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.
Wood Mackenzie research indicates Permian wells see better production from upspacing.
No decision had been taken yet on the exact volume to bring back to the market, two OPEC+ sources said June 22.
A case study in the Delaware Basin shows how a machine learning process translated prestack seismic inversion attributes to meaningful rock properties in the Wolfcamp interval.