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Providing coverage of Alaska and northern Canada's oil and gas industry
September 2025

Vol. 30, No.38 Week of September 21, 2025

Happy Valley plan filed

Hilcorp Middle Pad natural gas exploration lease operations plan to DNR

Kay Cashman

Petroleum News

The Alaska Department of Natural Resources' Division of Oil and Gas issued a public notice on Sept.9 regarding Hilcorp Alaska's Happy Valley Middle Pad natural gas exploration lease plan of operations.

On Sept. 3, the division received the application requesting authorization to build new gas production infrastructure on State of Alaska, or SOA, land on the Kenai Peninsula near Ninilchik.

The project start date is Oct. 20, with the end date sometime in April 2026.

Per the public notice Hilcorp proposes to construct a new 300-by-400-foot gravel pad and a 26-foot-wide, 3-mile-long gravel access road; drill two grassroots wells from the new pad; and install associated production infrastructure.

This project is anticipated to include the following: gas flowlines, electrical instrumentation, line heaters, separators, compressors, a communication tower, well cellars, and conductors as needed.

The wells will be drilled from the new Happy Valley Middle Pad. One freshwater well will also be drilled to support drilling operations.

Hilcorp Rig 169 or Rig 147 will be used for drilling and well completion activities.

Major equipment components include the following: Drill rig and pipe, boilers,

mud tanks/mud pumps, rig generator, work trailers for supervisory staff and support staff, and light plants.

Hilcorp may use additional support equipment for infrastructure installation, which may include, but is not limited to, an excavator, mini excavator, super sucker, zoom boom, and weld truck.

Drilling will be a 24-hour operation, with a trailer staged on the pad to house various supervisory personnel and a minimum number of support personnel

The project is intended to advance the ongoing development of natural gas resources in the surrounding region.

The bonding requirement for the project is satisfied through Hilcorp's Financial Assurance Agreement with DNR

The application was signed by Hilcorp environmental specialist Stetson Sannes.

Comments

The application package is available for review at the division's permitting section, 550 West 7th Ave., Suite 1100, Anchorage, AK 99501 or online at http://dog.dnr.alaska.gov/Newsroom Comments can be emailed to [email protected], or to the address above.

All comments must be in writing.

A copy of the final decision will be sent to any person who provided written

comments. An eligible person affected by this decision may appeal or request the DNR commissioner's reconsideration in accordance with 11 AAC 02.

All comments must be received by the comment deadline: 4:30 pm, Alaska Daylight Time, Oct. 13, 2025.






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