Energy

Hilcorp applies to drill 2 exploration wells near Ninilchik

KENAI — Hilcorp Alaska has applied to drill two additional oil and natural gas exploration wells southeast of Ninilchik in the Kenai Peninsula Borough.

The Alaska Department of Natural Resources is accepting comments on the application until Oct. 10, the Peninsula Clarion reported.

Hilcorp officials say, if approved, the company will begin clearing vegetation in late September, construct a gravel pad and begin drilling two wells to be completed by May 2016. The company presented its initial idea to the public in Ninilchik in October 2014.

"Hilcorp employees are actively engaged with regulators and stakeholders on all activities within the state," the company said in the application. "Hilcorp community outreach to date has included presentations to the Kenai Chamber of Commerce, the Alaska Support Industry Alliance, the Anchorage Chamber of Commerce, and the Cook Inlet Regional Citizens Advisory Council. Hilcorp has also participated in Ninilchik Natives Association, Inc. board meetings to present project updates."

In the permit application, the company says 88 percent of its workforce is made up of Alaska residents, but there was no indication how many jobs the exploration wells would create.

If the exploration is successful, the permit does not allow the company to set up a permanent operation. The company would have to file another application for permission to continue.

ADVERTISEMENT