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The materials and information contained in this website are provided for information purposes only and are not intended to constitute an offering of securities in any jurisdiction. Information disclosed under the corporate and securities laws of those Canadian jurisdictions applicable to MEG is not intended to be in any way qualified, amended, modified or supplemented by the information otherwise available in or through this website. Due to the technical and security risks inherent in the internet, and because the document you access may differ from the original depending on your browser software, the information set out in this website should not be used for the purpose of making investment decisions. Please visit the SEDAR website (www.sedar.com) to obtain filed copies of the documents you wish to rely upon or, if you require printed copies, please contact MEG's Investor Relations department.
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MEG is not liable for any errors or omissions in the information contained in this website. All information contained in this website is provided on an "as-is", "as-available", and "with all faults" basis without any representations, warranties or endorsements whatsoever. MEG may revise, supplement or delete information, materials and/or the resources contained in this website and reserves the right to make such changes without prior notification to past, current or prospective visitors.
No warranty of any kind, implied, express or statutory, including without limitation any warranty of merchantability and non-infringement of intellectual property rights, third party rights, title, fitness for any particular purpose or freedom from computer viruses or other contaminating or destructive properties, is given in conjunction with this website or the materials or information contained herein. MEG does not represent or warrant that this website or the materials or information contained herein will meet your requirements or that their use will be uninterrupted or error free.
This website may provide links to third party websites. The inclusion of these links is for your convenience and does not imply that MEG monitors or endorses these websites. MEG does not accept any responsibility for such websites. MEG shall not be responsible or liable, directly or indirectly, for any damage or loss, caused or alleged to be caused by or in connection with the use of or the reliance upon any information, content, goods or services available in or through any third party websites or linked resources.
Electronic Communications with MEG
MEG is not liable for any damages related to communications to or from this website. You agree with respect to any information provided by you to us through this website or via e-mail that:
MEG has no obligation concerning such information;
- such information is non-confidential;
- subject to MEG's commitment to comply with applicable privacy laws, MEG may use, disclose, distribute or copy such information and may use any ideas, concepts or know-how contained in such information for any purpose; and
- such information is truthful and the disclosure of such information does not violate the legal rights of others.
Exclusion of Liability and Indemnity
Trademark and Copyright
The materials and information found in this website are the property of MEG and its licensors and may be protected by the intellectual property laws of Canada and other applicable jurisdictions; including laws relating to copyrights, trade-marks, trade-names, internet domain names and other similar rights. The materials and information found in this website may only be used and copied for your own, non-commercial, personal purposes, provided that such materials and information are not modified and that copyright and other intellectual property notices are not deleted. You may not create derivative works from or otherwise exploit these materials and information in any way. Unless you have entered into a separate agreement with MEG, any other use of these materials and information without MEG's written permission is prohibited.
As visitors access this website on a server in Alberta, Canada, the information contained in this website is deemed to be provided in Alberta and is subject to Alberta law and the laws of Canada applicable therein. If you access this website from outside of Canada, you do so at your own risk and are responsible for compliance with local, national or international laws including, without limitation, securities laws. You also agree that any claims or disputes whatsoever arising hereunder shall be submitted to the exclusive jurisdiction and venue of the courts of the Province of Alberta and acknowledge that you do so voluntarily.
Certain statements and graphs (collectively, "statements") posted to this website contain "forward-looking statements" or "forward looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information may include, but are not limited to, statements with respect to: reserve and resource potential; future exploration and development plans; estimates of proved reserves, probable reserves and contingent resources; future acquisition or disposition opportunities; future or anticipated cash flows; the availability of new technology and innovations to increase recoveries, to decrease costs or to comply with environmental and other regulations; the anticipated capital requirements, development plans, timing for completion, production capacities and performance of projects and future expansions at Christina Lake, at Surmont and at MEG's other properties; the ability for MEG to obtain and maintain necessary regulatory approvals; the future access to adequate water, natural gas, condensate, transportation facilities and bitumen blend and electricity markets; the timing and capital investments associated with the expansion and development of the Access Pipeline, the Stonefell Terminal and other midstream facilities; the economies of scale and upside associated with phased developments; projections of future steam-oil ratios, non-fuel and fuel operating costs, fuel efficiencies and recovery factors; and anticipated currency exchange rates and other economic and pricing assumptions.
You are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that circumstances, events or outcomes anticipated or implied by forward-looking statements will not occur, which may cause the actual performance and financial results in future periods to differ materially from the performance or results anticipated or implied by any such forward-looking statements. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this website include: volatility of and assumptions regarding bitumen blend, condensate, gas and electricity prices; fluctuations in currency and interest rates; product supply and demand; market competition; risks inherent in marketing operations (including credit risks); imprecision of reserves estimates and estimates of recoverable quantities of oil from resource plays and other resources not currently classified as proved reserves; potential disruption or unexpected technical difficulties in developing new products and production processes; potential for new products to fail to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying production or midstream facilities; the ability to replace and expand reserves; the ability to generate sufficient cash flow from operations to meet current and future obligations; the ability to access external sources of debt and equity capital; the timing and the costs of well and pipeline construction; the ability to secure adequate product transportation; the risk of curtailment or apportionment of transportation services; changes in royalty, tax, land use, environmental and other laws or regulations or the interpretations of such laws or regulations; changes in political and economic conditions; the risk of war, hostilities, civil insurrection, political instability and terrorist threats; risks associated with existing and potential future lawsuits and regulatory actions; and other risks and uncertainties described in MEG's latest Annual Information Form (the "AIF") and in the other filings made by MEG from time to time with securities regulatory authorities. Readers are cautioned that the foregoing list of important factors may not be exhaustive. Although MEG believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Assumptions relating to forward-looking statements generally include MEG's current expectations and projections made by MEG in light of, and generally consistent with, its historical experience and its perception of historical trends, as well as expectations regarding rates of advancement and innovation, generally consistent with and informed by its past experience, all of which are subject to the risk factors identified above. There can be no assurance that (i) MEG has correctly measured or identified all of the factors affecting MEG, its business or industry or the extent of their likely impact; (ii) the publicly available information with respect to these factors and risks on which MEG's analysis is based, in whole or in part, is complete or accurate; (iii) MEG's analysis is correct; or (iv) MEG's strategy, which is based in part on such analysis, will be successful.
