Breitburn In Trouble, page-7

Or he could have done a straightforward oil hedge. There would still be basis risk, however the hedge would still be more effective than nothing.
Just one of many examples of a case study in poor management.
To see a nice retrospective summary view of suitable cynicism, which is somewhat alarming to see pattern played out see the questioner here: https://www.intelligentinvestor.com.au/azz-notes-1747996
All shareholders (myself included) should share the blame for not acting on these alert signs before.