Hilcorp Alaska LLC: entering the Alaska oil and gas industry.

• Author: Orr, Vanessa
• Position: OIL & GAS - Geographic overview

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Ever since the discovery of oil and natural gas in Alaska, companies have come to the 49th state to try to take advantage of these natural resources. Hilcorp Alaska LLC, now based in Anchorage and with operations on the Kenai Peninsula, has recently made its first foray into the state through its acquisition of Cook Inlet oil and gas assets.

In July 2011, Hilcorp Alaska LLC and Chevron's wholly owned indirect subsidiary, Union Oil Co. of California, began the process of transferring Union's oil and gas assets located in Cook Inlet to Hilcorp, with Hilcorp assuming operation of these assets on Jan. 1. The amount of the sale was not disclosed.

Hilcorp Energy Co., which is the parent company of Hilcorp Alaska LLC, was founded in 1989 by Jeffery D. Hildebrand and a partner whom he later bought out. It is now the third largest privately held oil and gas company in the United States. Headquartered in Houston, Texas, the company has operations in Texas, Louisiana, the Gulf of Mexico, Wyoming, Colorado, Mississippi, Alabama and now Alaska. According to the company's website, its mission is "to efficiently develop energy that would otherwise be lost while providing an enjoyable and challenging work environment where long-term personal wealth can be created for all."

EXPANDING FOOTPRINT

Hilcorp continues to grow by actively acquiring and developing conventional assets while expanding its footprint into a number of new resource plays. In recent rankings of privately held US producers by IHS Herold Inc., in 2010 year-to-date production ranked by barrels of oil equivalent (BOE), Hilcorp was third with 28.8 million BOE and 1,788 wells. The company prides itself on excelling in the core competencies of engineering, geological expertise and operational excellence.

"While this is our first foray into Alaska, the purchase of the Cook Inlet assets fits our business model very well," said John A. Barnes, senior vice president of exploration and production in Alaska at Hilcorp Alaska LLC. "Our success has been built on the acquisition and development of mature legacy oil and gas fields; areas where we know that the oil is in place, and we are able to produce the remaining oil. This is our bread and butter."

ACQUIRED ASSETS

Assets in the sale include Union Oil contracts and interests in the Swanson River, Granite Point, Middle Ground Shoals, Trading Bay and MacArthur River fields; interests in 10 offshore platforms; interests in onshore...