on the west side of Cook Inlet and near the small producing Nicolai Creek gas field also owned and op - erated by Hilcorp. Texaco discovered this deposit in 1966 but it has been developed and produced only in re - cent years. Hilcorp is also working to further develop another small gas field at Pretty Creek, also on the west side of Cook Inlet. Cook Inlet still produces modest amounts of crude oil from platforms still operating in the Inlet. Several platforms that operated in the flush days of the Inlet are shut down and some of the others, while still pro - ducing, are marginally economic. The state Division of Oil and Gas has developed several incentive pro - grams to stimulate bidding in lease sales including a net profits royalty in lieu of the traditional state royalty based on gross revenues. So far the incentives do not seem to be partic - ularly productive, and an explora - tion tax credit program that includ - ed cash payments to explorers was discontinued in 2017 mainly due to its costs.
Fork earlier this year from Louisi - ana-based Gardes Holdings, which was struggling to raise funds for new drilling. Hilcorp spokesman Matt Shucke - row said in a statement that the company is looking to drill new wells as soon as this winter. “Hilcorp is excited about the op - portunity to further develop the North Fork Unit — a field that is largely undeveloped but shows po - tential for new production,” Shucke - row said. North Fork is connected with a 7-mile pipeline to an Enstar Natural Gas pipeline on the Kenai Peninsula. North Fork was discovered origi - nally by Standard Oil Co. of Califor - nia in 1965 but not developed and produced until recent years. Hilcorp is also active in drilling other small gas deposits in the area such as at Whiskey Gulch, about three miles northeast of Anchor Point. Two other tracts bid on are off - shore, and just off the west shore of Cook Inlet and north of the produc - ing Ninilchik gas field, which Hil - corp owns and operates. One other tract bid on is onshore
nies already established and produc - ing in the region, so only five tracts bid on in 2025 bidding is not sur - prising. There have been state areawide sales in the Inlet that have attracted no bids. There also have been similar results with federal Outer Continen - tal Shelf leases sold in Lower Cook Inlet in previous years. The lack - luster bidding reflects the industry view that significant new discoveries are unlikely in the region, which is a mature producing area where ex - ploration began in the late 1950s and production began in the 1960s and 1970s. The modest bidding is a concern for state leaders and local communi - ties because Cook Inlet gas supplies are being depleted and regional util - ities are planning to import liquefied natural gas to augment supply for power generation and space heating. For the 2025 sale, two onshore leases bid on are northeast of An - chor Point on the lower Kenai Pen - insula south of Anchorage near the small North Fork gas field. Hilcorp is now exploring for additional gas in the area. Hilcorp acquired North
— Tim Bradner
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