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Hilcorp plans 2 new wells at Paxton Pad Ninilchik began production in September 2003 and to date has produced 300 billion cubic feet of gas from 10 pads on the south Kenai Kristen Nelson Petroleum News
Hilcorp Alaska is planning two grassroots wells and associated infrastructure at the existing Ninilchik unit Paxton Pad.
Paxton is one of the most southerly of the 10 pads at Ninilchik, which follows the coast of the Kenai Peninsula from south of Kasilof to north of Ninilchik.
The Alaska Department of Natural Resources' Division of Oil and Gas said in a Jan. 27 unit plan of operations amendment decision that work at the Paxton Pad would include drilling the Paxton 14 and Paxton 15 wells and installing associated infrastructure required to tie the wells into existing Paxton Pad production facilities. Infrastructure will include: gas flowlines, electrical instrumentation, line heaters, separators, compressors, and well cellars and conductors.
The division said the pad is within the boundaries of the Ninilchik unit some 4 miles northeast of Ninilchik on privately owned surface and subsurface lands.
In December, the most recent month for which Alaska Oil and Gas Conservation Commission production data is available, the Paxton Pad produced 308,007 thousand cubic feet, mcf, of gas, 36% of the field's 852,151 mcf. Twelve wells were in production at the pad in December, with one well shown as shut-in.
Earliest production drilling at the pad was in 2004.
Development by Marathon, Unocal Ninilchik was developed in the early 2000s by a partnership of Marathon Oil Co., the unit operator, which held 60% interest, and Unocal Alaska with 40%.
The companies announced discovery of a new natural gas reservoir in January 2002 with the drilling of the Grassim Oskolkoff No. 1 35 miles south of Kenai, the first exploration well drilled under a joint operating agreement between the companies in the 25,000-acre Ninilchik exploration unit. Marathon estimated 60 billion cubic feet of gross proven recoverable gas reserves and Unocal acquired additional separate prospects and estimated a net unrisked resource potential at Ninilchik and its additional prospects between 100 billion and 600 billion cubic feet.
AOGCC production data show cumulative production of 300 billion cubic feet through the end of calendar year 2025.
Pipeline needed The division said in 2003 that 14 exploration wells were drilled on the Ninilchik anticline in the late 1950s, with recent work in the area spearheaded by Marathon which began drilling in the area in 1996 at Corea Creek No. 1.
But a pipeline connection was required.
The companies told the Regulatory Commission of Alaska Jan. 16, 2002, that they planned to order pipe for the Kenai-Kachemak Pipeline in June, geared to meet a Jan. 1, 2004, date for gas to be delivered to Enstar. Subsidiaries of Marathon and Unocal own the pipeline, which started its open season -- asking for expressions of interest in contracting for pipeline space -- in late 2001.
Construction of the 32-mile, 12-inch diameter Kenai Kachemak Pipeline began in January 2003.
Marathon and Unocal announced official startup of the Ninilchik unit on Sept. 10, 2003, with gas moving through the recently completed pipeline.
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