Hilcorp green lighted for North Cook Inlet gas development plan, targeting new wells to sustain Southcentral supply

By SUZANNE DOWNING

June 6, 2026 – The Alaska Division of Oil and Gas has approved Hilcorp Alaska’s 2026 Plan of Development for the North Cook Inlet Unit, one of the largest natural gas-producing fields in Southcentral Alaska and a critical supplier for the region’s homes, businesses, and electric utilities.

The approval covers the period from July 1, 2026, through June 30, 2027, and allows Hilcorp to continue development activities from its Tyonek Platform in northern Cook Inlet.

Under the approved plan, Hilcorp will drill two new grassroots wells targeting the Beluga gas sands and one sidetrack well. The company also plans to evaluate additional sidetrack opportunities, conduct well maintenance projects, perform coil cleanouts, add perforations to existing wells, and complete annual facility inspections and upgrades.

In a May 20 decision letter approving the plan, Division Director Haley Paine wrote that the development program serves the public interest by maintaining and enhancing production from a field that has been supplying Alaska consumers for decades.

“The public has an interest in diligent development of the State’s resources,” Paine wrote. “The plans set forth in the 2026 POD protect this public interest by maintaining and enhancing production, drilling two grassroots wells, one sidetrack well, and conducting facility upgrades.”

The North Cook Inlet Unit has been producing natural gas since 1969 and has yielded nearly 2 trillion cubic feet of gas over its lifetime. Through March 2026, cumulative production reached approximately 1.993 trillion cubic feet, according to the Division of Oil and Gas.

Hilcorp acquired the field from ConocoPhillips in 2016 and holds a 100% working interest in all producing intervals within the unit.

The field remains a major contributor to Cook Inlet gas supplies. According to Alaska Oil and Gas Conservation Commission production data, North Cook Inlet averaged more than 40 million cubic feet of gas per day in April 2026, accounting for roughly 19% of all Cook Inlet gas production.

Only the Beluga River field produced more gas during the month, averaging more than 53 million cubic feet per day, or about 25% of total inlet production. Together, the two fields accounted for approximately 44% of Cook Inlet’s average daily production of more than 210 million cubic feet in April.

The approval comes as utilities and policymakers continue to focus on maintaining reliable gas supplies for Southcentral Alaska. Cook Inlet production has declined over the years from its historic peaks, increasing the importance of ongoing development drilling and field maintenance to offset natural declines in mature reservoirs.

The North Cook Inlet Unit is a prime example of that effort. Rather than opening a new field, Hilcorp’s 2026 program focuses on extending the productive life of an established asset through additional drilling and well work.

The company’s previous development plan called for three sidetrack wells, facility maintenance, and a platform slot expansion designed to accommodate future drilling. During the past year, Hilcorp exceeded its sidetrack commitment, completing four sidetrack wells targeting the Upper and Lower Beluga sands, while also finishing the Leg 2 slot expansion project and conducting various well maintenance operations.

State regulators concluded that the new development plan promotes conservation of resources, prevents waste, and protects the interests of both the state and the company.

Specific drilling operations and field activities will still require separate approvals through the state’s Unit Plan of Operations process. Hilcorp’s next annual plan of development for the field is due April 1, 2027.