REALIZING THE POTENTIAL INVESTOR PRESENTATION May 2015
Realizing the PotenMal Low cost structure, low sustaining capital and signicant nancial liquidity set strong foundaMon in the current price environment Targeted 2015 produc7on volumes of 78,000 to 82,000 bpd*, 12% above 2014s…
ProducMon and Cash Flow Growth 2015 Target: 78,000 to 82,000 bpd 5
SubstanMal Reserves and Resources 3.0 billion barrels 2P and 3.8 billion barrels conMngent resources* idenMed to-date * Best-es;mate con;ngent resources INVESTOR PRESENTATION 2015 Based on GLJ Reserve Report dated eec;ve as…
RISER IniMaMve Reduce the steam-oil-ra7o of our exis7ng opera7ons using our proprietary eMSAGP technology Redeploy freed-up steam to new, pre-drilled SAGD wells to further increase produc7on Debottleneck central…
Growth Focus on ExisMng Assets ConMnued applicaMon of RISER iniMaMve supports future growth Increase produc7on at lower costs Accelerate produc7on in lower price environments Increase total resource recovery rates Reduced…
Phase 1 eMSAGP Performance Steam injecMon ChrisMna Lake Pad A reduced by 55% since the implementaMon of eMSAGP A3 A3N* Phase 1 SAGD wells A2 A2N Inll wells A1 A1N A3N* A7N* A2N Inll wells NCG/steam…
Cash OperaMng Netbacks Strong operaMng performance and low cost structure enable MEG to navigate through a low and volaMle price environment Business Environment 2014 1Q15 WTI US/bbl 93.00 48.63 AECO C/mcf 4.50 2.74 FX C/US…
Sustaining Capital Low decline rates and low sustaining capital enables MEG to maintain and grow producMon in a low oil price environment *Cold heavy oil produc;on with sand Source: RBC Capital Markets Internal Database 11
MarkeMng Strategy MEGs Hub & Spoke strategy focuses on diversifying market access to get to world-priced markets Pipeline HUB U.S. Midwest accessible via existing pipelines U.S. Gulf Coast access via Flanagan South / Access…
Canadian & U.S. Crude Oil Pipelines and Proposals INVESTOR PRESENTATION 2015 Source: Canadian Associa;on of Petroleum Producers 13
Rail and Barge to Market Adding exibility to the markeMng strategy INVESTOR PRESENTATION 2015 14
World Pricing for Alberta Heavy Oil MEG and the industry have improved realized bitumen prices by gaining access to world heavy oil pricing in the Gulf Coast Dec 2013 January 2014 Sep / Oct 2014 Canadian exports MEG began…
Strong Financial PosiMon Signicant liquidity oers exibility through various market condiMons Cash balance of 471 million at March 31st, 2015 Rela7vely low-level of sustaining and maintenance capital 5 year, US2.5 billion undrawn…
Liquidity and Debt In C billions, assume US1 = C1.2683 Liquidity As of March 31, 2015 Cash and cash equivalents 0.47 Undrawn revolving credit facility 3.17 3.64 Outstanding Debt Senior secured term loan due 2020 1.60 6.5%…
Thermal Project Breakeven WTI Oil Prices Analysis by TD SecuriMes Source: TD Securi7es, Oil Sands WTI Break-even Report January 2015 Esmates based on TD 2015 forecast. Ignores G&A, interest, taxes and reclamaon. Assumes 30%…
Enhanced Modied Steam & Gas Push A combinaMon of proven technologies to reduce SOR Non-condensable gas (NCG) and inll wells are proven technologies, typically carried out as a wind-down process after 6 - 8 years of SAGD…
High Quality Reservoirs Core hole drilling idenMes similar characterisMcs at ChrisMna Lake and Surmont Average Pay Bitumen Porosity Permeability Thickness Satura7on (%) (millidarcies) (metres) (%) ChrisMna Lake 26 72 34 3,000…
ChrisMna Lake Property 6 Miles MEG Oil Sands Leases ChrisMna Lake 80 sec7ons 964 ver7cal wells drilled to June 30th 2014 831 wells cored to June 30th 2014 Phase 2 Phase 1 Wabiskaw / McMurray cores Phase 2B 2014…
Surmont Property 5 miles MEG South Surmont Oil Sands 25 sec7ons Leases 138 ver7cal wells drilled to June 30th 2014 89 wells cored to June 30th 2014 Wabiskaw / McMurray cores 2014 delinea7on wells INVESTOR…
Comparing Crudes Wells to Wheels SAGD with cogeneraMon produces one of the lowest greenhouse gas intensity barrels in the industry *Source: Jacobs Consultancy, Life Cycle Assessment of North America and Imported Crudes…
Notes: INVESTOR PRESENTATION 2015
Investor Relations Contacts Helen Kelly Director, Investor Relations 403.767.6206 helen.kellymegenergy.com John Rogers VP, Investor Relations and External Communications 403.770.5335 john.rogersmegenergy.com…
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