Hunting PLC (LSE:HTG) said a pilot of its Organic Oil Recovery (OOR) enhanced oil recovery technology at Buccaneer Energy Plc’s Pine Mills field in East Texas resulted in a doubling of oil output from the test wells, with one well’s water cut falling to zero.
The trial demonstrated a 100% increase in production across the pilot wells, highlighting the ability of OOR to improve residual oil recovery in mature fields. Buccaneer has indicated plans to expand deployment of the technology across additional wells in its portfolio, signalling growing commercial traction for Hunting’s solution.
Management said the results strengthen confidence in OOR as a cost-effective enhanced recovery technique that can be applied to a broad base of existing wells worldwide. By improving production efficiency and extending asset life, the technology could widen Hunting’s addressable market within oilfield services while reinforcing its competitive position in lower-cost recovery solutions.
From an investment perspective, the company’s outlook is supported by strong cash flow generation in 2024, a low-leverage balance sheet and shareholder-focused initiatives, including an expanded share buyback programme. However, profitability has been volatile, with a loss reported in 2024 following a profit in 2023. Technical indicators also point to softer near-term momentum, with a negative MACD reading and RSI below 50 tempering the otherwise solid financial footing.
More about Hunting
Hunting PLC is a London-listed global precision engineering group supplying equipment and premium services primarily to energy and industrial markets. Established in 1874 and headquartered in London, with a major corporate office in Houston, the company operates across the UK, US, China, India, Indonesia, Mexico, Saudi Arabia, Singapore and the UAE. It reports through five operating segments and focuses on product lines including OCTG, perforating systems, subsea technologies and advanced manufacturing solutions.
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