Robert Trice, the CEO of North Sea oil producer Hurricane Energy, resigned, the group said on June 8 after it had to give up its ambition to sustainably produce around 20,000 barrels per day (bbl/d) and shut one of its pilot wells.
Trice was a proponent of the so-called fractured basement method, which involves recovering oil from fractures in hard and brittle rock, which some see as a risky way to obtain crude.
Trice will be replaced by Beverley Smith, a former BG Group employee and non-executive director at Hurricane since late last year.
“In evaluating options for the forward work program against an uncertain macroeconomic backdrop, we will priorities early low-cost production with the capital discipline needed to achieve financial resilience,” Chairman Steven McTiernan said.
In a coup for Hurricane in 2018, Spirit Energy, backed by Centrica, invested almost $400 million in a Hurricane field.
Hurricane is currently producing around 10,300 bbl/d.
“The operations update is... concerning with production still running below the level we believe is required to repay the bonds and acknowledgment of the possibility a shallower oil-water contact, which could have significant implications for reserves/resources,” said BMO analyst David Round.
Recommended Reading
US Shale Gas Producer Ascent Resources Prepares for IPO: Sources
2022-03-31 - The two private equity firms that own Ascent Resources—the Energy & Minerals Group and First Reserve Corp.— are working with Citigroup Inc. and Barclays Plc to prepare for an IPO of Ascent, the sources said.
Aker Solutions Appoints Trine Svalestad as SVP Sustainability
2022-03-22 - Aker Solutions forecasts a significant increase in its activities as a key supplier of new energy facilities.
Legal Side of ESG: Top Three Issues to Watch in 2022
2022-03-23 - The SEC’s proposed rules and ESG-related litigation risk are among the key ESG themes impacting the regulatory and legal space of the energy sector this year.
TotalEnergies to Stop Buying Oil, Fuel Products from Russia
2022-03-22 - French oil major TotalEnergies came under strong criticism after it condemned what it called Moscow’s military aggression in Ukraine, but stopped short of joining rivals Shell and BP in planning to exit positions in resource-rich Russia.
Walkout at Chevron Oil Refinery Will Not Further Raise Fuel Prices: Analyst
2022-03-21 - The walkout by more than 500 United Steelworkers members at the 245,000 bbl/d Richmond, California, plant, the second-largest in state and a major supplier of gasoline, jet fuel and diesel fuel.