MEG Energy Corp T.MEG

Alternate Symbol(s): MEGEF

Energy Oil & Gas Refining & Marketing

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

MEG Energy Corp

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Post by Duxingon Oct 29, 2017 12:27am

152 Views

Post# 26872863

A easy way for MEG break even WTI price

Q2 WTI averaged near 49.
MEG Energy 2017 operation loss:
9 month: 158m for 21.18m barrels: $7.46/barrel or 5.67 USD/barrel
9 month WTI averaged about 50. This tells MEG needs minimum 55 WTI to breakeven;
Q3: 43m for 7.64m barrels: $5.63/barrel or 4.5USD/barrel
Q3 WTI averaged near 49. This tells MEG needs minimum 53 WTI to breakeven.

conclusion: 44 to 46 breakeven is day dream!
the major problem for MEG is huge debt and interest cost which is about $15/barrel.

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