New Cannery Loop development well planned

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources’ Division of Oil and Gas has approved an application from Hilcorp Alaska LLC for a grass roots development well at the company’s Cannery Loop unit. The unit produces natural gas.

The proposed CLU No. 15 well would be drilled from CLU Pad 3, the division said, with drilling activities to include installation of well cellar and conductor, installation of flowlines, facility piping and instrumentation lines to connect the well to existing production infrastructure on CLU Pad 3.

Drilling is expected to begin Jan. 10 and to last for some 40 days, with installation of gas flowlines and electrical instrumentation to follow. Those activities are expected to be complete by April 1.

The company’s most recent plan of development, submitted May 1, listed one proposed development well, CLU No. 14. The division approved that grass roots well in June and Alaska Oil and Gas Conservation Commission records show the well began production in mid-September, with October the first full month of production for the well. The field produced 216,751 thousand cubic feet in October 2018 and 256,259 mcf this October, an increase of 18%.

The CLU No. 14 was drilled from CLU Pad 1, some 1.5 miles south of the city of Kenai near the mouth of the Kenai River.

There were six wells in production at the gas field prior to CLU No. 14 coming online; currently there are seven.

The CLU was formed in June 1978, the division said in its Dec. 12 approval letter, following the CLU 1 gas discovery well in the Tyonek formation.

- KRISTEN NELSON