Glossary of Terms & Abbreviations

The terms referenced in this glossary reflect their meaning as used by MEG Energy and the in situ thermal oil industry.

Term/Abbreviations Definition

AER Alberta Energy Regulator.

API American Petroleum Institute.

API gravity Expressed in degrees, American Petroleum Institute gravity is a measure of the relative density of a petroleum liquid. MEG’s blended product, Access Western Blend, has an API gravity of approximately 22 degrees.

AWB Access Western Blend, or AWB, is the blend of bitumen and diluent MEG ships from its producing areas to the Edmonton-area refining and transportation hub.

bbls Barrels of petroleum product. Also often expressed as bpd for barrels per day.

Bitumen means a naturally occurring viscous mixture consisting mainly of pentanes and heavier hydrocarbons. Its viscosity is greater than 10,000 milliPascal seconds (centipoise) measured at original temperature in the reservoir and atmospheric pressure, on a gas-free basis. Crude bitumen may contain sulphur and other non-hydrocarbon compounds.

Bitumen Intensity greenhouse gas emissions per barrel of bitumen produced (reported in kg CO2e/bbl).

Board or Board of Directors means the board of directors of the Corporation.

Christina Lake Project, Christina Lake Regional Project, CLRP means MEG’s in situ thermal energy project located in the Province of Alberta as described in greater detail under the heading “Christina Lake Project.”

CDP Carbon Disclosure Project.

Cogeneration A process that uses heat generated from clean burning natural gas to produce both steam and electricity. MEG uses the steam and a portion of the electricity generated in its operations and sells the excess power as a lower-carbon energy source to the Alberta grid.

Core hole A cylindrical sample drilled from subsurface areas to analyze the characteristics of a resource base.

Dilbit A blend of diluent and bitumen.

Diluent means lighter viscosity petroleum products that are used to dilute bitumen for transportation in pipelines.

Diverse Person includes, but is not limited to, women, racialized people, Indigenous people, individuals who identify as LGBTQ2S+, and people with disabilities.

Downstream The segment of the petroleum industry involved in crude oil refining and marketing of refined products.

Downstream The segment of the petroleum industry involved in crude oil refining and marketing of refined products.

eMSAGP means the Corporation’s proprietary reservoir technology of enhanced Modified Steam and Gas Push, which involves the injection of non-condensable gas into the SAGD reservoir.

eMVAPEX means the Corporation’s proprietary recovery process known as enhanced modified vapour extraction which involves the injection of solvent into the SAGD reservoir.

ESG Environmental, Social, and Governance.

ERM Enterprise Risk Management.

Fresh Water any surface water (e.g., lakes, rivers, streams and wetlands) or shallow groundwater from aquifers less than 150m deep. This is consistent with the definition of high-quality non saline water (fresh water) used by the Alberta Energy Regulator in Directive 81.

GHG means greenhouse gas.

Groundwater Water beneath earth’s surface and is present in pore spaces or fractures.

In situ means “in place” and, when referring to oil sands, means a process for recovering bitumen from oil sands by means other than surface mining, such as SAGD.

LTIF Lost Time Injury Frequency.

Management means the executive officers of the Corporation (as a noun)(as per AIF).

McMurray Formation means a succession of sands and shale deposited in a fluvial estuarine environment that developed into a major valley that was cut into Devonian-aged limestone within the Cretaceous-aged Mannville Group.

Midstream The segment of the petroleum industry involved in transportation, blending and storage of crude oil.

MW means a unit of electrical power to measure the generating capability of a generating station, 1 million Watts equal 1 MW.

NO2 Nitrogen Dioxide. NOx Nitrogen Oxide. NOx is produced from the reaction of nitrogen and oxygen gases in the air during combustion.

Non-Saline Water Water having total dissolved solids content of 4,000 mg/L or less.

Oil Sands Deposits containing a mixture of bitumen, sand and water.

Phase 2B means the third phase of the Corporation’s Christina Lake Project which commenced production in 2013 with an initial bitumen production design capacity of approximately 35,000 bbls/d. 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.

Produced Gas Gas that is produced from the reservoir through the bitumen production process.

Produced Water Recycle Will need to differentiate between this and Recycled water either here or in the footnotes.

PSE Process Safety Events.

PSM Process Safety Management.

Ramp-up The period after physical completion of construction of a project during which steam injection begins and bitumen production begins to increase toward design capacity.

Reclamation The return of disturbed surface land forms and vegetation to a state similar to that before industrial activity took place. reserves are estimated remaining quantities of oil and natural gas and related substances anticipated tobe recoverable from known accumulations, as of a given date, based on: (i) analysis of drilling, geological, geophysical and engineering data; (ii) the use of established technology; and (iii) specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates.

Recycled water water that is reused within the facility for more than one purpose. See produced water recycle.

Reservoir means a subsurface body of rock having sufficient porosity and permeability to store and transmit fluids.

RIF Recordable Injury Frequency.

SAGD means steam assisted gravity drainage, an in situ process used to recover bitumen from oil sands.

Saline Water The Alberta Water Act (Ministerial) Regulation defines saline groundwater as water with total dissolved solids (TDS) content exceeding 4,000 mg/L. Also referred to as brackish water.

Seismic data Interpretive data that allows a view of subsurface strata beneath a prospective area. May be presented in two-dimensional or the more detailed and accurate three-dimensional forms.

SIF Serious Incident Frequency.

SOR Steam to Oil Ratio.

Steam to Oil Ratio The ratio of steam required to produce bitumen in equivalent units.

Surface Water All water on the surface of the ground, including water in lakes, rivers, streams, wetlands and runoff collection ponds, natural or man-made. Note: surface water can be saline (TDS > 4,000 mg/L).

Sweet Natural Gas Natural gas (primarily methane) that contains very little or no hydrogen sulphide.

TRIF Total Recordable Incident Rate.

UNDRIP United Nations Declaration on the Rights of Indigenous Peoples.

Upstream The segment of the petroleum industry involved in exploration, development and production of petroleum resources.

Abbreviations

$ dollars (Canadian)

bbl Barrel

bbls Barrels

bbls/d barrels per day

boe barrels of oil equivalent (on the basis of one being equal to one barrel of oil or six Mcf of natural gas)

CH4 methane

CO2e carbon dioxide equivalents

M$ thousand dollars (Canadian)

Mbbls thousand barrels

Mbbls/d thousand barrels per day

Mcf thousand cubic feet

MM$ million dollars (Canadian)

MMbbls million barrels

MMbbls/d million barrels per day

MWh mega-watt hour

NOx nitrogen oxides

PM particulate matter

SO2 sulphur dioxide

Tcf trillion cubic feet

VOC volatile organic compound