Slide 0 by wuxiangyu


									March 2011
This presentation is not, and under no circumstances is to be construed to be a prospectus, offering memorandum, advertisement or public offering of any
securities of MEG Energy Corp. ("MEG"). Neither the United States Securities and Exchange Commission (the "SEC") nor any other state securities
regulator nor any securities regulatory authority in Canada or elsewhere has assessed the merits of MEG's securities or has reviewed or made any
determination as to the truthfulness or completeness of the disclosure in this document. Any representation to the contrary is an offence.

Recipients of this presentation are not to construe the contents of this presentation as legal, tax or investment advice and recipients should consult their own
advisors in this regard.

MEG has not registered (and has no current intention to register) its securities under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), or any state securities or "blue sky" laws and MEG is not registered under the United States Investment Act of 1940, as amended. The
securities of MEG may not be offered or sold in the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

Without limiting the foregoing, please be advised that certain financial information relating to MEG contained in this presentation was prepared in
accordance with Canadian generally accepted accounting principles, which differ from generally accepted accounting principles in the United States and
elsewhere. Accordingly, financial information included in this document may not be comparable to financial information of United States issuers.

The information concerning petroleum reserves and resources appearing in this document was derived from a report of GLJ Petroleum Consultants Ltd.
dated as of December 31, 2010, which has been prepared in accordance with the Canadian Securities Administrators National Instrument 51-101 entitled
Standards of Disclosure for Oil and Gas Activities ("NI 51-101") at that time. The standards of NI 51-101 differ from the standards of the SEC and, among
other things, NI 51-101 permits disclosure of estimates of resources and probable reserves that have not been demonstrated to be capable of economic
extraction to the extent necessary to be categorized as "proved reserves". Such estimates may not be included in filings made with the SEC by other
companies. As a consequence, information included in this presentation concerning our petroleum reserves and resources may not be comparable to
information made by public issuers subject to the reporting and disclosure requirements of the SEC.

There are significant differences in the criteria associated with the classification of reserves and contingent resources, Contingent resource estimates
involve additional risk, specifically the risk of not achieving commerciality, not applicable to reserves estimates. There is no certainty that it will be
commercially viable to produce any portion of the resources. The estimates of reserves and future net revenue from individual properties may not reflect the
same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation. Further information regarding
the estimates and classification of MEG’s reserves and resources is contained within the Corporation’s public disclosure documents on file with Canadian
securities regulatory authorities, and in particular, within the “Risk Factors”, “Industry Regulation” and “Independent Reserve and Resource Evaluation”
within MEG’s supplemented prospectus dated July 28, 2010 (the “Prospectus”). MEG’s public disclosure documents, including the Prospectus, may be
accessed through the SEDAR website (, at MEG’s website ( or by contacting MEG’s investor relations department.

Anticipated netbacks are calculated by adding anticipated revenues and other income and subtracting anticipated royalties, operating costs and
transportation costs from such amount.

Disclosure Advisories
Forward-Looking Statements

Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or MEG's future performance. All statements other than
statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may",
"will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements.
These statements involve 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
statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be unduly relied upon.
These statements speak only as of the date of this presentation. In addition, this presentation may contain forward-looking statements and forward-looking information attributed to third party
industry sources.

In particular, this presentation contains forward-looking statements pertaining to the following: the reserve and resource potential of MEG's assets; the bitumen production and production
capacity of MEG's assets; MEG's growth strategy and opportunities; MEG's capital expenditure programs and future capital requirements; the estimated quantity of MEG's proved reserves,
probable reserves and contingent resources; MEG's projections of commodity prices, costs and netbacks; MEG's estimates of future interest and foreign exchange rates; MEG's environmental
considerations, including water usage and greenhouse gas emissions; MEG's blending capability for its bitumen diluent blend; the timing and size of certain of MEG's operations and phases,
including its planned bitumen development projects, and the levels of anticipated production; supply and demand fundamentals for crude oil, bitumen blend, natural gas, condensate and other
diluents; MEG's access to adequate pipeline capacity; MEG's access to third-party infrastructure; industry conditions including with respect to project development; potential future markets for
MEG's products; the planned construction of MEG's facilities; MEG's drilling plans; MEG's plans for, and results of, exploration and development activities; the use of the proceeds of the public
offering; the expected application timeframe for the Surmont Project and for the Growth Properties; the timing for receipt of various regulatory approvals, including receipt of various regulatory
approvals for the Christina Lake Project, Surmont Project and Growth Properties; MEG's treatment under governmental regulatory and royalty regimes and tax laws; and MEG's future general
and administrative expenses.

