Hilcorp plans up to 7 new wells to up production at Milne's J Pad

Kristen Nelson

Petroleum News

Milne Point unit operator Hilcorp Alaska got approval May 7 to drill up to seven new development wells at Milne Point's J Pad.

The unit plan of operations amendment decision from the Alaska Department of Natural Resources' Division of Oil and Gas said work would begin with conductor installation in May, followed by drilling in June. Hilcorp plans to use Doyon 14, which will operate continuously until drilling is complete.

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Alaska Oil and Gas Conservation Commission production data show that in March, the most recent month for which data is available, J Pad had five wells producing -- three from the Schrader Bluff oil pool and two from the Kuparuk River oil pool -- and accounted for 3.4% of Milne production. The pad, some 5 miles southwest of Milne Point, has been in production since 1991.

"This project will include installing headers and infrastructure necessary to tie-in the wells," the division said, along with cable tray installation including heat trace, power and instrumental cables. Thermosiphons will be installed where necessary.

The division said there will be no new permanent modules, as the new wells will be connected to existing infrastructure.

Work for installation of infrastructure will require an excavator, mini excavator, super sucker, zoom boom, weld truck and possibly a ground thaw unit.

In addition to the drill rig and pipe, equipment components will include boilers, mud tanks and mud pumps, rig generator, work trailers for supervisory and support staff and light plants.

Because space is limited at J Pad, some materials may be staged at I Pad, the division said, such as mud product, cementing equipment support vehicles and rig components.

Existing permitted water sources will be used.

"Exploration and production exempt waste, such as mud, cuttings, brine, and completion fluids, will be transported to an approved Grind and Inject facility in either Milne Point or Prudhoe Bay," the division said.

The work will take place from existing gravel, with the goal of increasing Milne Point production.

--KRISTEN NELSON