MEG Energy Stock

MEG Energy Corp. operates as an energy company.

The company focuses on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. The company is actively developing innovative enhanced oil recovery projects that utilize steam assisted gravity drainage (SAGD) extraction methods to improve the responsible economic recovery of oil, as well as lower carbon emissions.

The company transports and sells thermal oil (known as Access Western Blend or ‘AWB’) to customers throughout North America and internationally. The company owns a 100% interest in over 450 square miles of mineral leases in the southern Athabasca oil region of Alberta, Canada. The company primarily engages in sustainable in situ thermal oil production at its Christina Lake Project.

The Christina Lake Project, which contains all of the company’s 2P reserves has regulatory approval in place for 210,000 bbls/d (barrels per day) of production. At a design steam oil ratio of 2.4, the company has developed oil processing capacity of approximately 100,000 bbls/d at its Christina Lake central plant facility, prior to any impact from scheduled maintenance activity or outages, through the phased construction of the Christina Lake Project, as well as several debottlenecking and expansion projects and the application of its proprietary reservoir technologies.

The company owns, leases and contracts for services on multiple facilities to transport, store and deliver AWB to customers.

In 2020, the company’s contracted AWB transportation capacity increased to 100,000 bbls/d on FSP (Flanagan South and Seaway pipeline systems). The company is also a shipper on the Trans Mountain Expansion Project which, when in service, will provide the company with 20,000 bbls/d of contracted AWB transportation capacity to Canada’s west coast. The company has also contracted oil storage capacity of 2.8 million barrels in Alberta and strategic locations in the U.S., with marine export capacity at select USGC (the U.S. Gulf Coast) terminals.

The company has a long-term commitment to deliver AWB on the Access Pipeline from its Christina Lake Project to the Edmonton market connecting to local refineries and export pipelines. The Access Pipeline is consisted of an AWB blend pipeline system and diluent pipeline system. The AWB blend pipeline system runs from the Christina Lake Project to Edmonton. The diluent pipeline system runs from the Edmonton area to the company’s Christina Lake Project and allows the company to manage its local and import sourced diluent supply for the purposes of blending with its Christina Lake production.

In the Edmonton area, the company has contracted approximately 1.4 million barrels of storage and terminalling capacity, including approximately 900,000 barrels of capacity at the Stonefell Terminal. The Stonefell Terminal is connected to the Access Pipeline System and provides the company with the ability to sell and deliver AWB to a variety of markets; access multiple sources of diluent; and store both bitumen blend and diluent in periods of market and transportation disruptions or constraints. Stonefell Terminal is directly connected by pipeline to the Bruderheim Terminal, where the company has loading capacity for AWB transport by rail.

The company has contracted for pipeline capacity, storage capacity and marine export capacity in the USGC area. Specifically, the company has contracted for approximately 1 million barrels of storage capacity, along with marine export capacity, at Beaumont, Texas. The company has also contracted for capacity on the Bayou Bridge pipeline and 350,000 barrels of storage capacity at St. James, Louisiana.

Christina Lake Project

The Christina Lake Project is situated on 80 square miles of mineral leases in the southern Athabasca region of Alberta. Phase 1, Phase 2 and Phase 2B are all approximately six miles northeast of Cenovus Energy Inc.'s Christina Lake SAGD project and 11 miles northeast of Canadian Natural Resources Limited's Jackfish SAGD project. The company owns a 100% working interest in the mineral leases associated with its Christina Lake Project. The company has regulatory approvals in place to support up to 210,000 bbls/d at the Christina Lake Project.

Surmont Project

The Surmont Project comprises 32 square miles of lands in the southern Athabasca region of Alberta. The Surmont Project is located approximately 50 miles south of Fort McMurray and is approximately 30 miles north of the Christina Lake Project. The company’s Surmont Project is situated along the same geological trend as the Christina Lake Project. The Surmont Project is adjacent to an in situ thermal project operated by ConocoPhillips Canada. The company owns a 100% working interest in its mineral leases associated with the Surmont Project. The company has conducted extensive seismic programs and delineation drilling programs in the Surmont Project area.

May River Regional Project

The May River Regional Project properties are situated on 181 square miles of lands in the southern Athabasca region of Alberta. The company owns a 100% working interest in the mineral leases of its May River Regional Project.

As of December 31, 2020, the company had drilled and cored 118 stratigraphic test wells (core holes) and recorded 77 square miles of 3D seismic data over the company’s leases in the May River Regional Project area.

Growth Properties

The Growth Properties (the thermal oil production leases held by the company in the West Kirby, East Kirby and Portage areas of Alberta) are situated on approximately 196 square miles of lands in the southern Athabasca region of Alberta; and includes the Duncan, East Kirby and West Kirby mineral leases. The company owns a 100% working interest in the mineral leases of the Growth Properties. As of December 31, 2020, the company drilled 18 and cored 15 stratigraphic test wells over the company’s leases in the Growth Properties.

History

MEG Energy Corp. was incorporated in 1999 under the Business Corporations Act (Alberta), as amended.