With respect to forward-looking statements and forward-looking information contained in this presentation, assumptions have been made regarding, among other things: future crude oil, bitumen
blend, natural gas, condensate and other diluent prices; MEG's ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the regulatory framework governing royalties,
taxes and environmental matters in the jurisdictions in which MEG conducts and will conduct its business; MEG's ability to market production of bitumen blend successfully to customers; MEG's
future production levels; the applicability of technologies for the recovery and production of MEG's reserves and resources; the recoverability of MEG's reserves and resources; operating costs;
future capital expenditures to be made by MEG; future sources of funding for MEG's capital programs; MEG's future debt levels; geological and engineering estimates in respect of MEG's
reserves and resources; the geography of the areas in which MEG is conducting exploration and development activities; the impact of increasing competition on MEG; and MEG's ability to obtain
financing on acceptable terms.

In addition, information and statements in this presentation relating to "reserves" and "resources" are deemed to be forward-looking information and statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and that the reserves and resources
described can be profitably produced in the future.

The forward-looking statements included in this presentation are expressly qualified by this cautionary statement and are made as of the date of this presentation. MEG does not undertake any
obligation to publicly update or revise any forward-looking statements except as required by applicable securities laws.

Market Data

This presentation contains statistical data, market research and industry forecasts that were obtained from government or other industry publications and reports or based on estimates derived
from such publications and reports and management's knowledge of, and experience in, the markets in which MEG operates. Government and industry publications and reports generally
indicate that they have obtained their information from sources believed to be reliable, but do not guarantee the accuracy and completeness of their information. Often, such information is
provided subject to specific terms and conditions limiting the liability of the provider, disclaiming any responsibility for such information, and/or limiting a third party's ability to rely on such
information. None of the authors of such publications and reports has provided any form of consultation, advice or counsel regarding any aspect of, or is in any way whatsoever associated with,
MEG. Further, certain of these organizations are advisors to participants in the oil sands industry, and they may present information in a manner that is more favourable to that industry than
would be presented by an independent source. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected
to increase as the length of the forecast period increases. While management believes this data to be reliable, market and industry data is subject to variations and cannot be verified due to
limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any market or other survey.
Accordingly, the accuracy, currency and completeness of this information cannot be guaranteed. None of MEG, its affiliates or the underwriters has independently verified any of the data from
third party sources referred to in this presentation or ascertained the underlying assumptions relied upon by such sources.                                                                                  2
                       MEG Highlights
                                          100% ownership of over 800 square miles of oil sands leases
                       World-Scale Oil
                       Resource           Steam assisted gravity drainage (“SAGD”) technology
                       Opportunity        1.9 billion bbls of 2P and 3.7 billion bbls of contingent resources (best estimate)
MEG is a world-                           Pre-tax PV-10%: $12.1 billion of 2P and $13.3 billion of contingent resources (best estimate)
class, pure-play oil
                       Strong Initial
sands company          Development        Christina Lake Phase 2 ramp up industry leading 9 months to full production rates
                       Results            Christina Lake produced 27,744 bbls/d at Steam-to-Oil Ratio (“SOR”) of 2.3 in fourth quarter
                                          MEG plans for 260,000 bbls/d of production capacity by 2020 at Christina Lake and Surmont
                       Staged Growth
                                          Significant additional development opportunities at Surmont and Growth Properties
                       Access Pipeline:
                                          50/50 owner of 215-mile dual pipeline
                       Strategic &
                                          Provides direct pipeline access to condensate
                       Benefits           Delivers MEG’s bitumen blend to Edmonton hub

