MEG Energy Corp. has announced its 2018 capital investment plan and operational guidance. Highlights include:
- A 2018 capital budget of $510 million, 24% of which is directed towards the completion of the Phase 2B eMSAGP growth project, 20% towards an expansion of the pilot program involving the company's proprietary eMVAPEX technology and positioning the company to grow beyond 100,000 barrels per day (bpd), 43% towards sustaining and turnaround costs, and the remainder towards field infrastructure, corporate and other initiatives;
- Financial resources available to the company to fund its 2018 capital program include expected internally generated cash flow and cash on hand;
- Targeted 2018 average production in the range of 85,000 to 88,000 bpd, 2018 exit production in the range of 95,000 to 100,000 bpd, and non-energy operating costs of $4.75 to $5.25 per barrel. The operational guidance takes into account a major turnaround at the company's Christina Lake Phase 2B processing facilities planned for 2018, with an anticipated 5,000 to 6,000 bpd impact on production for the year.