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Up to 6 grassroots wells for Cook Inlet
Hilcorp submits 2023-24 plans of development for offshore units: North Cook Inlet, Granite Point, Trading Bay, North Trading Bay
Kristen Nelson Petroleum News
It’s going to be a busy drilling season for Hilcorp Alaska in Cook Inlet, with as many as six grassroots wells proposed for North Cook Inlet and Granite Point, and a lengthy sidetrack underway from Trading Bay reaching into North Trading Bay.
Hilcorp is using Rig 151 for North Cook Inlet and Granite Point drilling - it was mobilized to the Tyonek platform in North Cook Inlet last May. For Trading Bay drilling Hilcorp will use Monopod Rig 56.
Information is from 2023 plans of development for the units submitted to the Alaska Department of Natural Resources’ Division of Oil and Gas, all filed April 1, and all covering July 1, 2023, through June 30, 2024.
North Cook Inlet North Cook Inlet is one of Hilcorp’s most productive natural gas fields, accounting for 17% of Cook Inlet production in February, the most recent month for which Alaska Oil and Gas Conservation Commission production data is available.
Hilcorp said that during calendar year 2022 North Cook Inlet production totaled 12,169.9 million cubic feet.
During the 2022 POD, the company mobilized Rig 151 to the Tyonek platform in May and plugged and abandoned Cook Inlet State 17589. Four sidetracks were completed, all from shut-in gas wells: NCIU A-09A targeting Beluga sands west of the platform; NCIU A-10B targeting Beluga sands northeast of the platform; NCIU A-11A targeting Beluga sands north of the platform; and NCIU B-03A targeting Beluga sands southwest of the platform.
Various rig and non-rig well projects were also performed during the 2022 POD, as well as surface facility operations on the Tyonek platform.
In the 2023 POD, Hilcorp said long-range development activities include continuing “to build an inventory of future development projects, including grassroots wells, sidetracks, and workovers to increase rate and reserves, specifically focused on exploitation of potential gas resources within the Beluga and Sterling formations.”
As many as three grassroots wells are proposed, including NCIU A-17 and NCIU A-18, both targeting Beluga sands, with planned spud dates of early July for the A-17 and late July for the A-18. Hilcorp did not name a third proposed grassroots wells, but said other drilling opportunities may arise during this drilling season.
The company also plans to drill as many as two sidetrack wells, including NCIU B-01B, “sidetrack drilling via the B-01A wellbore targeting Beluga sands,” and other sidetrack opportunities which may arise.
Various rig and non-rig well projects are also planned.
On the Tyonek platform, in addition to inspections as required, the company plans Tyonek LP Compressor PLC upgrades and an inline inspection on the Tyonek riser.
Granite Point Granite Point field production for the 2022 calendar year totaled 875,600 barrels of oil and 1,267.5 million cubic feet of natural gas, Hilcorp said in its POD. Granite Point accounted for less than 2% of Cook Inlet natural gas in February, the most recent month for which AOGCC production data is available but accounted for 25% of Cook Inlet crude production in that month.
During the 2022 POD the company performed various rig and non-rig well projects including adding perforations in the C6 sands in the GP 24-13RD2 in an attempt to return that well to production.
In its 2023 POD, Hilcorp said if it finds commercial quantities of gas at planned drilling activities from the Bruce platform, it “will evaluate production facility and pipeline capacity constraints to optimize deliverability of gas between existing platforms and to the Granite Point Tank Farm.”
The company plans as many as three grassroots gas development wells from the Bruce platform targeting the Tyonek formation in the fourth quarter of the year, using Rig 151. No sidetrack wells are anticipated, but the company will evaluate current wells for various rig and non-rig projects.
Facility operations include preparation of the Bruce platform for potential gas sales pending success of the grassroots wells, and possible pipeline work.
Trading Bay Trading Bay production is from the McArthur River and Trading Bay fields. At McArthur River, Hilcorp said, it produced 1,049,000 barrels of oil and 6,592.8 million standard cubic feet of natural gas in calendar year 2022, while Trading Bay produced 311,600 barrels of oil and 431.4 million cubic feet of natural gas.
McArthur River, Cook Inlet’s most productive oil field, accounted for 31.8% of Cook Inlet crude production in February, the most recent month for which AOGCC production data is available; Trading Bay accounted for 9.2% that same month, while McArthur River produced 7% of Cook Inlet natural gas and Trading Bay produced less than 1%.
During the 2022 POD the company did a rig workover on the G-01RD, and performed various rig and non-rig related well work.
Hilcorp also did facility upgrades on the Monopod “to support gas production from the attempted sidetrack of A-10RD2.
Under the 2023 POD, Hilcorp “will further evaluate additional rotary development wells and facility optimization/simplification concepts.”
The A-10RD3 (the redrilling of the A-10RD2) will be drilled from the Monopod into the North Trading Bay unit, and, Hilcorp said, if the well is successful it will restore North Trading Bay unit production.
Those gas volumes, the company said, will satisfy the operational fuel demand for the Monopod, and “eliminate the need to transport gas to the Monopod from the Steelhead platform,” resulting in a net increase of Trading Bay unit gas sales and extending the unit’s operational life.
“After sustained production from the A-10RD3 is confirmed, Hilcorp anticipates submitting a formal proposal to DNR to merge the North Trading Bay Unit into the Trading Bay Unit.”
In addition to the A-10RD3, the company plans various rig and non-rig well projects. Facility projects are also planned on Trading Bay platforms, including Dolly Varden, Grayling and King Salmon. Monopod equipment will be repaired or replaced as needed for ongoing drilling and production.
North Trading Bay There is currently no production from the North Trading Bay unit.
Hilcorp said it attempted to drill the A-10RD2 in April 2022 “but encountered mechanical issues that prevented drilling to the target Tyonek formation within the NTBU.” A second attempt to sidetrack encountered mechanical challenges.
Hilcorp said it redesigned the sidetrack and the Monopod 56 rig began drilling March 15, with drilling expected to be completed in early May, followed by completion and production.
The current plan is a sidetrack from the parent wellbore at 5,400 feet measured depth, and drill an intermediate casing section to 14,800 feet toward the North Trading Bay unit, followed by a 6.125-inch hole to total depth of roughly 15,800 feet MD.
Hilcorp said it anticipates that production from the North Trading Bay unit will be restored by the third quarter, and said it estimates that drilling and completing the A-10RD3 will cost more than $8 million, representing “a significant investment towards the recovery of otherwise stranded NTBU reserves that cannot otherwise be recovered.”
Moving NTBU gas across the TBU boundary will require Hilcorp to pay royalties on fuel gas from the NTBU leases and once sustained production from A-10RD3 is confirmed, the company plans to submit a formal proposal to merge the NBTU into the TBU.
The company said benefits include extending Trading Bay field life and increased sales of gas from Steelhead.
There are currently two fields in the TBU, Hilcorp said, McArthur River and Trading Bay, geologically distinct structures but with a common operator and operational network. NTBU is geologically distinct, but also shares a common operator and operational network.
“If not for the proximity of TBU’s infrastructure and production facilities, and specifically the Monopod, remaining NTBU gas reserves are subject to waste,” Hilcorp said. “They cannot otherwise be economically recovered.”
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