A method for recovering hydrocarbons (e.g. oil) from a low permeability subterranean reservoir of the type comprised primarily of diatomite. A first slug or volume of a heated fluid (e.g. 60% quality steam) is injected into the reservoir at a pressure greater than the fracturing pressure of the reservoir. The well is then shut in and the reservoir is allowed to soak for a prescribed period (e.g. 10 days or more) to allow the oil to displaced by the steam into the fractures by imbibition. The well is then produced until the production rate drops below an economical level. A second slug of steam is then injected and the cycles are repeated with the volume of each subsequent slug of steam being progressively smaller that the one before it (i.e. about 80%) and the respective soak period being increased by about 20% over that of the previous cycle.