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

Vol. 25, No.19 Week of May 17, 2020

PODs approved for 3 small inlet gas fields

Kristen Nelson

Petroleum News

The Alaska Department of Natural Resources’ Division of Oil and Gas has approved the annual plans of development filed by operator Hilcorp Alaska for three small Cook Inlet natural gas units: Ivan River, Lewis River and Pretty Creek.

All three PODs were filed in late February and all cover June 1 through May 31, 2021.

The division said the plans were “received before major disruptions of business activities due to the Coronavirus pandemic” and said it recognizes that due to “global and local impacts of the pandemic” the operations described may not be completed during this plan period. The division said it will support Hilcorp in “any plan changes necessary to protect the health, safety, and welfare of operations personnel, the physical and economic integrity of the facilities and preservation of the surrounding environment.”

The division did, however, ask that for all three units the company provide additional information in subsequent PODs: a table showing the status of all wells, including those that are shut-in; “and a description of and all substantive information regarding the work or projects under evaluation by Hilcorp” even if final decisions have not been made on the work. The division said the information would benefit both Hilcorp and the division “as it will provide the basis for practical and essential discussion for purpose of evaluating and reviewing the proposed” plan of development.

No long-range development plans

The division said 2019 cumulative production from Ivan River was 146.7 million cubic feet, down from 184.9 million in 2018. Hilcorp has no specific long-range development plans for Ivan River. It is planning to maintain production from the Sterling-Beluga and Tyonek participating areas at the unit.

At Lewis River, the division said 2019 cumulative production was 185.6 million cubic feet from the Lewis River Unit Pool 2, a 28% increase from 2018. Hilcorp reported adding perforations on the LRU C-01RD, work which was not in the approved 2019 POD. As with Ivan River, the division said Hilcorp has no specific long-range activities planned at Lewis River.

At Pretty Creek, Hilcorp reported 2019 production of 47.3 million cubic feet, all from the Beluga River participating area. The company continues to use the Pretty Creek storage lease for gas storage operations, plans to continue production from the Beluga River participating area and has no specific plans for exploration, delineation or major facility upgrades, although the company did tell the division it would evaluate shut-in wells to determine their potential for returning to service or utility.

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