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PODs for 3 small Cook Inlet gas fields
Two companies, AIX, Hilcorp Alaska, file plans of development for Kenai Peninsula fields: Cannery Loop, Deep Creek, Kenai Loop Kristen Nelson Petroleum News
Cook Inlet's largest gas producer, Hilcorp Alaska, and one smaller producer, AIX Energy, have filed plans of development for three of Cook Inlet's smaller gas fields, all on the Kenai Peninsula. Two of the fields are in the Kenai area - Cannery Loop and Kenai Loop - and the third, Deep Creek, is inland southeast of the community of Ninilchik.
(See unit map in the online issue PDF)
Cannery Loop Hilcorp's Cannery Loop is the oldest of the three fields and this is the 44th POD for the unit. The plan covers Aug. 1 through July 31, 2024.
Cannery Loop is the most productive of the three fields, averaging 5.95 million cubic feet per day in March, the most recent month for which Alaska Oil and Gas Conservation Commission production volumes are available.
Hilcorp said that during calendar year 2022 production at Cannery Loop was 4.66 million cubic feet per day, with cumulative production from the unit during 2022 of 1.71 billion cubic feet.
In 2022, under the previous POD, Hilcorp sidetracked two wells in the unit, CLU 05RD2 and CLU 10RD.
The company had planned as many as three sidetracks and, pending results from the sidetracks, said it anticipated drilling a grassroots well targeting the Beluga and Tyonek formations. The company said it would evaluate adding velocity strings and/or other artificial lift options.
It also planned various rig and non-rig well projects and planned to install a sales compressor on CLU pad 1 to increase throughput from the facility.
Hilcorp said it did not install an additional sales gas compressor and said it currently has no plans to install additional compression; it also did not drill any grassroots wells.
CLU 2023 POD In its 2023 POD, Hilcorp said it is evaluating additional drill wells at Cannery Loop targeting the Beluga and Tyonek sands and said it would evaluate adding velocity strings and/or other artificial lift options in various wellbores; it currently has no plans for drilling at the unit in 2023.
It also is not planning any additional sidetracks.
Various rig and non-rig well projects may include: preparations for potential sidetrack(s); coil cleanout operations; perforations of additional gas sands; and plugs or patches for potential water shutoff activities.
The company said it would evaluate and perform additional well work opportunities as they arise.
No major facility upgrades are planned.
Deep Creek Hilcorp's Deep Creek is a newer unit, on just its 20th POD.
Under the previous POD Hilcorp said it was evaluating a sidetrack from the HVB 16 well or drilling a new well, HVB 18. Both would target the Tyonek sands.
During calendar year 2022, Hilcorp said, average production from the Happy Valley participating area was 3.04 million cubic feet per day, with cumulative production for 2002 from the Happy Valley PA 1,109 million cubic feet.
There was also production from tract operations - acreage not in a participating area, which averaged 545 thousand cubic feet, mcf, for the calendar year. Hilcorp said two wells, HVB 14 and HVB 15, produce on a tract basis, with total cumulative tract production for the 2022 calendar year 199 million cubic feet.
During 2022 the company sidetracked one well, HVB-16A.
The POD the company just filed covers Aug. 1 through July 30, 2024.
Hilcorp said it has no long-term development plans but future wells "will be evaluated based upon current risked resource and economics, market demand, pipeline capacity, and competitiveness within Hilcorp's gas project portfolio."
The company said it would evaluate and execute well work opportunities as they arise. "If well performance changes significantly on existing wells, rig workovers, perf adds, water shut-offs, and or fill cleanout will be evaluated as necessary" to maintain and enhance production.
No major facility upgrades are planned.
Kenai Loop AIX Energy's Kenai Loop is the newest of this group of units, with the company filing the ninth plan of development and operations for the field, effective May 7 through May 6, 2024.
The discovery well, KL 1-1, was drilled in 2011; AIX took over as operator in the fall of 2014.
AIX said the field is developed from one drill pad, KL-1; there are four wells, two producers (KL 1-1 and KL 1-3); a well temporarily suspended, KL 1-2, which could possibly be used as a disposal well; and a shut-in producer, KL 1-4, not tied into the field's production system.
Cumulative (through March 31) gas production was 27.1 bcf, AIX said; cumulative water production was 11,114 barrels; cumulative condensate production was 2,897 barrels.
AIX said it sells all gas volumes from Kenai Loop to a single purchaser under a 3-year "Firm as Available" contract.
In its proposed ninth POD AIX said KL 1-3 was shut-in "due to declining reservoir pressure and mechanical issues with the compressor. A procedure to return it to production will be implemented." The company did not say when the well was shut-in, but AOGCC records show the last significant volumes from that well were in December. March production figures from the commission show Kenai Loop averaged 2.3 million cubic feet per day.
AIX said it will "evaluate the cost/benefit of tying in KL 1-4 to the production system to provide increased deliverability, to provide redundancy to meet firm gas sales obligations and to possibly increase ultimate recovery." The company will also evaluate recompleting wells for additional deliverability. A map accompanying the application shows KL 1-4 to be east of the other wells.
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