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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2020

Vol. 25, No.29 Week of July 19, 2020

Hilcorp plans drilling at Beluga, Kenai

Company tells BLM production maintenance goal at both fields

Kristen Nelson

Petroleum News

Hilcorp Alaska plans development drilling in both the Kenai and Beluga River units during plan periods from April 1, 2020, through March 31, 2021, the company told the U.S. Bureau of Land Management in plans of development submitted March 2.

The Kenai gas field is on the Kenai Peninsula while Beluga River is on the west side. Both are onshore fields.

Beluga

The Beluga POD is the 58th for the field.

Hilcorp said it plans two to three grassroots wells in the 2020 POD period using rig 169, each targeting the Sterling and Beluga gas sands. The company has already applied to the Alaska Oil and Gas Conservation Commission for spacing exceptions for two wells, BRU 241-34T and BRU 212-26. BRU 241-34T requires a spacing exception because the gas development well is within the same governmental section and within 3,000 feet of a well that is, or may be, capable of producing from the same pool, AOGCC said in a public notice.

A spacing exception is required for BRU 212-26 because that gas development well is within 1,500 feet of a property line where owners are different on both sides of the line, and also within 3,000 feet of a well that is, or may be capable of producing from the same pool.

When the wells would be drilled within the POD period is not indicated.

Hilcorp also said it anticipates several workovers at Beluga with Rig 401, with that work being evaluated and planned for execution in the second and third quarters of 2020.

Kenai

At the Kenai gas field, where the 2020 POD is the 62nd for the field, Hilcorp said it plans to drill KU 24-32 from the Kenai Unit Pad 34-31 targeting the Upper Tyonek and Beluga formations. The rig is not named.

Several uphole recompletions, perforation adds and rig workovers are planned for Kenai, the company said, along with routine repairs and replacement of facilities as needed to maintain and increase field production and operations.

Hilcorp owns and operates a grind and injection well in the Kenai gas field for Kenai unit operations, with G&I wells authorized by the AOGCC and the solid waste cell authorized by the Alaska Department of Environmental Conservation.

Hilcorp said it is in the process of re-permitting two injection wells from Class II to Class I injection wells, with approval anticipated during the 2020 POD period.

Large gas fields

Beluga and Kenai are large Cook Inlet basin gas fields. In May, the latest month for which production volumes are available from AOGCC, the Beluga River field averaged 17,692 mcf per day, while Kenai, in that month the most prolific gas field in the inlet, averaged 32,489 mcf per day.

During the 2019 POD Hilcorp did nine workovers at Beluga with a coil tubing unit. The company said overall results were “subpar.” BRU 214-35 was returned to production with a perforation added to the Sterling A sands.

Hilcorp also conducted routine repairs and replacements at Beluga during the 2019 POD.

Cumulative gas production from Beluga was 9,668.6 million standard feet during the 2019 POD period, Hilcorp told BLM. There were 16 active wells during the 2019 POD, with annual production ranging from 3 million cubic feet to 1,305 million cubic feet.

At the Kenai unit, 2019 POD period cumulative production was 11,546.9 million standard cubic feet from non-storage wells. Hilcorp drilled the KU 24-05B well from Kenai unit pad 41-07, completing the well in August 2019 in the Tyonek D4, D3 and D2 sands.

Hilcorp did not indicate the number of active wells during the 2019 POD period, but AOGCC production data for May show 30 wells at the field with gas production for the month.






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