MEG's plan to boost production and lower emissions at Christina Lake
MEG Energy says it plans to produce more oil next year, about 6% more to be exact. The company expects its bitumen production to average about 81,000 bbl/day this year, rising to an average of 85,000 to 88,000 bbl/day next year.
MEG has set a 2018 capital budget of $510 million, about one-quarter dedicated to the completion of its Phase 2B eMSAGP growth project. Another $100 million is dedicated to developing the company's proprietary eMVAPEX technology, which includes injection of a light hydrocarbon to reduce steam loads.
Operating costs at its Christina Lake operations are expected to average about $5/bbl in 2018, ex-energy. A major turnaround is planned for the SAGD facility sometime next year.
MEG says it hopes to exit 2018 close to the 100,000 bbl/day mark and potentially expand production by another 10% in 2019. Christina Lake has regulatory approvals in place for 210,000 bbl/day.