years. The most recent contraction delay was approved Nov. 21, 2024, through Dec. 31, 2025.

The division said in its Jan. 5 decision that Hilcorp requested a delay of contraction to May 1, 2026, to coincide with the requested shortened 60th plan of development. The division said it approved the 60th POD but did not approve the shortened POD period.

Hilcorp has completed a technical study of the unit, identified four potential drilling opportunities and committed to drilling one sidetrack and one grassroots well during the 60th POD. The company told the division Dec. 16 in a technical meeting that pending results of those wells it may drill outside the existing unit area in 2027.

The division said that based on Hilcorp's recent acquisition of North Fork and its commitment to development, it approves a delay of contraction to Oct. 1, 2027, allowing Hilcorp time to drill wells and evaluate results.

--KRISTEN NELSON