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MEG Energy Corp T.MEG

Alternate Symbol(s):  MEGEF

MEG Energy Corp. is a Canada-based energy company focused on in-situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. The Company is engaged in the development of enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the economic recovery of oil. It transports and sells thermal oil (AWB) to customers throughout North America and internationally. The Company owns a 100% interest in over 410 square miles of mineral leases in the southern Athabasca oil region of Alberta, Canada and is primarily engaged in sustainable in situ thermal oil production at its Christina Lake Project. Christina Lake Project is a multi-phased project, located 150 kilometers south of Fort McMurray in northeast Alberta. It comprised of approximately 200 square kilometers of leases.


TSX:MEG - Post by User

Bullboard Posts
Comment by shambano1on Mar 02, 2016 2:52pm
66 Views
Post# 24614060

RE:RE:RE:RE:shamboner, you are an idiot....LOL

RE:RE:RE:RE:shamboner, you are an idiot....LOLI would agree qith you but MEG is not in a position of strength and hence they are trying to sell access pipeline to reduce debt and strengthen balance sheet.

but selling the crown jewels that keeps your cost low is not a wise move because  the buyer wants to make a profit on operating the pipeline and so either MEG has to sell cheap enought that the buyer can afford to give them a good trasnport rate for 10-20 years or they sell for a high price and pay a higher tool rate, either way they lose.

also the BOD has to consider how how long they can run MEG in a negative CF position?

sure they ahve liquidity and they have cash, but that';s shareholder cash and I'm pretty sure they ahve also figured out that 60-70-80-90-100 oil is gone for a very long time no matter what you read.

shale is profitable at 40-50-60 depending on the play and location to infastructure and pipelines which most of it now days.

in the last 5 years while jeystone has been ongoing sage the USA has build 5 new keystone pipelines or is it 15, I forget.

and canada is still trying to get approvals for new pipelines est and west.

the board knows it will take  years to be profitable again, and it will years to pay down debt to more reasonable levels , so board has to make the responsibile decision and take a reason offer for the company before it's too late.

if they refuse a fair and reasonable offer, there will large lawsuits for sure.

now what is a fair and reasonable offer?

book means nothing in a low for longer envirnoment, CF and high debt mean everything.

either way it will be interesting but it's logical to sell the company, it's in everyone's best interest..

just as it made no sense for en independent COS, it makes no sense for an independent MEG.

let's call it a day and move on bigger and stronger CND oil sands players 

just my 2 cents 
Bullboard Posts