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

Vol. 29, No.48 Week of December 01, 2024

Hilcorp submits PODs for small fields

One well completed over summer at Duck Island, work continues on second; POD shows no recent or planned drilling at Northstar

Kristen Nelson

Petroleum News

Hilcorp Alaska submitted plans of development Nov. 12, with revised versions Nov. 20, for its two smallest North Slope fields. The POD for the Duck Island unit -- also known as Endicott -- was submitted to the Alaska Department of Natural Resources' Division of Oil and Gas. The POD for Northstar, which contains state and federal leases, was submitted to the division and to the U.S. Department of the Interior's Bureau of Safety and Environmental Enforcement.

Both PODs are for Feb. 13, 2025, through Feb. 12, 2026.

These fields, along with Prudhoe Bay, report both crude oil and natural gas liquids production.

Duck Island

The new Duck Island POD is the 43rd for the unit, which has production from the Kekiktuk reservoir in the Endicott participating area; the Ivishak and Sag River reservoirs in the Eider PA; and the Sag River reservoir in the Minke tract operation.

In the previous POD, the 42nd, Hilcorp had anticipated drilling up to one grassroots well with the possibility of the second, contingent on results from the first.

Alaska Oil and Gas Conservation Commission records show the MPI 2-72 was completed in June, while work on the MPI 2-74 was continuing.

One sidetrack, the MPI 1-17B, was anticipated, but not drilled. Hilcorp said the net profit share lease in the Sag Delta North PA "does not make sidetracking this well economic" and said it was working with the division to address the issue.

Three rig and non-rig wellwork projects were completed during the 42nd POD, along with a number of surface facility operations: a debottlenecking, corrosion reduction, plant stability project; module leveling, Endeavor island repair; MPI 2-72 and MPI 2-74 facility tie-in; three-phase pipeline repair; and inter-island gas line sleeve repair; a 3-inch LACT meter upgrade was ongoing.

During the 43rd POD Hilcorp listed two long-range development activities: convert LSZ of Kekiktuk to gravity drainage; explore remaining Kekiktuk, Ivishak and Alapah opportunities.

No grassroots wells or sidetracks are planned, but the company does plan up to two rig workover operations, with additional workovers as needed and various non-rig wellwork operations.

Facility projects planned for the 43rd POD include inspecting bridges, continuing 3-inch LACT meter upgrade and module leveling.

In September, the most recent month for which AOGCC production data are available, Duck Island averaged 4,168 barrels per day, 3,964 bpd of crude, 95.1% of the production, and 204 bpd of NGLs, 4.9%.

Northstar

In the previous, 20th POD for Northstar, no wells or sidetracks were planned or drilled. Hilcorp did two rig and non-rig related wellwork projects. The company completed planned surface facility operations: modified surface equipment to allow produced water to be routed to NS-20 in support of water injection, work which the company said it expected to complete by the end of the 20th POD period. It also continued ongoing repair of the island's coastal defenses.

It did not complete expanding the existing gas lift system to allow placing additional wells on gas lift, based around the NS-20 well, where a temporary setup was tested, but the company determined a permanent installation would not be economically viable and cancelled the project.

Hilcorp said it had anticipated support of the NS-19 water injection project but decided to utilize the NS-20 well instead, since NS-20 was already completed in the Kuparuk and simulating modeling indicated greater reserve recovery from that well.

For the 21st POD, long-range activities include exploring an opportunity to implement downdip water injection for pressure maintenance in the Kuparuk reservoir, reviewing potential coil tubing drilling candidates and determining "if coil tubing drilling operations are economically viable, or even mechanically feasible, on Northstar Island."

No grassroots or sidetrack drilling is anticipated; workovers will be performed as needed.

Facility operations involve continued repair of the island's coastal defenses.

AOGCC data for September show Northstar production averaged 5,159 bpd, 2,714 bpd of crude (52.6%) and 2,445 bpd of NGLs (47.4%).






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