                       Strong Financial   Cash and short term investments of $1.4 billion provides funding for 35,000 bbls/d Christina Lake
                       Position &         Phase 2B expansion
                       Sponsorship        Revolver capacity of US$175 million (12/31/2010)

                       Management         Significant expertise in all aspects of oil sands exploration and development
                       Has a Proven       Same team that designed and built existing phases is executing future phases
                       Track Record

                Steam Assisted Gravity Drainage (“SAGD”)
                    MEG utilizes SAGD, a form of in situ     SAGD Process
MEG only uses           ~80% of Alberta’s oil sands are
SAGD in situ            accessible with in situ production
methods             In situ provides:
                    1. Scalability
                    2. Low capital intensity
                    3. Low labor costs
                    4. Low levels of environmental
                ●   SAGD is benefiting from continued
                    technological advancements resulting
                    in declining SORs
                        Recent advancements include infill
                        wells, non-condensable gas
                        injection, ESP, etc.

                     Strong Environmental Profile
                           SAGD extraction methods have several key environmental advantages:
                             – Only 10-15% land surface usage
                                   – One well pad can service an area the size of 96 NFL football fields and will recover
MEG is proactively                    approximately 9-12 MMbbls of bitumen
managing its                 – ~90% of the water used for steam in “steady-state” operations is recycled water, and the
environmental                   remainder is from non-potable sources
impact                     MEG’s projects have several additional environmental advantages
                             – Lower SORs = lower natural gas emissions
                             – Power cogeneration: natural gas used to generate 2 energy sources (bitumen &
                             – Clean burn technologies reduce GHG emissions
                                                                     Aerial View of Pad A Footprint at Christina Lake

                     Pad represents ~9% of reservoir drainage area

                    Asset Overview
                                                                                      Evaluated by GLJ (December 31, 2010 )
                                                                                                                        0                                                                  10 miles
                                                                                      Not Yet Evaluated

MEG assets are in                                                                                                  HWY 63
well-defined,                                                                                                                                                                          MEG
proven SAGD                                                                                         MEG Growth Properties                                                             Surmont
producing areas
                                                                                                                      Thornbury                                    HWY 881
                                                                                   Portage                                                                                             Lake
                                            Alberta                                                                                                                  Christina Lake

                                                              basca                                                                        May
                                                                                                                                           River         West          Devon
                                               Peac e
                                                                                                                                                        Jackfish                Jackfish

                                      Gran d
                                      Prairie                      Cold

                                                                                                                                                                                           East Kirby

                                     300 km

                                      Christina Lake                                                      Surmont                                                Growth Properties
                     Lease Holdings                  51,200               acres    Lease Holdings – Evaluated      20,480 acres                    Lease Holdings – Evaluated 192,000          acres
                     2P Reserves                      1,919               MMbbls   Contingent Resources (best est.) 837 MMbbls                     Lease Holdings – Unevaluated 289,280        acres
                     Contingent Resources (best est.) 1,061               MMbbls   Resources PV-10%(1)             $3,511 $MM                      Total Lease Holdings         481,280        acres
                     2P Reserves PV-10%(1)         $12,131                $MM                                                                      Contingent Resources (best est.) 1,818      MMbbls
                     Contingent Resources PV-10%(1)$2,821                 $MM                                                                      Resources PV-10%(1)            $6,934       $MM

                    (1)   Based on GLJ Reserve Report dated December 31, 2010. Contingent resources (best estimate) PV-10% calculated on a before-tax basis.                                            6
                    Resource Base Has Grown Significantly
                     As at 12/31/10, PV-10% of 2P reserves was $12.1 bn and $13.3 bn of contingent resources (best
MEG has                                    2P Reserves                                       Contingent Resources
demonstrated a
strong track         (mmbbls)
record of reserve                                                                                                       3,723      3,716
and resource
growth                                                                                                      3,058
                                                                                    2,517                               1,721
                                                                                                548        1,253
                                                                                    59          554
                                                  1,532                                                                   647      647
                                        1,013             1,143                     1,969
                                                  1,099                                       1,674
                                         690                                1,430                                       1,355
                                466                                                                        1,217                   1,061
                                410                                  606
                                                  433      549
                                 56      323
                                2006     2007     2008    2009      2010            2006        2007         2008        2009      2010

