Strathcona Resources Ltd. Announces First Steam at Meota Central and Provides Update on Lloydminster Thermal Business
CALGARY, AB, July 8, 2026 /CNW/ - Strathcona Resources Ltd. ("Strathcona" or the "Company") (TSX: SCR) today announced it successfully achieved first steam at its Meota Central project on June 6, 2026. Construction of Meota Central is now complete, with first oil expected late in the third quarter of 2026.
Construction at Meota Central was completed at a total installed cost of approximately $345 million (3% under budget) over the course of 18 months (2 months, or 9% ahead of budget). The project was completed safely, with zero lost time incidents during approximately 370,000 man-hours of work during construction.
Meota Central is targeting a peak oil rate of approximately 13,000 bbls / d by mid-2027, exploiting a high-quality Waseca reservoir with a proved plus probable reserves life index of approximately 30 years at nameplate capacity. Meota Central represents an important milestone in Strathcona's long-term plan to grow total corporate production from approximately 125 Mbbls / d in 2026 to 300 Mbbls / d by 2035 (a 10% compound annual growth rate).
Strathcona will be hosting analysts and investors for a field tour of Meota Central and its Hamlin Rail Terminal on July 9, 2026. A presentation providing more details on Strathcona's Lloydminster Thermal business will be shared during this field tour, which has been posted on Strathcona's website and which Strathcona shareholders are encouraged to review.
About Strathcona
Strathcona is one of North America's fastest growing pure play heavy oil producers with operations focused on thermal oil and enhanced oil recovery. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange (TSX).
For more information about Strathcona, visit www.strathconaresources.com.
Advisories
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. The forward-looking information in this press release is based on Strathcona's current internal expectations, estimates, projections, assumptions and beliefs. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information are reasonable as of the time of such information, but no assurance can be given that these factors, expectations and assumptions will prove to be correct, and such forward-looking information included in this press release should not be unduly relied upon.
The use of any of the words "expect", "target", "believe", "plan", "estimate", "may", or "will" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the generality of the foregoing, this press release contains forward-looking information pertaining to the following: the expectation that first oil at Meota Central will occur late in the third quarter of 2026; the target peak oil rate of approximately 13,000 bbls / d by mid-2027; the Waseca reservoir's proved plus probable reserves life index of approximately 30 years at nameplate capacity; Strathcona's long-term plan to grow total corporate production from approximately 125 Mbbls / d in 2026 to 300 Mbbls / d by 2035 (a 10% compound annual growth rate); and Strathcona's planned field tour for analysts and investors.
All forward-looking information reflects Strathcona's beliefs and assumptions based on information available at the time the applicable forward-looking information is disclosed and in light of the Company's current expectations with respect to such things as: the performance of the Meota Central project in line with reservoir modelling and engineering expectations; the timing and cost of facility ramp-up; commodity price assumptions; the availability of capital and labour; the governmental, regulatory and legal environment; and general economic conditions. Management believes that its assumptions and expectations reflected in the forward-looking information contained herein are reasonable based on the information available on the date such information is provided and the process used to prepare the information. However, it cannot assure readers that these expectations will prove to be correct.
The forward-looking information included in this press release is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including, without limitation: risks related to the performance of the Meota Central project; changes in commodity prices; changes in the demand for or supply of Strathcona's products; the continued impact, or further deterioration, in global economic and market conditions, including from inflation and/or certain geopolitical conflicts, such as the conflict in the Middle East, including the closure of the Strait of Hormuz, the ongoing Russia/Ukraine conflict, and other heightened geopolitical risks, including the imposition of tariffs or other trade barriers, and the ability of the Company to carry on operations as contemplated in light of the foregoing; determinations by the Organization of the Petroleum Exporting Countries and other countries as to production levels; unanticipated operating results or production declines; changes in tax or environmental laws, climate change, royalty rates or other regulatory matters; changes in Strathcona's development plans or by third party operators of Strathcona's properties; failure to achieve anticipated results of its operations; competition from other producers; inability to retain drilling rigs and other services; increased debt levels or debt service requirements; inflation; changes in foreign exchange rates; inaccurate estimation of Strathcona's oil and gas reserve and contingent resource volumes; limited, unfavourable or a lack of access to capital markets or other sources of capital; increased costs; a lack of adequate insurance coverage; the impact of competitors; and the other risks discussed under the "Risk Factors" section in Strathcona's Management's Discussion & Analysis and Annual Information Form, each for the year ended December 31, 2025, and from time to time in Strathcona's public disclosure documents, which are available at www.sedarplus.ca.
This press release contains metrics commonly used in the crude oil and natural gas industry, including "reserves life index". These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Readers are cautioned as to the reliability of oil and gas metrics used in this presentation. Management of Strathcona uses these oil and gas metrics for its own performance measurements and to provide investors with measures to compare Strathcona's projected performance over time; however, such measures are not reliable indicators of Strathcona's future performance, which may not compare to Strathcona's performance in previous periods, and therefore should not be unduly relied upon. "Reserves life index" is calculated by dividing the applicable reserves and/or contingent resources by expected production.
The foregoing risks should not be construed as exhaustive. The forward-looking information contained in this press release is provided as of the date hereof and Strathcona does not assume any obligation to publicly update or to revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
SOURCE Strathcona Resources Ltd.
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