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Press release from CNW Group

MEG Energy announces closing of $400 million public bought deal common share financing and concurrent $400 million private placement common share financing

Friday, December 28, 2012

MEG Energy announces closing of $400 million public bought deal common share financing and concurrent $400 million private placement common share financing10:03 EST Friday, December 28, 2012/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES/CALGARY, Dec. 28, 2012 /CNW/ - MEG Energy Corp. ("MEG") announced today that it has closed its recently announced bought deal financing (the "Public Offering") and concurrent private placement (the "Private Placement") of common shares. A total of 12,125,000 common shares have been issued pursuant to the Public Offering and 12,121,212 common shares have been issued pursuant to the Private Placement to Caisse de dépôt et placement du Québec, at a price of $33.00 per share, for aggregate gross proceeds of approximately $800 million.  The associated over-allotment option granted to the underwriters in connection with the Public Offering can be exercised at any time until and including 30 days from today's closing.The Public Offering was issued through a syndicate of underwriters co-led by BMO Capital Markets, Credit Suisse Securities (Canada), Inc., Barclays Capital Canada Inc. and RBC Capital Markets and included CIBC World Markets, HSBC Securities (Canada) Inc. and Morgan Stanley Canada Limited. BMO Capital Markets and Credit Suisse Securities (Canada) Inc. acted as joint agents to MEG on the Private Placement.The net proceeds of the Public Offering and the Private Placement, together with cash on hand and MEG's projected 2013 cash flow, are expected to fully fund MEG's 2013 capital budget, which was announced on December 10, 2012 and is available on MEG's website at www.megenergy.com or on www.sedar.com.The common shares subject to the Public Offering and the Private Placement have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent such registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.This news release contains forward-looking information, including but not limited to the use of proceeds from the Public Offering and Private Placement, projected 2013 cash flow and the ability to fully fund MEG's 2013 capital budget. Such forward-looking information is based on certain assumptions and analysis made by MEG in light of its experience and perception of current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements will conform to MEG's expectations and predictions is subject to market conditions and a number of known and unknown risks and uncertainties which could cause actual results to differ materially from MEG's expectations. Other factors which could materially affect such forward-looking information are described in the risk factors detailed in the continuous disclosure documents filed by MEG on SEDAR at www.sedar.com.MEG is focused on sustainable in situ oil sands development and production in the southern Athabasca 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."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."SOURCE: MEG Energy Corp.For further information: Investors Helen Kelly Director, Investor Relations 403-767-6206 helen.kelly@megenergy.com Media Brad Bellows Director, External Communications 403-212-8705 brad.bellows@megenergy.com