The entrepreneurial spirit rings strong and true at MEG Energy and it has since the very beginning. Learn how MEG has become the vibrant company that we are today by taking a look at where things began in 1999.
Bill McCaffrey, Steve Turner and Dave Wizinsky formally establish the McCaffrey Energy Group Inc., now known as MEG Energy. Using personal savings, the group purchases MEG’s first land package totalling nine sections in the relatively unknown Christina Lake region.
Bill recruits the initial technical team of Jim Kearns, Al Siemens, Ken Marsh, Andrew Bonvicini and Brian Rottenfusser. Through effective cost-management and a well-defined strategic plan, the group continues to secure assets in the Christina Lake region during an economic downturn.
2000 – 2002
“Sweat-equity” and high net worth private equity investors finance the initial capital investment required. An additional nine sections of oil sands leases at Christina Lake are acquired.
MEG secures its first substantial institutional investor and uses proceeds to acquire an additional 34 sections of oil sands leases at Christina Lake. MEG’s ability to raise private equity would later be described as one of the most successful in North America. MEG initiates its first significant resource characterization work at Christina Lake, with core hole drilling and seismic data.
Regulatory approval for Phase 1 is received and construction gets underway at Christina Lake.
MEG enters into a joint venture to construct and operate the Access Pipeline. Regulatory approvals are secured by the end of the year.
MEG identifies an innovative way to finance the construction of the Access Pipeline and further development at the Christina Lake Project. Rather than going public, the company remains private and secures the first institutional term loan for an oil sands project through U.S. debt capital markets. The deal closed in March 2006 and would later earn MEG the honour of the “2006 Americas Oil and Gas Deal of the Year” (Project Finance International).
2005 – 2009
MEG acquires large lease positions at Surmont and its Growth Properties in the Southern Athabasca region of Alberta.
In March, Access Pipeline begins operating.
After receiving regulatory approvals, MEG commences construction of Phase 2 of the Christina Lake Project.
In July, an application to increase production at Christina Lake by 35,000 bpd (Phase 2B) is filed with regulatory authorities.
Phase 1 reaches design capacity of 3,000 barrels per day.
MEG receives regulatory approvals for Phase 2B of the Christina Lake Project.
Steaming of the initial well pairs commences at Phase 2. Combined total design capacity of 25,000 bpd for Phase 1 and 2 was reached within just 10 months, a record-setting pace for industry.
MEG starts its cogeneration facility and by the end of the year is operating near capacity.
MEG completes its initial public offering (IPO).
MEG is awarded the 2010 Producer of the Year Award by Oilsands Review magazine.
MEG wins the Canadian Dealmakers “2010 IPO of the Year Award”.
MEG rings the bell at the Toronto Stock Exchange.
MEG announced plans to expand the capacity of the Access Pipeline to accommodate planned production growth.
MEG launches RISER, an initiative aimed at driving additional low-capital and operating cost production from existing assets through proprietary reservoir technology and plant modifications.
MEG receives regulatory approval for a total of up to 210,000 bpd at Christina Lake.
MEG files a regulatory application for its Surmont properties, a proposed 120,000 bpd multi-phase project north of the company's Christina Lake operations.
A combined $800 million public and private placement equity offering is successfully completed, supporting MEG's ongoing growth plans. With the benefits of the RISER initiative, fourth quarter production reaches 32,292 bpd, 30 per cent above the Christina Lake Phase 1 and 2 original design capacity.
Third Quarter 2013
First steam and the start of commissioning of the central processing facilities for Christina Lake Phase 2B are announced.
Fourth Quarter 2013
Stonefell Terminal is successfully commissioned. A proprietary pipeline connecting Stonefell Terminal to the Canexus rail-loading facility near Bruderheim, Alberta, is completed effectively establishing Canada's first well-head to rail pipeline connection.
Christina Lake Phase 2B is successfully completed and ramp-up begins.
Fourth quarter production levels reach record highs of 42,251 bpd, driven by the strong start-up of Phase 2B and the success of MEG's RISER initiative. Annual production for 2013 averaged 35,317 bpd, an increase of 23% over 2012 volumes.
The first MEG patent is awarded to the HI-Q® process.
MEG's first unit-train shipment made.
MEG announces plans to construct a diluent removal facility.
MEG Energy President and CEO Bill McCaffrey named C-Suite Energy Executive Awards CEO of the Year.
MEG is named as one of Alberta's Top 65 Employers.
Second Quarter 2014
Christina Lake Phase 2B commenced production in the fourth quarter of 2013 and attained its full design capacity in the second quarter of 2014.
Bill McCaffrey of MEG Energy named EY Entrepreneur of the Year™ Prairies 2014
Third Quarter 2014
Expansion of MEG’s jointly owned Access Pipeline from our Christina Lake site to the Edmonton marketing hub was successfully completed.
MEG is named Oilsands Review's 2014 Producer of the Year.
Fourth Quarter 2014
With the start-up of the Flanagan-Seaway system in late 2014, MEG has a direct pipeline conduit to the US Gulf Coast market.
Fourth Quarter 2014
Annual Production for 2014 averaged 71,186 bpd, an increase of 102% over 2013 volumes.
MEG is named one of Alberta’s Top 70 Employers for 2015.