Hilcorp gets two Kalotsa permits

Hilcorp Alaska LLC has received drilling permits for two Kalotsa wells, which would be the first development wells planned for its new Kalotsa drilling pad at the Ninilchik unit.

The Alaska Oil and Gas Conservation Commission issued final drilling permits to Hilcorp for the Kalotsa No. 1 well on Nov. 23 and the Kalotsa No. 2 well on Dec. 1.

The local subsidiary of the Texas independent initially proposed the Kalotsa program in an updated plan of development submitted to the state Division of Oil and Gas in October 2014. The plan called for a two-well exploration program - Kalotsa No. 1 and Kalotsa No. 2 - at a new drilling pad to be built between the existing Susan Dionne and Paxton pads. The company said the wells would target the Tyonek and Beluga formations. In its 2015 plan of development, Hilcorp described Kalotsa No. 1 as a development well.

Hilcorp began permitting the Kalotsa pad last summer, but unspecified “permitting issues” delayed construction of the pad into 2016. The company resumed its efforts this past summer, announcing a four-well development program at the Kalotsa pad.

According to those filings, the company expected late summer construction of the drilling pad to be far enough along to drill the first well as early as November 2016, the second well in February 2018 and the remaining wells at undetermined dates after 2018, although the timing of the three latter wells would depend on the results of the first well.

- ERIC LIDJI