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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
Post by shambano1on May 26, 2016 4:21pm
106 Views
Post# 24908008

I know IMO is kicking some tires looking for a barnyard find

I know IMO is kicking some tires looking for a barnyard findbut are they kicking MEG's tires?

I think for the right price IMO would be interested in MEG's low cost and long life oil sands operations and future growth properties as well and even with the current debt.

the access pipeline is a great asset that compliments Christina lake and surmont properties, so IMO would want the whole pie, not just the oil producing assets.

The more and more you read about future oil prices the more and more it makes sense to buy high quality low cost sagd operations like Christina lake and wait for better days.

there has been such a large capital cut backs in 2016 and 2017 that even if companies wanted to increase produciton next year it's not going to be easy.

Suncor is well positioned to take advantage of rising oil produciton as commodity prices start to recover back to more sustainable levels, which are 65-75 range.

MEG will be able to also increase produciton  in smaller lots of 1000-3000 with smaller capex investments but still slowly grow  produciton as price start to recover.

the only question I'm asking right now before I buy MEG?

what will cause the SP to go down and how likley is that?

GLTA

p.s. I did add to my long position today


Bullboard Posts