Hilcorp permitting Greystone pad

Hilcorp Alaska LLC is permitting an exploration project in the southern Kenai Peninsula.

If the subsidiary of the Houston-based independent proceeds with the project, it would be the first exploration venture for the company outside of its existing units in Alaska.

The proposed Greystone pad would be on Cook Inlet Region Inc. leases between the Deep Creek and Nikolaevsk units, which are both producing fields operated by Hilcorp.

To date, Hilcorp has focused almost exclusively on development since arriving in Alaska and has only pursued exploration opportunities within existing units when required to retain acreage. That approach has yielded wells at the Deep Creek and Ninilchik units.

A public notice from the Alaska Department of Environment Conservation said Hilcorp would begin construction on Greystone in the second quarter and drill at least one well.

- ERIC LIDJI