Skip to main content

The Globe and Mail

MEG Energy expects to produce more oil in 2018

Meg Energy’s Christina Lake project.

The Globe and Mail

Canadian oil sands producer MEG Energy Corp said on Friday it expects higher production in 2018, compared to its 2017 forecast.

The company expects to produce 85,000 to 88,000 barrels per day (bpd) next year, compared to its 2017 forecast of 80,000 to 82,000 bpd.

MEG Energy expects capital expenses of C$510-million ($396.02-million) next year, the majority of which will be used to drill new oil wells.

Story continues below advertisement

The company said it plans to spend C$120-million next year on thermal technology at its Christina Lake oil sands project in northern Alberta, which involves adding gas to steam injected underground to liquefy and extract tarry oil sands bitumen.

"Our strong cash balance and a portion of our expected 2018 funds flow from operations will fully fund the 2018 capital program," said Chief Executive Bill McCaffrey.

Oil sands rivals Canadian Natural Resources Ltd and Suncor Energy Inc forecast lower 2018 capital spending, while significantly boosting production estimates.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