Hilcorp adds wells, workovers to Milne POD

Kristen Nelson

Petroleum News

The Alaska Division of Oil and Gas has approved an amendment to Hilcorp Alaska’s 2021 Milne Point unit plan of development adding five wells, as many as 11 well workovers, coiled tubing drilling and facility projects.

The 2021 39th POD, approved in November for work from Jan. 13, 2021, through Jan. 12, 2022, already included up to 17 new wells at Milne Point - Schrader Bluff I Pad and J Pad injectors and producers - up to 20 well workovers and a number of key facility projects (see stories in Oct. 18 and Dec. 6 issues of Petroleum News).

The POD amendment, approved Feb. 24, adds to the work already approved:

*A proposed five-well drilling program at S Pad - two injectors and three producers.

*Completion of up to 11 well workovers with the Doyon 14 rig.

*A coiled tubing sidetrack drilling program - two wells at C Pad; four wells at F Pad; and one well at L Pad.

*Major facility projects - transformer replacement on Tract 14; S Pad header expansion and polymer facility project; and an upgrade to the L Pad polymer systems.

The proposed addition to the 2021 Milne drilling program would bring that total to 22 wells; well workovers could total 31.

Hilcorp came to Alaska in 2011 and 2012 with significant acquisitions in Cook Inlet, picking up assets formerly operated by Union Oil Company of California and Marathon Oil Corp. Hilcorp is currently the dominant Cook Inlet oil and gas producer.

A 2014 deal with BP, which gave Hilcorp entre to Alaska’s North Slope, included 50% working interest ownership and operatorship at Milne. Hilcorp renewed the focus on Milne’s viscous oil, investing some $700 million in conjunction with BP and drilling more than 60 new wells. Production from Milne averaged 18,400 barrels per day when Hilcorp became operator and in January averaged more than 35,000 bpd. As part of its 2019 purchase of BP’s assets in Alaska, finalized in 2020, Hilcorp became 100% working interest owner at Milne Point.

- KRISTEN NELSON