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Vol. 29, No.24 Week of June 23, 2024
Providing coverage of Alaska and northern Canada's oil and gas industry

State OKs Kenai stratigraphic program

Hilcorp Alaska plans 20 stratigraphic test wells; AOGCC drilling permits already issued for 18; continues program begun in 2017

Kristen Nelson

The Alaska Department of Natural Resources' Division of Oil and Gas has approved Hilcorp Alaska's proposal to drill eight stratigraphic test wells on state oil and gas leases on the Kenai Peninsula near the Ninilchik and Anchor Point areas. In its June 18 approval the division noted that the company's stratigraphic testing program will include 20 stratigraphic test wells.

As of its online listing on June 19, the Alaska Oil and Gas Conservation Commission from early May through May 14 issued Hilcorp Alaska 18 drilling permits for stratigraphic test wells including: Happy Creek 6, 7, 11, 12 and 28; Starlight 2, 3, 4, 5 and 7; and Whiskey Gulch 19-26.

Hilcorp began drilling stratigraphic test wells on the Kenai in 2017, and previous wells included 10 Cottonfield wells, two Deep Creek wells, six Happy Valley wells, five Pearl wells and 12 Whiskey Gulch wells.

Eight wells on state leases

The eight wells on state subsurface land include four on private surface land; one on Kenai Peninsula Borough surface land; and three on state surface land.

The division said mobilization for the project was proposed to begin June 15, with drilling of test wells June 20 through Aug. 20 followed by project demobilization.

Because of formation instability casing will be required in the top 100 to 200 feet and will be drilled into place. Samples will be acquired every 30 feet of the wellbore.

The division said the wells will be drilled with a truck-mounted water well rig at "locations accessible from established roads."

Cook Inlet Areawide Mitigation Measures were incorporated into Hilcorp's plan. "Hilcorp addressed these mitigation measures in the application process and no exceptions were requested," the division said.

Relevant state and federal agencies were notified of the application and it was public noticed; no comments were received from either agencies or the public.

Access issues

In its application Hilcorp said permission for activities on private property would be obtained from landowners. For sites within Alaska Department of Transportation and Public Facilities right of way, Hilcorp said the following conditions may apply:

*Test wells to be outside Sterling Highway clear zone, 30 feet minimum, 50 feet desirable;

*A traffic control plan required for distances less than 30 feet;

*Equipment may have flashing lights;

*No material or equipment staging or parking in clear zone;

*For casings above ground before being cut off below the surface, type II barricades will be used; and

*Where necessary to minimize damage, matting material may be used.



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