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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 BargainHunter88on Apr 30, 2016 11:14pm
117 Views
Post# 24829742

RE:good luck longs

RE:good luck longsMeg is one of the most leveraged play on oil going up. If it wasn't the large debt Meg carries, it would not be trading at 0.4 times book value. MEG has high quality SAGD operations with one of the lowest operating cost in the industry. When oil does rise above $50, Meg would be one of the companies with the most upside. If you believe oil is going to stay at around $45 for the next 4 years, get out of MEG by all means.

I for one, believe that the oil glut is highly exagerated by OPEC and media with inflated production numbers. The anticipation that US shale will production come back at $50 oil is unrealistic due to their already highly leveraged balance sheets and limited supply of premium drilling locations. I think oil will stablize around $60 by year end and MEG would probably be a $14 stock then. 

 
Bullboard Posts