Mr. John Rogers reports

MEG ANNOUNCES CLOSING OF $518 MILLION SUBSCRIPTION RECEIPT OFFERING

MEG Energy Corp. has closed its previously announced public offering on a bought-deal basis of 66,815,000 subscription receipts, including the 8,715,000 subscription receipts issuable on exercise of the overallotment option granted by MEG to the underwriters in connection with the offering, at a price of $7.75 per subscription receipt, for aggregate gross proceeds from the offering of approximately $517.8-million. The overallotment option was exercised in full on Jan. 12, 2017.

Each subscription receipt will entitle the holder thereof to receive automatically one common share of MEG, upon the effectiveness of the previously announced credit facility and term loan refinancing and the closing of the previously announced second lien note refinancing, prior to or on March 15, 2017, without any further action on the part of the holder thereof and without payment of additional consideration. This conversion is expected to occur by mid-February, 2017.

The net proceeds from the offering will be used to partially finance MEG's 2017 $590-million capital program and for general corporate purposes.

The offering was completed in all of the provinces and territories of Canada by way of a prospectus supplement dated Jan. 13, 2017, to MEG's base-shelf prospectus dated Dec. 1, 2016, and to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A of the U.S. Securities Act of 1933, as amended.

The subscription receipts will commence trading on the Toronto Stock Exchange today under the symbol MEG.R.

About MEG Energy

MEG Energy is focused on sustainable in situ oil sands development and production in the southern Athabasca oil sands region of Alberta, Canada.

We seek Safe Harbor.