MEG Energy Corp., Calgary, is reducing its 2015 capital spending plans to $305 million (Can.) from the original budget of $1.2 billion.
“The revision of our 2015 capital investment plan is in response to the continuing deterioration of global crude oil markets,” said Bill McCaffrey, president and chief executive officer.
“While our projects remain economic at current strip pricing, we believe it is prudent to reduce capital spending until we see a sustained improvement in commodity prices," he explained. "Our brownfield opportunities also provide us with the flexibility to increase spending at a measured pace under the right market conditions.”
MEG’s previously released 2015 production guidance remains unchanged, targeting a production increase of about 19% to as much as 82,000 b/d. The company expects staff levels to remain “consistent with current levels” to maintain operations and to execute future growth (OGJ Online, Nov. 4, 2014).