Alaska Approved Expansion at Paxton Pad Site
Hilcorp Alaska plans to add two wells to its Ninilchik unit footprint to bolster regional natural gas output.
Updated on Sept. 24, 2026 in Oil and Gas
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The Alaska Department of Natural Resources authorized a plan of operations amendment for the Paxton Pad on September 21, 2026. Operator Hilcorp Alaska plans to drill two new wells at the site, which sits 4 miles northeast of Ninilchik.
Why it matters
The expansion at the Paxton Pad aims to maintain productivity at a site currently responsible for a significant portion of Ninilchik unit gas output. Operators in the region are closely monitoring these efforts as they impact broader supply levels across the Cook Inlet area.
The Paxton Pad produced 37% of the Ninilchik unit's total gas output in July 2026, a unit that provided 15.4% of the gas produced across the Cook Inlet. Hilcorp Alaska has secured approval to add two new wells along with associated infrastructure at the existing site.
The players
Alaska Department of Natural Resources
The state agency responsible for overseeing land and resource management, including the regulatory approval of oil and gas operations.
Hilcorp Alaska
A major independent energy exploration and production company serving as the operator for the Ninilchik unit.
The details
The approved plan allows for the installation of additional flowlines, heaters, and compressors required to support the new Paxton 16 and 17 wells. All infrastructure improvements must be contained within the existing footprint of the Paxton Pad. This approach leverages the established operations at the site, where Hilcorp recently completed the Paxton 15 well on June 15, 2026.
Timeline
June 15, 2026: Hilcorp completed the Paxton 15 well.
July 2026: Ninilchik unit provided 15.4% of Cook Inlet production.
September 2026: Hilcorp applied for the plan amendment.
September 21, 2026: The Alaska Department of Natural Resources issued the decision.
Market Landscape
The project follows a pattern set by the ongoing Cook Inlet natural gas production decline, as operators attempt to stabilize output levels. This expansion represents a localized effort to sustain the unit's contribution to the regional energy supply.
Operators in the Kenai Peninsula should track the operational capacity of these new wells as they come online to gauge regional supply trends. Companies relying on local gas availability should adjust procurement strategies to account for the potential shift in Ninilchik production volumes.
The takeaway
Maintaining production at existing pads like Paxton is a primary strategy for operators in the Cook Inlet region. Businesses should monitor future production reports from the Alaska Department of Natural Resources to determine how well these new wells offset existing output trends.
Further reading
For more on the regional energy landscape, see Oil and Gas.
Source note: This article includes information reported by Petroleum News.
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