Substantial Reserves and Resources Regulatory approval in place or in process for nearly 500,000 bpd of potential resource development * 2017 production guidance Proved Probable 1,468 1,517 Proved and Probable Evaluated by GLJ…
Impact of Technology on Business Model INVESTOR PRESENTATION 2017 6
High-Return, Short-Cycle Growth Near-term opportunities to grow Christina Lake production to 100 kbpd eMSAGP Growth (fully-funded) eMSAGP is a reservoir enhancement technology involving the injection of a non-condensable gas and the…
Profitable Production Growth Evolving technologies allow for future expansions on a continuous basis as opposed to project by project at lower capital costs The fully-funded 20,000 bpd eMSAGP growth initiative at Christina Lake Phase 2B…
Impact of Highly Economic Production Growth Incremental production expected to add minimal operating costs, generates very strong netbacks and is highly accretive to cash flow Illustrative impact of production growth on netbacks.…
eMSAGP* Model * enhanced Modified Steam and Gas Push, Canadian Patent 2,776,704 A Modification of SAGD ** Steam and Gas Push (SAGP) is an invention by Dr. Roger Butler Inject non-condensable gas (NCG) Warmed bitumen Freed-up…
Phase 1 and 2 eMSAGP Performance eMSAGP increases recovery at lower SORs Phase 1 observed a SOR reduction of 50% Phases 1 and 2 Recovery Average during the period which eMSAGP has been Overall Performance to Date SOR applied with an…
Net GHG Intensity Performance eMSAGP and cogeneration have enabled MEG to lower its GHG intensity 25% below in situ industry average * Phase start-up: higher steam requirements with low initial production Sources: MEGs net GHG data…
Continued Efficiency Gains Drive Lower Costs Ongoing efficiency gains drive lower operating costs and reduce MEGs breakeven costs in a low oil price environment * Per barrel costs and netbacks are calculated based on sales volume **…
Cash Flow Breakeven Highly-economic eMSAGP growth to further reduce cash costs by C4-5 per barrel as production ramps to 100 kbpd 2017 YTD actual results in C This chart has been prepared for illustration purposes only and has been…
2017 Capital and Operational Guidance Capital Investment Plan Operational Guidance 590 4.75 to million 5.00 510 per barrel Non-energy operating costs million Twice reduced from 5.75 to 6.75 80million reduction 80,000 to…
Debt Maturity and Ratings Debt refinancing retains covenant-lite Credit Ratings as of October 26, 2017 structure, extends weighted-average life of debt maturity from 4 to 6 years S&P BB- stable with minimal increase in interest cost…
Active Hedging Program MEGs objective is to set a floor price, at or above cash costs, while leaving room to take advantage of improving oil prices Crude oil hedges in place as of October 26, 2017 in US * Percentage of hedged volume…
Notes INVESTOR PRESENTATION 2017 18
Investor Relations 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 www.megenergy.com/investors
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