                                Proven reserves       Probable reserves             Christina Lake       Surmont          Growth Properties
                                       Christina Lake Only
                                                                                     Note:Contingent Resources are Best Estimate
                  Production Ramp-Up

Production has
ramped up ahead
of budget                               25000           Actual

                  Bitumen Rate bbls/d



                                                                                             Scheduled Plant

                                           1-Aug-09   1-Nov-09   1-Feb-10   4-May-10
                                                                            1-May-10    4-Aug-10
                                                                                       1-Aug-10         4-Nov-10
                     Current SOR Performance


MEG has achieved
lower than
budgeted SORs to-                                                                                                             Budget
date and expects                                                       8
                      Steam-Oil-Ratio (including Circulation Wells)

similar results to
comparable                                                             7
projects in the
region                                                                 6






                                                                      1-Aug-09   1-Nov-09   1-Feb-10   4-May-10
                                                                                                       1-May-10    4-Aug-10
                                                                                                                  1-Aug-10             4-Nov-10
                    Project Development Summary
                                                                       Preliminary Project Development Schedule(1)

MEG believes a
                                          2010          2011           2012          2013           2014          2015           2016          2017           2018   2019   2020
staged              Christina Lake
development plan
will help to           Phase 2B
mitigate capital,
operating and
                       Phase 3A
financing risks
and allows MEG to
                       Phase 3B
                       Phase 3C


                                                                        Regulatory Approval                       Engineering                  Construction(3)

                         Notes: Timing of future projects is subject to further refinement within each given year.
                         (1)    Plans to develop the Growth Properties are currently being evaluated.
                         (2)    Represents regulatory approvals for Christina Lake Phase 3, which is currently anticipated to be developed in three phases.
                         (3)    The construction schedule does not include initial procurement and site clearing activities.
                     Growth Strategy
                       Christina Lake Project
                         Regulatory approvals received for Phase 2B 35,000 bbls/d expansion
MEG believes that             Construction of Phase 2B has commenced with initial production in first half 2013
Christina Lake and
Surmont will
                              Commitments for 90% of all major equipment in place
support 260,000               Phase 3 application submitted in 2008, approval expected 2011
bbls/d of                     MEG believes Phase 3 will expand production capacity to ~210,000 bbls/d by 2020
production for
over 30 years (1)      Surmont Project
                              MEG plans to file regulatory application for 100,000 bbls/d project in 2011
                                   50,000 bbls/d planned for first phase
                                   MEG acquired 13 square miles of additional leases in Q2 2010
                              MEG anticipates utilizing experience gained at Christina Lake

                       Growth Properties
                              1.8 billion barrels of contingent resources (best estimate)
                                       Only 40% of the acreage has been evaluated by GLJ to date
                              Substantial exploration and development potential

                     (1) Assuming an initial 50,000 bbls/d project at Surmont.
                    Access Pipeline Overview
                    215-mile dual pipeline (50/50 JV with
                    Devon Energy)
                    Current capacity (net to MEG): 78,000
Access pipeline     bbls/d blended bitumen & 35,000
provides cost and   bbls/d condensate
revenue                    Incremental pumping stations
advantages unique          can increase capacity to
to MEG and our             197,000 bbls/d and 103,000
partner Devon              bbls/d, respectively
                           Can be extended to provide
                           economic benefits to Surmont
                           and the Growth Properties
                    Key cost advantages:
                           Access to condensate, which is
                           priced similar to SCO (per
                           volume) but used in lower
                           volumes than SCO to blend with
                           Access to multiple sources of
                           Control of dilbit transportation
                    Key revenue advantage:
                           Access to larger number of
                           upgrading and refining markets
                      Cogeneration Overview
                      MEG has built cogeneration facilities to
                      complement and enhance its economics                            Cogeneration flow diagram
MEG employs
                      Cogen benefits:
cogeneration to
                      1. Produces heat used for steam generation                   SAGD
electricity used in           Existing 85 MW cogen facility produces
its operations,               approximately 70% of the steam for Phase 1
with surplus sold             and 2 SAGD                                              Recycled     Steam       Electricity
to the grid                                                                           water
                              Results in more efficient use of natural gas
                              Generates GHG emissions credits
                      2. Produces electricity used in operations                   Boiler
                                                                                                      85 MW Gas
                              Phases 1 and 2 combined utilize ~10-12 MW                                 Turbine
                      3. Surplus sold into Alberta Power Pool electricity grid
                              Partially offsets natural gas and power costs
                                                                                                 Natural Gas Surplus
                              Partial hedges against fuel price changes                                      Electricity
                              In the third quarter of 2010, resulted in $2/bbl
                              credit against operating costs                                           Alberta Power
                                                                                                       Pool electricity

