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

Vol. 30, No.22 Week of June 01, 2025

Granite Point, Trading Bay PODs approved

Well at Granite Point unit deferred as jack-up contracted to Furie; was in 2024 POD, now in 2025 POD, targets Tyonek formation gas

Kristen Nelson

Petroleum News

2025 plans of development for Hilcorp Alaska's Granite Point and Trading Bay units, both offshore in Cook Inlet, have been approved by the Alaska Department of Natural Resources' Division of Oil and Gas. The approvals were signed May 20 by division Director Derek Nottingham and cover July 1 through June 30, 2026.

Granite Point

The division said Granite Point production began in 1965; through March 31, 2025, the unit produced 145.6 billion cubic feet of natural gas and over 160 million barrels of oil.

Hilcorp took over as operator from Union Oil Company of California on Dec. 29, 2011.

In calendar year 2024 the company produced 755,200 barrels of oil and 1.108 billion cubic feet of gas.

South Granite Point was expanded in early 2015 to include the Granite Point field and renamed the Granite Point unit. There are six offshore state oil and gas leases, some 15,411 acres.

There are two participating areas: the Hemlock PA and the Granite Point Sands PA.

There are three platforms: Anna, Bruce and Granite Point.

Granite Point PODs

A grassroots well from the Bruce Platform included in the 2024 POD was scheduled to be the first use of the Spartan 151 jack-up this drilling season, but the jack-up was contracted to Furie, the division said, "delaying the Bruce Platform grassroots gas development well to later in the 2025 drilling season." The division said Hilcorp notified it of this change of plans in mid-March.

Hilcorp did various rig and non-rig well projects during the 2024 POD, including:

*Rig workovers on AN-17A and BR 03-87 to pull existing completions, isolate oil pool and perforate intervals in the Granite Point gas pool;

*Non-rig repair of shallow tubing leak in the AN-33;

*Reperforation of existing oil interval in AN-15; and

*Non-rig intervention to increase gas production on BR 09-86.

Various jet pump changeouts were done to optimize production from Granite Point Platform wells and "Hilcorp prepared the Bruce Platform for potential gas sales by installing surface equipment for gas production and tying it into the current production system," the division said.

The 2025 POD includes:

*Grassroots well from the Bruce Platform targeting a potential gas accumulation in the Tyonek formation;

*Continuing evaluation of "production facility and pipeline capacity constraints to optimize deliverability of gas between existing platforms and the Granite Point Tank Farm, if commercial volumes of gas are discovered during drilling of the grassroots gas development well";

*Evaluation of additional rotary development wells;

*Various non-rig activities -- coil cleanouts, adding perforations; and

*Required regulatory inspections.

Trading Bay

In its POD approval the division said the Trading Bay unit was formed in 1967, with sustained production beginning that year. There are four participating areas in the McArthur River field: Hemlock oil pool; West Foreland oil pool; Middle Kenai "G" oil pool; and Grayling gas sands.

Hilcorp was approved as successor unit operator Jan. 3, 2012. A second unit expansion was approved in 2013, which included the Trading Bay field in the Trading Bay unit.

As of the end of March, the Trading Bay field has cumulatively produced 111 million barrels of oil and 91 billion cubic feet of natural gas, while the McArthur River field has cumulatively produced 661 million barrels of oil and 1.556 trillion cubic feet of gas.

In calendar year 2024 the Trading Bay field, producing from the Monopod Platform, produced 323,000 barrels of oil and 302 million cubic feet of gas, and the McArthur River field produced 864,000 barrels of oil and 4,275 million cubic feet of gas.

Alaska Oil and Gas Conservation Commission data show McArthur River is currently the inlet's most productive oil producer and among the top half dozen most productive gas fields with production from the Dolly Varden, Grayling, King Salmon and Steelhead platforms.

Trading Bay PODs

For the 2024 POD, Hilcorp planned two grassroots wells from the Steelhead Platform, M-23 and M-24. The division said the M-23 was drilled, targeting the Grayling gas sands, but Hilcorp was unable to test it due to liner cementing issues, and as a result, drilling of M-24 was deferred.

Hilcorp completed several rig workovers to repair or replace failed ESPs, although the K-17 ESP replacement was not completed due to discovery of poor injectivity in the well, the division said.

Multiple non-rig operations were completed to clean out, stimulate or add perforations, and Hilcorp set plugs to isolate oil to flow test Grayling gas sands. Hilcorp installed deep gas lifts on two wells and converted the A-12RD from an injector in the Middle Kenai C to a producer in the Middle Kenai B.

The division said the Grayling Platform simplification was completed and the Steelhead Platform simplification was deferred for additional engineering evaluations. Surface facility operations also included repairing a fuel gas line near the Dolly Varden Platform and replacing fuel gas and oil risers on that platform.

The 2025 POD includes:

*Continuing build of an inventory of development projects;

*Rig and non-rig activities as needed; with at least 10 well interventions projects expected; and

*Conducting Steelhead Platform oil simplification project.






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