REALIZING THE POTENTIAL INVESTOR INVESTOR PRESENTATION PRESENTATION November 2014 JULY 2014
Realizing the Potential 2014 and beyond Targeted 2014 annual production volumes of 65,000 to 70,000 bpd (up from 60,000 to 65,000 bpd), more than 100% above 2013 guidance, driven by the ramp-up of Christina Lake Phase 2B, building to…
High Quality 100%-Owned Oil Sands Assets 2.9 billion barrels 2P and 3.7 billion barrels contingent resources* identified to-date Christina Lake Phase 1, 2 and 2B currently in production 2014 production guidance 65,000 to 70,000 bpd…
Geology Confirms High Quality Reservoirs Core hole drilling identifies similar characteristics at Christina Lake and Surmont Average Pay Bitumen Porosity Permeability Thickness Saturation (%) (millidarcies) (metres) (%) Christina…
RISER the right way to grow A three-part initiative Reduce the steam-oil-ratio of our existing operations using our proprietary eMSAGP technology Redeploy freed-up steam to new, pre-drilled SAGD wells to further increase…
Benefits of the RISER Initiative The RISER initiative focuses investment on projects which are expected to generate the highest returns and lead to near-term production and cash flow gains Anticipated Benefits Lower capital cost Lower…
Phase 1 eMSAGP Performance Steam injection reduced by Christina Lake Pad A 55% since the implementation of eMSAGP A3N* A3 Phase 1 A2N Infill A2 SAGD wells wells A1N A3N* A1 A7N* A2N Infill wells NCG/steam co-injection…
Strong Cash Operating Netbacks Low-cost structure and hub-and-spoke marketing strategy delivers high netbacks Business Environment 2014 YTD WTI US/bbl 99.61 AECO C/mcf 4.80 FX C/US 1.09 Differential WTI/Blend % 26% Diluent price %…
Marketing Strategy MEGs Hub & Spoke strategy focuses on diversifying market access, bypassing pipeline congestion to get to world-priced markets HUB Pipeline U.S. Midwest accessible via existing pipelines Access Pipeline U.S. Gulf…
Canadian & U.S Crude Oil Pipelines and Proposals Source: Canadian Association of Petroleum Producers INVESTOR PRESENTATION 2014 12
North American Rail Network Source: Rail Association of Canada INVESTOR PRESENTATION 2014 13
Rail Loading Terminals in Western Canada 1 mmbpd of rail offloading capacity, further expandable to 1.4 mmbpd Rail Capacity from Western Canada Source: Canadian Association of Petroleum Producers INVESTOR PRESENTATION 2014 14
2014 Capital Budget and Operational Guidance Funding growth beyond near-term 80,000 bpd target Capital Investment Summary millions Operational Guidance Intraphase Growth RISER 2B 340 Production Portfolio Growth 2014 Budget 65,000 to…
Financing Philosophy Conservative principles provide flexibility through various market conditions Pre-funding of capital programs Maintain significant liquidity at all times All debt is free of maintenance financial covenants…
Financial Snapshot Liquidity As of September 30, 2014 Cash and cash equivalents 0.78 Undrawn line of credit 2.24 Letters of credit outstanding (0.12) 2.90 Outstanding Debt Senior secured term loan due 2020 1.42 6.5% Senior…
Debt Maturity Schedule No debt maturity until 2020 1,197* US in millions 1,000 Term loan* 800 750 Senior unsecured notes 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 * Projected amortized term loan balance at…
APPENDICES
Rail Loading Terminals in Western Canada Major* existing and proposed crude loading terminals * Facilities with less than 15,000 b/d are not shown. ** Capacities of facilities are not exactly comparable due to differences within…
Enhanced Modified Steam and Gas Push (eMSAGP)* A combination of proven technologies to reduce SOR Non-condensable gas (NCG) and infill wells are proven technologies, typically carried out as a wind-down process after 6 - 8 years of SAGD…
Christina Lake Delineation Wells 80 delineation wells drilled during the winter of 2014 6 Miles MEG Oil Sands Leases Christina Lake 80 sections 964 vertical wells drilled to June 30th 2014 831 wells cored to June 30th 2014 Phase…
Surmont Delineation Wells 8 delineation wells drilled during the winter of 2014 5 miles MEG South Surmont Oil Sands Leases 25 sections 138 vertical wells drilled to June 30th 2014 89 wells cored to June 30th 2014 Wabiskaw /…
Comparing Crudes Wells to Wheels SAGD with cogeneration produces one of the lowest greenhouse gas intensity barrels in the industry Conventional* In Situ Unconventional* 114 106 105 104 102 102 102 Unit Measurement (g/MJ) 98…
Notes: INVESTOR PRESENTATION 2014
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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