Oil sands' long-lived reserves Stable production profile with negligible finding costs No meaningful production yet; execution risk to bring production onstream Vulnerability to heavy oil price differentials once production comes onstream In Standard&Poor's Ratings Services' opinion, the ratings on Calgary, Alta.-based MEG Energy Corp. reflect the company's lack of meaningful internal cash flow generation until Phase II of its Christina Lake project begins producing; execution risk of bringing its projects online; 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 these constraints, in our view. MEG holds a 100%