The forward-looking statements contained in this website are made as of the date they were first made, and except as required by law, MEG does not undertake any obligation to update publicly or to revise any such forward-looking statements, whether as a result of new information, future events or otherwise. All such forward-looking statements are expressly qualified by this cautionary statement.
Additional information on the foregoing risks, assumptions and other factors that could affect MEG's operations or financial results are included in MEG's public disclosure documents on file with Canadian securities regulatory authorities. In particular, see "Risk Factors" and "Regulatory Matters" within MEG's AIF. MEG's public disclosure documents may be accessed through the SEDAR website (www.sedar.com) or by contacting MEG's investor relations department.
MEG engaged GLJ Petroleum Consultants ("GLJ") to prepare an independent assessment and evaluation of MEG's bitumen reserves and resources effective as of December 31, 2014 (the "GLJ Report"). Specifically, GLJ evaluated certain of MEG's 100% working interests in leases located at Christina Lake, Surmont and the Growth Properties, all of which are located in the province of Alberta, Canada. GLJ carried out its evaluations in accordance with standards established by the Canadian Securities Administrators in National Instrument 51-101. Those standards require that the reserves and contingent resources data be prepared in accordance with the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum society), as amended from time to time (the "COGE Handbook"). The aggregate reserve and resource estimates and valuations presented in this website are arithmetic sums of the reserve and resource estimates and valuations contained in the GLJ Report.
Any evaluations of future revenue are after the deduction of royalties, development costs production costs and well abandonment costs but before consideration of indirect costs, such as administrative, overhead and other miscellaneous expenses. Any estimated future net revenues do not necessarily represent the fair market value of MEG's reserves. There is no assurance that the forecast prices and cost assumptions contained in the GLJ Report will be realized and variances could be material. Other assumptions and qualifications relating to the project schedules, costs and other matters are included in the GLJ Report. The recovery and reserves estimates of MEG's leases are estimates only. The actual reserves on MEG's leases may be greater than those calculated. Where one property is discussed to the exclusion of others, the estimates of reserves and future net revenue for 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.
"Best Estimate" is a classification of estimated resources described in the COGE Handbook as being considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the Best Estimate. If probabilistic methods are used, there should be a 50% probability (P50) that the quantities actually recovered will equal or exceed the Best Estimate.
There are significant differences in the criteria associated with the classification of reserves and contingent resources. Contingent resources estimates involve additional risks, specifically the risk of not achieving commerciality and exploration risk not applicable to reserves estimates. No adjustments for these risks have been made in the groupings of reserves and recoverable resources. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Contingent resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. All contingent resources presented herein are classified in the Best Estimate category. It should not be assumed that the estimates of recovery, production and future net revenue presented herein represent the fair market value of MEG's contingent resources of bitumen. There is no assurance that the forecast prices and cost assumptions will be realized and variances could be material. The recovery and production estimates, if any, of MEG's contingent resources provided herein are only estimates and there is no guarantee that the estimated contingent resources will be recovered or produced. Actual contingent resources may be greater than or less than the estimates provided herein. The contingencies which currently prevent the classification of the contingent resources disclosed herein as reserves consist of: further reservoir studies, delineation drilling, facility design, preparation of firm development plans, regulatory applications, and MEG approvals. The additional facility design work, development plans, reservoir studies and delineation drilling are often completed in the course of preparing MEG's application for regulatory approvals. Once all regulatory and corporate approvals are received and any other contingencies are removed, the resources may then be classified as reserves. There is no certainty that it will be commercially viable for MEG to produce any portion of the contingent resources on any of its properties.
For additional important information concerning MEG's reserves and resources please refer to MEG's AIF and other public disclosure documents which can be accessed through the SEDAR website (www.sedar.com) or by contacting MEG's investor relations department.
Non-IFRS Financial References
This website may contain references to financial measures commonly used in the crude oil and natural gas industry, such as net bitumen revenue, operating earnings, cash flow from operations and cash operating netback. These financial measures are not defined by International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and therefore are referred to as non-IFRS measures. The non-IFRS measures used by MEG may not be comparable to similar measures presented by other companies. MEG uses these non-IFRS measures to help evaluate its performance. Management considers net bitumen revenue, operating earnings and cash operating netback important measures as they indicate profitability relative to current commodity prices. Management uses cash flow from operations to measure MEG's ability to generate funds to finance capital expenditures and repay debt. These non-IFRS measures should not be considered as an alternative to or more meaningful than net income or net cash provided by operating activities, as determined in accordance with IFRS, as an indication of MEG's performance.