MEG Energy Corp. files supplemented PREP prospectus and announces pricing of
initial public offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, July 29 /CNW/ - MEG Energy Corp. (MEG) has filed a supplemented PREP prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with its initial public offering of 20,000,000 common shares at a price of $35 per share. The offering will generate total gross proceeds of $700 million and net proceeds of approximately $660 million.

The closing of the offering is scheduled to occur on August 6, 2010, and is subject to the satisfaction of customary closing conditions.

The underwriters have also been granted an over-allotment option to purchase up to an additional 3,000,000 common shares from certain selling shareholders and from MEG. If the over-allotment option is exercised and satisfied in full by the transfer of common shares from selling shareholders, MEG will not receive any proceeds from the sale of these additional shares.

MEG has received conditional approval for the listing of its common shares on the Toronto Stock Exchange (TSX) under the symbol "MEG". Listing is subject to MEG fulfilling all of the listing requirements of the TSX on or before October 12, 2010, including distribution of the common shares to a minimum number of public shareholders. MEG has been advised by the TSX that "if, as and when issued" trading of MEG's shares will commence when the TSX opens at 9:30 a.m. Eastern Time on July 29, 2010.

The underwriting syndicate is led by Credit Suisse Securities (Canada), Inc., BMO Nesbitt Burns Inc., Barclays Capital Canada Inc. and Morgan Stanley Canada Limited, and is co-managed by TD Securities Inc., Goldman Sachs Canada Inc., Scotia Capital Inc., FirstEnergy Capital Corp. and Peters & Co. Limited.

A copy of the supplemented PREP prospectus has been filed on SEDAR and is available for review under MEG's profile at www.sedar.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States, in any province or territory of Canada or in any other jurisdiction. The securities to be offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States absent registration or absent an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or a sale would be unlawful.

About MEG

MEG Energy Corp. is an oil sands company 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.

Forward-Looking Statements

Certain statements made herein contain forward-looking information, including statements concerning the closing date of the offering and the exercise of the over-allotment option. Although MEG believes these statements to be reasonable, the assumptions upon which they are based may prove to be incorrect. Furthermore, the forward-looking statements contained in this press release are made as at the date of this press release and MEG does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

SOURCE MEG Energy Corp.

For further information: For further information: Dale J. Hohm, CA, Chief Financial Officer, MEG Energy Corp., (403) 770-5337, dale.hohm@megenergy.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890