Highly-Economic Growth Projects

Pure play

MEG Energy is a "pure play" oil sands company with:

MEGs oil sands projects use steam-assisted-gravity-drainage - or SAGD - technology. Taking a staged approach to growth with SAGD helps manage capital and operating costs, while reducing the environmental impact of development on land and water compared to traditional mining methods.

The Journey to 210,000 Barrels Per Day

Our vision for the future entails the implementation of a series of highly economic expansions at our Christina Lake leases. Our goal is to take our production to the regulatory approved limit of 210,000 barrels per day, while driving down our per barrel cash costs with each incremental expansion. Following that, we plan to develop our projects at Surmont, which has a total design capacity of approximately 120,000 barrels per day, and May River, which is designed to produce approximately 160,000 barrels per day.

  • 2017: Expand eMSAGP to Phase 2B wells, which represent 75% of MEG production. Production increases begin from eMSAGP, enabling MEG to exit 2017 at 86,000 to 89,000 barrels per day while the steam-oil ratio (SOR) is reduced.
  • 2018: Subject to market conditions, Phase 2B Brownfield expansion commences in mid to late year. Capital expenditures for eMSAGP expansion completed. Production ramp-up continues.
  • 2019: Phase 2B eMSAGP expansion fully ramped up, taking production to approximately 100,000 barrels per day and further reducing the company’s SOR. Phase 2B Brownfield expansion begins to ramp up toward year end.
  • 2020: Phase 2B Brownfield expansion complete, bringing total MEG production to approximately 113,000 barrels per day, further reducing the company’s SOR, and reducing cash costs by $6 to $7 per barrel.

Following completion of these two projects, MEG’s goal is to incrementally grow production to 210,000 barrels per day at Christina Lake by advancing a series of high-return, short-cycle 10,000 to 20,000 barrels per day projects. These projects will have capital cash intensities in the range of $20,000 to $30,000 per flowing barrel and are each expected to take 12 to 18 months to implement.*

growth* Growth from 80,000 to 100,000 barrels per day is fully funded with cash on hand.
   Brownfield expansion to be funded through internal sources as available.
   Growth beyond to 210,000 barrels per day can be internally funded at approximately US$50 WTI.

** Compound annual growth rate.