On Oct. 29, Derek Nottingham, director of the Division of Oil and Gas, part of the Alaska Department of Natural Resources, approved Hilcorp Alaska's application to expand the Seaview unit from 2,956 acres to approximately 5,885 acres, an expansion of some 2,929 acres.
The application for the expansion was filed on Feb. 2, 2025, and a revised application on Aug. 6, 2025.
The Seaview unit is located on the Kenai Peninsula approximately 13 miles northwest of Homer, Alaska. The prospect consists of an asymmetric anticline bounded on the west by a high-angle reverse fault.
Prior exploration in the region includes the following five other exploration wells drilled from 1962 to 2006; Socal Anchor Point #1 (TD 14,705 ft MD), Unocal Grinner 1 (TD 6,880 ft MD), Aurora Endeavor 1 (TD 9,225 ft MD), Seaview 8 (TD 10,500 ft MD) and Seaview 9 (TD 7,749 ft MD), all of which were discussed in the original Seaview unit application.
The division approved the original Seaview unit effective Oct. 7, 2020. Since then, Hilcorp has drilled three more exploration wells in the proposed Seaview unit expansion area from 2021 to 2024.
The Whiskey Gulch 1 well, drilled in 2021, is a directional exploration well targeting oil and drilled into the West Foreland formation (to a total measured depth of 10,271 feet). Rotary sidewall core samples were collected. Although the exploration for oil was unsuccessful, a shallow gas sand in the Tyonek was tested and is productive for gas.
A public AOGCC well test history reported 14.67 MMSCF from Feb. 17 to Feb. 21. The well was shut in until facilities and pipelines could be installed.
The Whiskey Gulch 14 well was directionally drilled in 2022 through the Tyonek formation to a measured depth of 8,013 feet.
The Whiskey Gulch 15 well was also drilled directionally to a shallower measured depth of 6,390 feet into the Tyonek formation.
Hilcorp submitted confidential geological, geophysical, and engineering technical data and interpretations in the form of well data, petrophysical analysis, structure grids from seismic interpretation, and production analysis in support of the requested expansion. Hilcorp mapped the area using airborne gravity gradiometry, magnetic surveys, geologic field work, stratigraphic test wells, and 2-D seismic data.
The proposed Seaview unit expansion area encompasses the lowest known gas encountered in the three exploration wells.
Division's conclusion
A unit must encompass the minimum area required to include all or part of one or more oil or gas reservoirs, or all or part of one or more potential hydrocarbon accumulations." 11 AAC 83.356(a).
Hilcorp has submitted confidential geological, geophysical, and engineering data, which demonstrate that the area approved for unitization includes all or part of a gas reservoir and potential hydrocarbon accumulations.
Division staff evaluated data provided by Hilcorp to determine if the proposed unit expansion area met those criteria. The data are confidential and therefore are not discussed in detail in the Oct. 29 decision.
The division's evaluation of the subsurface geological, geophysical, and engineering data provided supports the configuration of the unit expansion area as proposed, Nottingham wrote in his decision.
SUBHEAD Plans of exploration
Hilcorp submitted an initial unit plan of exploration, or POE, as part of the application, and met with the division for a technical presentation on Oct. 9, 2025.
In the POE, Hilcorp proposes to drill one exploration well.
The division approved the proposed POE, effective as of the date of this decision, Oct. 29.
In accordance with 11 AAC 83.343 and as outlined in Section IV, Hilcorp will submit an annual plan of development, or POD, on May 2, 2026.
The division approved previously the Seaview unit 6th POD (effective July 2, 2025) for the period Aug. 1, 2025 through Oct. 7, 2025.
For the 6th POD period, Hilcorp committed to the following operations:
* Evaluate the potential to drill a well at Seaview to test a potential structural high to the North;
* Evaluate adding additional perforations in the Seaview #9 and Seaview #8 wells;
* Evaluate the potential for data collection and CBM testing at Seaview #8 or #9 wells; this may include conducting a workover, perforations, injectivity test and production assessments; and
* Pursue facility improvements through various well, infrastructure and facility, repairs as needed.
Economic costs and benefits to State
The expanded Seaview unit will provide economic benefits to the State through royalty and tax payments on production. Unitized development conducted under the Seaview unit agreement provides for development of all the unitized leases as a single lease, rather than development conducted on a lease-by-lease basis.
Unitized development maximizes oil and gas recovery, promotes conservation, prevents waste, and protects all of the parties of interest, the division said in its decision.
Appeal of decision
A person affected by this decision may appeal it, in accordance with 11 AAC 02. Any appeal must be received within 20 calendar days after the date of "issuance" of this decision and and may be mailed or delivered to John Crowther, Acting Commissioner, Department of Natural Resources, 550 W. 7th Avenue, Suite 1400, Anchorage, Alaska 99501; faxed to 1-907-269- 8918, or sent by electronic mail to [email protected].
This decision takes effect immediately. An eligible person must first appeal this decision in accordance with 11 AAC 02 before appealing this decision to Superior Court. A copy of 11 AAC 02 may be obtained from any regional information office of the Department of Natural Resources.
questions regarding this decision: contact Mark Villarreal with the division at 907-269- 8799, or by email at [email protected].
-KAY CASHMAN
