Post by
ztransforms173 on Jul 28, 2023 10:45am
MEG Is PLAYING IT SAFE: NO BOP Expansion Until USD 600M Debt
- MEG CEO Derek Evans was CRYSTAL CLEAR in Q2/2023 CC:
* there will be NO BOP EXPANSION greater than the FACILITIES LIMIT of 110,000 bbls/d UNTIL MEG Energy has REACHED their NET DEBT MILESTONE of USD 600 million
- given current STRIP PRICING, this is EXPECTED to OOCUR in MID-2024
- once the milestone is REACHED than the PLAN calls for given market opportunity:
* BUILDING a THIRD STEAM TRAIN
* INCREASE facilities processing to 125,000 bbls/d (a 15,000 bbls/d BOP expansion)
* new well pad developments
* this expansion is FORCAST to cost between $ 250 - $ 300 MILLION and take ~ 3 YEARS time
z173