DNR OKs two new wells at Ninilchik unit

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources’ Division of Oil and Gas has approved an amendment to Hilcorp Alaska’s unit plan of operations for the Ninilchik unit, allowing the company to drill two grassroots natural gas wells from the Paxton pad.

“The two new gas wells and associated infrastructure, including well cellars and conductors, gas flowlines, and electrical instrumentation, will support continued natural gas production from the Ninilchik Unit,” the division said in an Oct. 1 decision.

Drilling will begin on or after Oct. 3, the division said, with tie-in and construction continuing until approximately March 4, 2021.

All the planned activities will be on pad and tie into existing gas production infrastructure.

Hilcorp has already received a drilling permit for one of the wells, Paxton No. 10, from the Alaska Oil and Gas Conservation Commission. A permit had not yet been issued for the second well, Paxton No. 11, when this issue of Petroleum News went to press.

Paxton pad is some 3 miles north of Ninilchik, with both surface lands and subsurface oil and gas mineral estate privately owned.

In August, the most recent month for which AOGCC has posted production data, there were eight producing gas wells at the Paxton pad, averaging 10,214 thousand cubic feet per day. The Ninilchik unit, one of Cook Inlet’s largest, averaged 31,879 mcf per day in August, almost 15% of Cook Inlet natural gas production.

Prior to the current amendment to the current 16th Ninilchik POD, Hilcorp was proposing to drill the Kalotsa No. 5 and possible targets in the Grassim Oskolkoff participating area.

- KRISTEN NELSON