By OGJ editors
HOUSTON, Jan. 9 -- MegaWest Energy Corp., Calgary, suspended steam injection at its heavy oil projects in Vernon County, Mo., pending a recovery in oil prices.
The company also suspended all capital projects and put a hold on all discretionary spending, MegaWest said Dec. 31.
Oil sales started in August 2008 from the Marmaton River Project Phase 1, which had begun to respond to steam injection. Initial indications of reservoir performance at the Grassy Creek project were better than those achieved at Marmaton, consistent with the better reservoir quality and thicker oil pay zone, the company said.
MegaWest, which holds more than 110,000 net acres in Missouri, Kansas, Kentucky, and Montana, has technical teams evaluating asset sales, farmouts, joint ventures, restart options, funding alternatives, and overhead cost reductions.