MEG Energy announces launch of regulatory process for Surmont Project

Multi-stage project targets 120,000 barrels per day

CALGARY, ALBERTA (March 19, 2012) – MEG Energy Corp. (“MEG”) today announced its intention to begin formal stakeholder consultation in advance of a regulatory application to build, own and operate oil sands production facilities with a design capacity of approximately 120,000 barrels per day in the Surmont area of the Southern Athabasca oil sands region of Alberta.

“The development of our Surmont property is another important step in our long-term growth strategy,” said Bill McCaffrey, MEG President and Chief Executive Officer. “Building on our current production base nearby at Christina Lake, Surmont offers several advantages – we know the area geology well, we have established strong relationships with regional stakeholders, and it is relatively straightforward to link the project into existing pipeline and transportation infrastructure.”

Environmental and engineering studies are in progress in preparation for filing of the regulatory application. Consultation, which is an ongoing activity with MEG’s regional stakeholders, will be expanded to address project plans and details specific to the Surmont Project.

MEG anticipates submitting a regulatory application for the Surmont Project in mid-2012. The proposed project will use steam-assisted gravity drainage technology and include multi-well production pads, electricity and steam cogeneration, water and bitumen treatment, worker accommodations and other facilities similar to MEG’s current Christina Lake Project. The project area falls within portions of Townships 81-82, Range 5 W4M, 80 kilometres south of Fort McMurray. This area has been extensively explored and developed for natural gas projects, and more recently for oil sands resources. Other thermal recovery projects are already operating in this area.

MEG Energy Corp. is focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada. MEG is actively developing enhanced oil recovery projects that utilize SAGD extraction methods. MEG's common shares are listed on the Toronto Stock Exchange under the symbol "MEG."

Forward Looking Information
This news release contains statements that constitute forward-looking information including but not limited to the filing of a regulatory application in respect of the Surmont Project, the timing for filing of such a regulatory application, the potential design capacity and production associated with the Surmont Project and the pipelines, facilities and other infrastructure that may be constructed in connection with such project.  These statements involve known and unknown risks and uncertainties that may cause actual results or events to differ materially from those anticipated.  For more information regarding such statements and the risks associated with them, see "Risk Factors" and "Regulatory Matters" within MEG's annual information form dated February 24, 2011 and within MEG’s annual information form to be filed at the end of March 2012 along with MEG's other public disclosure documents. Copies of MEG’s annual information forms and MEG's other public disclosure documents are available through the SEDAR website (www.sedar.com) or by contacting MEG's investor relations department.