Overview Innovative. Sustainable. Profitable. Regulatory approval in place or in process for nearly 500,000 bpd of potential resource development Moving away from large scale growth projects towards a continuous growth model The…
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 Phase 2B eMSAGP Growth eMSAGP is a reservoir enhancement technology involving the injection of a non-condensable gas and the…
2018 Capital and Operational Guidance Capital Investment Plan Operational Guidance Supports production to 100 kbpd Sets the stage for 8 -10% growth in 2019 4.75 to millions 5.25 per barrel Non-energy operating costs eMSAGP growth…
Profitable Production Growth Evolving technologies allow for future expansions on a continuous basis as opposed to project by project at lower capital costs Anticipated 2018 exit production growth of 10 -12% INVESTOR…
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…
eMVAPEX Conceptual Model A Modification of eMSAGP Inject condensable gas (CG) to: 2 Warmed bitumen Freed-up steam 1 mixed with light 3 is re-diverted to Maintain reservoir pressure, reducing steam injection to near zero…
Potential eMVAPEX Benefits Further reduction of SOR over eMSAGP Lower capital Lower Lower carbon requirements operating emission to grow costs intensity Lower steam requirement Reduced energy costs Significantly lower per barrel…
eMVAPEX Pilot Phase 1 : AP2 with infill Phase 2 : Add AP1, AP3 Phase 3 : Convert the remainder of wells AP1N and AP2N on and two associated infill wells Pad AP to eMVAPEX and add associated either side (November 2016) AP0N, AP3N (August…
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…
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…
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…
Notes INVESTOR PRESENTATION 2017 22
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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