Hilcorp continues strong Milne Point drilling plans in new POD
 Click here to go to the full PDF version of this issue, with any maps, photos or other artwork that appears in
some of the articles.
Kristen Nelson Petroleum News
Hilcorp has been growing Milne Point production since it took over as operator (with a 50% working interest ownership) from BP Exploration (Alaska) in 2014.
The company, which acquired the remaining 50% interest in Milne with its purchase of BP Exploration (Alaska) assets in 2020, continues to grow production. This growth is reflected in the 43rd plan of development which the company filed with the Alaska Department of Natural Resources' Division of Oil and Gas in mid-October.
In its recent PODs Hilcorp has reported average production per day for the calendar year to date based on when the POD is submitted -- Jan. 1 through Sept. 30 for PODs submitted in mid-October.
For the POD submitted in 2021, production averaged 35,757 barrels per day; for the 2022 POD, the average was 37,466 bpd, up 4.78% from the previous year. In 2023 the average was 39,944 bpd, up 6.61% from the previous year, and the most recent POD, using 2024 volumes, shows an average of 43,474 bpd for that same period, up 8.84%.
43rd POD Milne produces from the Kuparuk reservoir in the Kuparuk participating area, the Schrader Bluff reservoir in the Schrader Bluff PA and the Sag River reservoir in the Sag River PA. There are also multiple wells on tract operation production.
In the 43rd POD, Jan. 13, 2025, through Jan. 12, 2026, Hilcorp said it anticipates drilling 19 rotary wells, with 18 potential candidates in the Schrader Bluff formation -- half producers, half injectors -- and one in the Kuparuk producer.
The company also expects to do coiled tubing drilling operations on three wells.
It will continue to use the ASR1 rig for well work and workovers "as required to maintain and enhance production."
Major facility projects include H Pad power fluid separation; return gas injection to F and L pads through existing gas injection lines; L and H pad polymer expansion; return water injection to K Pad; CFP A train internals upgrade; and CFP PL 5 upgrade.
Long range the company said it continues to evaluate additional Schrader Bluff drilling opportunities; evaluate performance from the existing S-203 and planned S-204 Ugnu wells to help determine future Ugnu development; evaluate infill drilling opportunities in the Kuparuk formation; and target facility upgrades to increase the production capacity of the unit.
42nd POD In the 42nd POD Hilcorp said it originally anticipated drilling 20 wells, and then amended that to 24, with the majority Schrader Bluff wells, and two Kuparuk formation wells and two Ugnu formation wells being considered.
The company said in its Oct. 14 POD submittal that it has drilled 16 of the wells with an additional six anticipated to be completed by the end of the POD period Jan. 12.
Fifteen of the wells drilled to date are in the Schrader Bluff formation, seven producers and eight injectors, with an additional five -- four producers and one injector -- anticipated to be completed by the end of the 42nd POD.
One Kuparuk formation well was drilled, a horizontal producer, and one Ugnu well was anticipated to be drilled by the end of the POD period.
Hilcorp said it anticipated coiled tubing drilling operations on six wells and six, five producers and one injector, were drilled.
There were no planned workover operations, but 20 workovers were completed with an additional 12 planned before the end of the POD period.
Hilcorp said not all of the facility projects anticipated during the 42nd POD have been completed, but two -- E Pad power fluid separation and reactivation of the D Pad transmission line to B Pad -- are expected to be completed before the end of the POD period, while two others are expected to be initiated during the 42nd POD and continued through the 43rd POD -- H Pad power fluid separation and return of gas injection to F and L pads through existing gas injection lines.
Three unanticipated projects were begun under the 42nd POD and will be completed before the end of the period: Solar Titan 130 power generation install at L Pad; CFP B-Train internals upgrade; and J Pad polymer injection expansion.
Operations that deviated from or did not conform to the 42nd POD include R Pad Drillsite construction; CFP 3rd train oil separation; Solar Titan 130 power generation install at L Pad; CFP B Train internals upgrade; and J Pad polymer injection expansion.
--KRISTEN NELSON
| 