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Division approves 3 Cook Inlet area PODs
Hilcorp owned facilities include Cannery Loop and Deep Creek, and Kenai gas field Pool 6; work covers August through July 2026
Kristen Nelson Petroleum News
Annual plans of development for three of Hilcorp Alaska's Cook Inlet area properties, two small gas fields and a gas storage pool, have been approved for Aug. 1 through July 31, 2026. In June 26 decisions the Alaska Department of Natural Resources' Division of Oil and Gas approved plans for the Cannery Loop and Deep Creek gas fields and for Kenai gas field Pool 6.
Cannery Loop Cannery Loop is a small gas field north of the Kenai gas field. The unit was formed in 1978 with Union Oil Company of California as operator. Hilcorp became the operator in February 2013 the division said.
In calendar year 2024 Cannery Loop produced 1.8 billion cubic feet of gas, down from 2.1 bcf in 2023, with an average rate of 4.9 million cubic feet per day in 2024, compared to 5.8 million in 2023.
In the 2024 POD, Aug. 1, 2024, through July 31, 2025, Hilcorp drilled a sidetrack well, CLU 10RD2. Two proposed grassroots wells were deferred as Hilcorp directed capital to drilling prospects in other Kenai fields. Hilcorp also did rig workovers on CLU 07, CLU 08 and CLU 11 in preparation for future sidetracks, the division said.
For the 2025 POD period, Hilcorp will evaluate the potential for drilling two grassroots wells and three sidetracks and do various rig and non-rig well projects.
Deep Creek Deep Creek is a small Kenai Peninsula gas field southeast of Ninilchik.
The unit was formed in 2001 and is jointly managed by the division and Cook Inlet Region Inc. The field began sustained production from the Happy Valley Participating area in November 2004, and Hilcorp began operating in January 2012. Deep Creek was contracted to the Happy Valley PA in 2019, with 16 grassroots wells and two sidetrack wells in the 1,240-acre PA.
Calendar year production in 2024 was 1.2 billion cubic feet, down from 1.38 bcf in calendar year 2023, with the average daily rate in 2024 of 3.2 million cubic feet.
In the 2024 POD Hilcorp added perforations in HVB-09, HVB-10 and HVB-17.
Hilcorp also drilled two new wells HVB-13A, which added 1.2 million cubic feet per day and HVB-18, which added 0.3 million cubic feet per day.
For the 2025 POD, the division said Hilcorp plans one grassroots well, pending sustained production results from HVB-18. The company will also evaluate drilling a sidetrack and evaluate and execute well work opportunities as they arise.
Kenai gas field Pool 6 The POD for Pool 6 in the Kenai gas field involves work on the gas storage lease.
Pool 6 was formed May 1, 2006, with Marathon Oil Co. as operator; Hilcorp took over Feb. 1, 2013.
In 2016 the division approved a request by Hilcorp to extend the lease for an additional 10 years, expiring April 30, 2026.
There are some 7,640 acres in Kenai Pool 6, 2,637.9 acres of which are owned by the state.
"The entire Pool 6 gas storage reservoir is utilized for the purpose of injecting and withdrawing previously produced gas to help meet peak utility demand during the coldest months in southcentral Alaska," the division said, with 1.8 bcf injected in calendar year 2024 and 5.9 bcf withdrawn.
During the 2024 POD, Hilcorp did not drill two additional wells or recomplete any wells, telling the division in a June 18 technical review that "the additional wells were not drilled because the capital investment for non-native storage gas was ultimately unnecessary to meet demand."
The division said Hilcorp is working on recompleting KBU 22-06Y and KU 13-06A, both of which have been perforated and are expected to be online by 2026.
The division said that in the 2025 POD, Hilcorp's long-range activities include recompleting three wells into the Pool 6 reservoir.
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