/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE
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
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:
Director, Investor Relations
Director, External Communications