The oil sands' long-lived reserves Stable production profile with negligible finding costs No production yet; high execution risk and possibilities of cost overruns Vulnerable to heavy oil price differentials once production comes on-stream The 'B+' long-term corporate credit rating on Calgary, Alta.-based MEG Energy Corp. reflects the company's lack of material internal cash flow generation, as it is in the construction phase of its Christina Lake oil sands project; its high leverage; the risk of cost increases on construction of its project; and its exposure to heavy oil differentials once production begins. The above-average reserve life index (RLI) of MEG's oil sands leases, and the expected stable production profile with negligible finding costs associated with oil sands extraction somewhat mitigate
