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Hilcorp surrenders Ivan River storage
ERIC LIDJI For Petroleum News
Hilcorp Alaska LLC has surrendered its natural gas storage lease at the Ivan River unit.
The local subsidiary of the Texas-based independent surrendered ADL 391556 in September, effective July 31, 2015, according to the Alaska Department of Natural Resources. In 2012, after Hilcorp identified damage at the IRU 44-36 injection well, the state agreed to suspend the storage operations at the Ivan River unit. In a recent plan of development, Hilcorp said it “recognizes the importance of gas storage facilities in Cook Inlet” and was continuing to evaluate options for converting or reactivating the well.
The storage lease covers 863 acres and the storage operation was confined to the Beluga 71-3 Gas Sands, which were associated with the sole storage well, IRU 44-36. In its request to relinquish the storage lease, Hilcorp told the state that neither it nor predecessors had used the well for its intended purpose because of “mechanical problems.” That said, Hilcorp believes that the well “has future utility as a unit asset.”
Cook Inlet leases surrendered In other leasing news, Alaska LLC surrendered five offshore Cook Inlet leases. The five leases - ADL 391857, ADL 391858, ADL 391859, ADL 391866 and ADL 391867 - were between the ConocoPhillips-operated North Cook Inlet unit and the village of Tyonek. Alaska LLC was a 62.5 percent working interest owner in the leases, with three individual investors holding 12.5 percent. The leases would have expired in August 2019.
A collection of small investors has asked the state for permission to transfer small royalty interests in two leases - ADL 378114 and ADL 374002 - at the offshore Redoubt Shoal unit. The proposed royalty interests are all in values of less than 1 percent.
Hayden McIlroy has asked the state for permission to transfer a 0.75 percent royalty interest in lease ADL 391094 to Hayden McIlroy Trust. The lease is operated by AIX Energy LLC and is associated with the Kenai Loop gas field near the city of Kenai.
On the North Slope, the state terminated two offshore leases on the western coast of the Arctic National Wildlife Refuge for failure to pay rent. The state terminated the Sun-West Oil & Gas Inc.-operated ADL 391370 and Daniel Donkel-operated ADL 391371.
The neighboring leases were in state waters of the Beaufort Sea near the mouth of the Aichilik River. The two leases were both set to expire at the end of August 2019.
—A copyrighted oil and gas lease map from Mapmakers Alaska was a research tool used in preparing this story.
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