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Hilcorp permits new well at Cannery Loop
2024 plan of development for gas field shows grassroots well planned; 2 others could follow depending on results from CLU-16
Kristen Nelson Petroleum News
In the 45th plan of development for the Cannery Loop unit, submitted to the Alaska Department of Natural Resources' Division of Oil and Gas May 1, Hilcorp Alaska said that pending results from the CLU-16 grassroots well, it could drill additional wells, all targeting the Lower Beluga sands.
Cannery Loop is a small gas field north of the Kenai gas field. In March, the most recent month for which Alaska Oil and Gas Conservation Commission production data are available, Cannery Loop accounted for 2.4% of Cook Inlet natural gas production and had five wells in production; the field averaged just under 5 million cubic feet per day in March.
Hilcorp has been the operator at the field since it acquired it from Marathon in 2013.
AOGCC records show the agency permitted the Cannery Loop Unit 16 well March 28.
2023 POD Cannery Loop PODs cover Aug. 1 through July 31.
In the 2023 calendar year, Hilcorp said Cannery Loop production average 5.45 million cubic feet per day, with total production during the year of 1.99 billion cubic feet.
There were two wellwork projects during the 2023 POD.
In December perforations were added in the CLU 14 well to the Upper Beluga 3A and 4 zones, producing an additional 100 thousand cubic feet per day. Also in December, a velocity string was run in the CLU 01RD, resulting in an additional 100 mcf per day of gas "and observed stabilization in production rate," the company said.
2024 POD For the 2024 POD, Aug. 1 through July 31, 2025, Hilcorp said that pending results of the proposed CLU-16 well, "additional drill wells will be evaluated for continued development of Lower Beluga sands."
The company said up to two additional grassroots wells could be drilled, with well names and locations to be determined, based on CLU-16 results.
Various rig and non-rig well projects during the 2024 POD period may include:
*Preparations for potential sidetracks;
*Coil tubing cleanout operations;
*Perforations of additional gas sands; and
*Plugs or patches for potential water shutoffs.
Hilcorp said it would evaluate additional well work opportunities as they arise.
The potential grassroots wells could require a pad expansion at the CLU 1 Pad, depending on subsurface locations of those potential wells, the company said, "and/or additional compressor capacity" at the CLU 3 Pad.
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