MEG Energy Surmont development plan approved

The Surmont oil sands project will extract bitumen from the McMurray Formation, a reservoir that holds very similar properties to those at Christina Lake (shown). MEG Energy photo.

Last week, the Alberta government announced it has approved MEG Energy’s Surmont development plan.

The proposed Alberta oil sands project is located about 80 kilometres south of Fort McMurray and is forecast to produce about 120,000 barrels of bitumen per day from the McMurray Formation.

According to the company, the project will use steam-assisted gravity drainage, or SAG-D, technology to extract the bitumen.  MEG says proved plus probable reserves for Surmont are estimated to be 709 million barrels.

Alberta’s Minister of Energy, Sonya Savage, said “Through this approval, we are showing our support for industry-led investment in Alberta – particularly when the proponent has undertaken extensive planning and clearly demonstrated its economic viability.”

According to a press release from the Alberta government, “this is an important step in the approval process.”  It will allow the Calgary-based company to proceed to the next stages of development, including the final investment decision.  As a result of the decision, MEG Energy can apply for other environmental licences and local area development permits.

The development plans had to be approved by the Alberta Energy Regulator prior to submission for government approval.

The company says the operation will also feature associated steam cogeneration, well pads, water treatment and other related facilities.



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