MEG Energy starts Surmont consultation

By OGJ editors

MEG Energy Corp. will begin formal stakeholder consultation leading to regulatory applications to develop oil sands leases in the Surmont area of Alberta.

The company plans to produce 120,000 b/d of bitumen with steam-assisted gravity drainage.

Its leasehold covers 80 sq km about 60 km south of Fort McMurray and north of the Christina Lake area, where it is expanding SAGD production to 60,000 b/d from 25,000 b/d and has regulatory approval to boost production by 150,000 b/d (OGJ Online, Feb. 13, 2012).

MEG Energy has begun environmental and engineering studies for the Surmont project. It expects to submit a regulatory application at midyear.

The project will include multiwell production pads, electricity and steam cogeneration, water and bitumen treatment, and worker accommodations.

The company estimates best-guess contingent resources at 837 million bbl in the Cretaceous McMurray formation productive in the Athabasca oil sands region.

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