High-Return, Short-Cycle Growth

The Impact of Technology on MEG’s Business Model

MEG Energy has transformed the way business can be done by utilizing our proven, proprietary eMSAGP technology to increase production while decreasing our costs and steam-oil ratio. Through the application of eMSAGP on our Phase 2B assets, we have realized production growth while continuing to drive our steam oil ratio down and reduce our non-energy operating costs per barrel.

Operational guidance for 2019 is 90,000 to 92,000 bbls/d and assumes the Alberta Government mandated production curtailment remains in place for 2019 while easing over the course of the year. If curtailments were not in place, MEG would have the ability to average 100,000 bbls/d in 2019.

 

eMVAPEX

MEG’s proprietary eMVAPEX process is a continuation of eMSAGP that involves the injection of a condensable gas to maintain reservoir pressure, which reduces steam injection to near-zero. In 2018, the company plans to convert up to seven additional well pairs and associated infills to eMVAPEX and construct a solvent recycling facility to test the commerciality and scalability of the technology.

eMVAPEX has the potential to dramatically decrease MEG's steam-oil ratio, reduce future capital costs by lessening the requirement for steam and water handling capacity at the central plant facility, and further decrease operating costs and greenhouse gas emission intensities. Initial test results for the technology have been very encouraging and MEG hopes to update markets on our plans for eMVAPEX by early 2019.