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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2024

Vol. 29, No.19 Week of May 12, 2024

Ninilchik drilling shift?

Hilcorp considering Clam Gulch well after concentrating on southern end of unit

Kristen Nelson

Petroleum News

Hilcorp Alaska has been actively expanding natural gas production from its Ninilchik unit on the Kenai Peninsula, taking the field from annual production of 11.1 billion cubic feet in 2021 to 13 bcf in 2022 and 15.8 bcf in 2023.

Exploration and drilling have recently been focused at the southern end of the unit, with the unit- s five 2023 wells completed there according to Alaska Oil and Gas Conservation Commission records, which currently show no Ninilchik well completions in 2024. The 2023 wells include two exploration wells, Pearl 8 and Pearl 9, and three development wells, Pearl 10, Pearl 11 and Paxton 12.

AOGCC production data for March, the most recent available, show volumes from the Pearl and Paxton pads, the most southerly at Ninilchik, accounted for 53.6% of the field- s volume, with Pearl 9 the field- s most productive well by a wide margin, accounting for 14% of Ninilchik production for the month.

In the 20th plan of development for the unit, which Hilcorp submitted to the Alaska Department of Natural Resources- Division of Oil and Gas May 1, the company does list a potential development well at the southern end of the unit as under evaluation for the 2024 POD period, which runs from Aug. 1 through July 31, 2025.

But the only exploration well which the POD shows as being evaluated for 2024 is at Clam Gulch, described by Hilcorp as targeting a 'perspective gas target' in the northern-most part of the unit.

2023 POD

In the company- s 2023 POD, covering Aug. 1, 2023, through July 31 this year, Hilcorp listed potential exploration/delineation work as adding perforations to its Blossom 1 well, drilled in 2015 but not in production, and a possible additional one to three wells in the Pearl structure, based on results from Paxton 12, Pearl 10 and Pearl 11. The additional wells would have been Pearl 12, Pearl 13 and Pearl 14, but none of those wells have yet been permitted according to AOGCC records.

Hilcorp said adding perforations to the Blossom 1 well did not occur in the 2023 POD and is now included in the 2024 POD. The company did not discuss the proposed Pearl wells, except to say that it "did not drill or complete any development drill wells during the 2023 POD period."

The 2023 POD also said the company was evaluating a potential new drill pad between the Paxton and Pearl pads and an additional Pearl Pad expansion, once again depending on results from the Paxton 12, Pearl 10 and Pearl 11 wells.

The most recent AOGCC production data, for March, shows all three of those wells on production.

While Hilcorp did not drill the additional Pearl wells, it reported an extensive workover program, including rig and non-rig well projects including:

*Adding perforations to the Grassim Oskolkoff 8 -- a project completed at the end of the 2022 POD period;

*Installing capillary string in the Pearl 2A;

*Adding perforations to the Pearl 8:

*Patching wet sand and adding perforations to the Paxton 12;

*Adding perforations to the Kalotsa 4;

*Returning to production with tubing swap and new perforations and installing capillary string at the Paxton 7;

*Adding perforations at the Paxton 12:

*Adding perforations at the Kalotsa 8:

*Returning to production with new perforations the Paxton 6;

*Adding perforations at the Paxton 3;

*Adding perforations at the Kalotsa 6;

*Adding perforations at the Susan Dionne 6;

*Adding perforations at Paxton 2; and

*Adding perforations at Pearl 11.

Reporting on surface work, Hilcorp said it completed installation of a compressor at the Pearl Pad.

Work continues on converting the Susan Dionne 8 to a Class II disposal well.

2024 POD

Exploration/delineation plans in the 2024 POD include:

*Adding perforations and flow testing the Blossom 1; and

*Evaluating an exploration well at Clam Gulch to assess "perspective gas target in northern-most part of the Ninilchik Unit."

On the development side, Hilcorp said it is evaluating a well in the Paxton structure during the 2024 POD period targeting "prospective deep gas."

The workover program includes:

*Completing regulatory work required to convert the Susan Dionne 8 to a Class II disposal well. If approvals are obtained, "disposal operations will be completed during the 2024 POD period."

*Adding perforations at the Pearl 10.

*Pulling patch, fill clean out and adding perforations at the Kalotsa 1.

Hilcorp said it continues "to evaluate the utility of adding velocity strings and/or other artificial lift options in various wellbores to enhance production."

Potential surface work includes:

*Additional compression at Paxton Pad will be evaluated pending decision to drill a development well from Paxton Pad "along with continued performance trends of Paxton 6 and Paxton 12."

*Injection equipment for Susan Dionne 8 -- this is pending approval of conversion of the well to a Class II injection well.






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