2011 Capital Investment Budget
 Total Capital Investment for 2011                 $900 MM
 Expand and further define resource base
   - Core hole drilling                           $80-90 MM
 Staged production growth
   - Christina Lake Phase 2B expansion             $450 MM
   - Infrastructure:                               $200 MM
        - Operation staff housing
        - Construction camp
        - Pumping station access pipeline
        - Future phases preliminary engineering
 Excellence in Operations
   - Maintenance and sustaining capital           $40-50 MM

MEG’s Christina Lake Project


                      Appendix 1 - Christina Lake Delineation Wells (2010)
                                                 10 miles

•80 sections                                         MEG Oil Sands Leases
•527 vertical wells
•454 wells cored

                                                            Phase 2 Area

                                                                Phase 2

                                       Phase 1

                                                                            Wabiskaw / McMurray Cores

                           CVE Christina Lake

                          Appendix 2 - Environmental Advantages
                                        According to Environment Canada, Canada contributed only 2% of global energy-related GHG
                                        emissions and oil sands contributed only 5% of this amount in 2008
                                                CAPP expects oil sands to contribute 8% by 2015 with increased production
On a “Wells to                          A full life cycle approach compares total emissions from various oil sources – “Wells to Wheels”
Wheels” basis,                                  Majority of emissions are from combustion of gasoline in motor vehicles – “Tank to
SAGD production                                 Wheels”
with cogen can                                  GHG emissions from oil sands may be higher than from conventional oil on a “Wells to
generate lower                                  Tank” basis
emissions than                                           When cogen is incorporated, SAGD may generate lower emissions than other
most other                                               sources of oil
sources of oil                                                 Carbon Dioxide (CO2) From Wells to Wheels                                                                Canada’s GHG Emissions by Sector
                                                                                                                                                                    Other Industries                   Transportation
                                       120                                                                                                      114                      23%                               22%
                                                                                                  104        105          106        108
                                                              98      102      102       102
                                       100    88-98                                                                                                        In-Situ Bitumen
                  g CO2e/MJ gasoline


                                       60                                                                                                                  Oil Sands Mining,
                                                                                                                                                            Extraction and
                                       40                                                                                                                      Upgrading                                      Heat & Electricity
                                                                                                                                                                  3%                                                16%
                                                                                                                                                                Conventional Oil &
                                                                                                                                                                  Gas (Excl. Oil
                                        0                                                                                                                                                            Residential
                                              SAGD -          Saudi   Iraq   Venezuala   Mexico   US Gulf   SAGD -        Nigeria   Oil Sands California            Sands)             Agriculture
                                                                                                                    (1)                                                                                 7%
                                             Dilbit (w ith                                         Coast     Dilbit                  Mining -  Thermal                17%                10%
                                                cogen                                                                               Upgraded
                                                credit)                                                                              Bitumen

                                                        GHG Emissions from Tank to Wheels              GHG Emissions from Wells to Tank

                         Source: Jacobs Consultancy “Life Cycle Assessment Comparison of North American and Imported Crudes” (June 2009).
                         (1) Assumes an SOR of 3.0. Jacobs estimates cogen to generate CO2 benefit of between 7 to 17 g/MJ                                                                                                18

To top