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April 27, 2022 (Calgary, AB) 

MEG Energy has officially joined PadX Partnership, a collaboration of leading energy sector organizations working to accelerate innovation of SAGD well pad design and execution through Western Canada. PadX Partnership is spearheaded by Scovan Engineering Inc., a Calgary, AB based engineering firm with a focus on advancing emerging energy. MEG joins the existing consortium members.

MEG joined PadX partnership as part of its investment into the future of responsible development of energy projects. MEG sees its value and ability to drive cost reductions, reduce environmental footprint and incorporate technologies to improve operational performance.

”We are excited to be part of PadX Partnership as a continued part of our commitment to responsible oil production on our path to Net Zero,” says Darlene Gates, Chief Operating Officer of MEG Energy. “These opportunities enable us to increase shareholder value by focusing on cost reduction efforts within our operations while at the same continuing with the sustainable development of well pads.” 

The PadX group’s mission is to collaboratively develop the next generation of standardized, sustainable and intelligent well pads as a response to the ever-changing energy landscape. With an increasing focus on environmental stewardship, cost competitiveness and a goal to reduce GHG’s, the group has come together to maximize their value as a collective and to be leaders in sustainable development for SAGD.

MEG’s commitment to PadX Partnership will further accelerate the execution timeframe for the program and will positively impact the benefits offered by the program to industry. The consortium will benefit from MEG’s experience and commitment to safety and the environment.

About PadX Partnership

PadX Partnership is targeting a reduction in the capital cost of well pads by 50%. The design Includes a state-of-art automation system that uses AI/ML for self-optimization and performance improvements.

The program will drive a true manufacturing strategy that includes manufacturing modules on spec at a volume that drives productivity and reduces costs at a rate that has never been done before. This will also allow producers to reduce the time between committing to capital equipment and generating revenue. With modules available from inventory, overall project development and execution could be done in three months or less. 

“Right now, we are at a critical point in history for the energy industry where we need to fundamentally change not only our design but our way of thinking of the way we approach our projects for the next ten years.” Comments Valerie Stewart, VP Strategy &  Development, Scovan. 

“Our vision is to drive a true manufacturing approach to projects. We can start not only reducing the footprint and GHGs associated with these projects but we can start making them faster and we can do that at a scale that hasn’t been seen yet in this industry. Our targets are to reduce the costs of our well pad projects by half.” Adds Donovan Nielsen, President, Scovan. 

About Scovan Engineering Inc.

Scovan provides engineering, procurement, and construction management services for the emerging energy industry. Scovan specializes in the design and execution of energy-related industrial facilities and offers innovation and experience to project developments. Scovan’s focus is to enable our clients to excel in the planning and implementation of their energy projects. Scovan is an expert in energy and has the track record to give their clients the confidence and certainty they need for their developments. Scovan is Forward Engineering. 
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About MEG

MEG is an energy company focused on sustainable in situ thermal oil production in the southern Athabasca oil region of Alberta, Canada. MEG is actively developing innovative enhanced oil recovery projects that utilize steam-assisted gravity drainage extraction methods to improve the responsible economic recovery of oil as well as lower carbon emissions. MEG transports and sells thermal oil (AWB) to customers throughout North America and internationally. MEG’s common shares are listed on the Toronto Stock Exchange under the symbol “MEG” (TSX: MEG). 

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For more information on PadX Partnership, please contact:

Valerie Stewart
VP Strategy & Development, Scovan
[email protected]