Hillcorp: investment, rigs and storage changes aim to sustain Cook Inlet supply; company bought jackup rig to keep capacity in Alaska

Hillcorp senior vice president for Alaska Luke Sorge told the Alaska Senate Resources Committee on Jan. 22 that the company is investing heavily in Cook Inlet development, has purchased and kept a jackup drilling rig in Alaska to preserve seasonal drilling capacity, and is moving to make a large depleted reservoir available for regulated third‑party storage.

Sorge said Hillcorp arrived in Alaska in 2012 and has since drilled 174 wells, spent over $1 billion in the state and produced roughly 750 BCF for local markets. He told the committee Hillcorp budgeted and drilled 21 wells in 2024, of which “a little over half” — roughly 13 — were brought into production; the company plans another aggressive program in 2025 (about 15–20 wells).

Sorge explained that Cook Inlet production declines quickly (Hillcorp estimates about a 30 percent annual decline on its late‑life assets), so maintaining supply requires sustained drilling. He said Hillcorp’s leases cannot, by themselves, meet 100 percent of South Central Alaska demand and that production from other operators has declined in recent years. Sorge said Hillcorp’s contracted sales volume is about 323 BCF (out to…