​MEG Energy files regulatory application for new oilsands project using tech lessons from Christina Lake

Image: MEG Energy

MEG Energy’s proposed May River in situ oilsands project is a step closer to fruition with the filing of its application with the Alberta Energy Regulator.

The total capital cost over the life of the 164,000 bbl/d project, comprised of two 40,000 bbl/d phases and a third 80,000 bbl/d phase, is $10 billion, MEG's application says. This includes sustaining capital expenditures, adds MEG spokesman Davis Sheremata.

MEG says May River would use its eMSAGP technology “where applicable” to improve efficiency.

eMSAGP employs infill wells and natural gas co-injection, and MEG has used it successfully at its existing Christina Lake SAGD project to improve production rates and reduce costs.

The company says May River will include a new well pad design that is 40 percent smaller and “more technologically advanced.”

MEG says the modularized well pads will have a staggered design that will allow for future infill drilling from the opposite side of the rack as SAGD well pairs so that no new disturbance is required.

The proposed project would be located about 115 kilometres south of Fort McMurray, near Athabasca Oil Corporation’s—formerly Statoil’s—Leismer project. Construction of the first phase could start in 2019.

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