MEG moves ahead with Christina Lake Phase 2B SAGD

By OGJ editors
HOUSTON, June 20
-- MEG Energy Corp. signed a letter of intent with Flint Energy Services Ltd. for construction of Christina Lake Phase 2B steam-assisted gravity drainage (SAGD) oil sands project near Conklin, Alta.

The agreement includes both field construction and pipe fabrication, the latter of which will be manufactured at Flint's fabrication facilities in Sherwood Park, Alta.

Flint expects construction to begin in the third quarter with completion of the project in first-quarter 2013.

MEG Energy is developing Christina Lake in three phases. Phases 1 and 2 began production in 2008 and 2009 and have a combined design bitumen production capacity of 25,000 b/d. Even though Phase 2 came on stream late in 2009, by June of 2010 the combined average production from these two phases had already exceeded 26,000 b/d, according to MEG.

The company said Phase 2B will add 35,000 b/d of production capacity, which would bring MEG's combined production capacity at the Christina Lake project to 60,000 b/d.

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