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MEG Energy's Christina Lake reserves up 17%

MEG Energy, Calgary, said an independent analysis boosted its proved reserves of bitumen in the Christina Lake area of Alberta’s southern Athabasca region by 17% last year to 708 million bbl.

The analysis, by GLJ Petroleum Consultants Ltd., estimated proved plus probable reserves at 2.06 billion bbl, up 7% on the year.

MEG’s Christina Lake production, via steam-assisted gravity drainage, set a project record of 30,032 b/d in the fourth quarter of 2011. The steam-oil ratio in the fourth quarter was 2.3, beating facility design of 2.8.

MEG said its operating costs in the fourth quarter were $13.16/bbl, compared with $13.89/bbl in the fourth quarter of 2010. After power sales from cogeneration facilities, net operating costs were $8.50/bbl vs. $11.01/bbl in the corresponding quarter a year earlier.

Current development is from two phases involving six well pads with 39 horizontal well pairs. MEG drilled two infill wells in 2011.

At yearend, detailed engineering was nearly complete on the next development stage, designated 2B, which will add 35,000 b/d of design production capacity (OGJ Online, June 20, 2011).

MEG has received approval from the provincial Energy Resources Conservation Board for a multistage third development phase with design capacity of 150,000 b/d. MEG said it expects remaining approvals for that stage in the first quarter this year.


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