MEG Energy is a pure play oil sands company with a large, wholly-controlled resource base concentrated in the southern Athabasca region of Alberta. MEG owns more than 2,300 square kilometres of oil sands leases in three key asset areas:
MEG plans to grow its production using steam-assisted gravity drainage (SAGD) technology with thermal-electric cogeneration providing a portion of the required steam. MEG is also deploying eMSAGP technology as part of the RISER initiative to maximize production out of existing assets.
These proven technologies have demonstrated economic and environmental advantages. While the benefits of using proven technology are the foundation of our approach, we also actively investigate technologies that can provide further improvements to resource recovery while reducing our costs and environmental footprint.
In addition to our large resource base and producing assets, MEG also holds a number of midstream assets that help provide a reliable and cost-effective connection to markets. MEG's 50%-ownership of Access Pipeline and Sturgeon Terminal allows us to effectively move our product, Access Western Blend (AWB), to Edmonton where we can access a number of key markets.
The Sturgeon Terminal provides storage facilities for our product and condensate supplies necessary to move our blended bitumen through pipelines. MEG also wholly owns the Stonefell Terminal located in Alberta's Industrial Heartland. This facility provides storage capacity for our bitumen blend as well as diluent supplies. Stonefell Terminal is connected to a third-party rail-loading facility by a proprietary pipeline lateral, effectively establishing Canada's first well-head to unit train rail-loading connection.
MEG is also investing in a field demonstration pilot project located in Alberta's Industrial Heartland to continue to develop a proprietary technology called HI-Q®. This technology aims to produce high-quality heavy oil that can be transported through pipelines without diluents. MEG has also announced plans to construct a Diluent Removal Facility to be located near Stonefell Terminal. This facility will allow us to transport bitumen by rail with minimal or no diluent.
Together these assets provide MEG with unique cost and revenue advantages, forming the basis of our Hub and Spoke marketing strategy.
* See Oil and Gas Information section of our Legal Notice