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Current Offerings / Pavilion Energy Corp.
Pavilion Energy Corp.
Property DivestitureBid Deadline: June 19, 2025
12:00 PM
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OVERVIEW
Pavilion Energy Corp. (“Pavilion”), together with its affiliate Rhodes Petroleum Corporation, (collectively the “Company”) has engaged Sayer Energy Advisors to assist the Company with the sale of its oil and natural gas interests located in the Stoddart and Wonowon areas of northeastern British Columbia (“North East BC” or the “Property”).
Current production net to Pavilion from North East BC is approximately 340 boe/d, consisting of approximately 1.4 MMcf/d of natural gas and 113 bbl/d of oil and natural gas liquids. Average daily production for the year ended December 31, 2024 was approximately 265 boe/d, consisting of 890 Mcf/d of natural gas and 116 bbl/d of oil and natural gas liquids.
Pavilion’s production during 2024 was adversely impacted for several reasons, including natural gas wells being shut-in due to low commodity pricing at Station 2 for the majority of the year, operational impediments due to pipeline freezing during the winter of 2024 and oil wells being shut-in due to flare permit renewals, production tank venting improvements and other regulatory requirements.
The Company plans to reinitiate natural gas production at all of its natural gas wells commencing in July 2025, in anticipation of improved pricing at Station 2, at a time when LNG production is scheduled to commence at Kitimat, BC. The Company anticipates natural gas production rates, net to Pavilion, of approximately 2.4 MMcf/d of natural gas. In addition, with the resumption of oil production from the Pavilion Blueberry D-083-L/094-A-12 well, should result in average daily production rates of approximately 555 boe/d (2.4 MMcf/d of natural gas and 163 bbl/d of oil and natural gas liquids).
Operating income net to Pavilion from North East BC for the year ended December 31, 2024 was approximately $1.2 million.
As of January 1, 2025, the Property had a deemed asset value, as assigned by the British Columbia Energy Regulator (“BCER”), of $10.0 million, and estimated total deemed liability of approximately of $7.4 million, consisting of $4.6 million for wells, $2.1 million for facilities and $0.7 million for pipelines.
Current production net to Pavilion from North East BC is approximately 340 boe/d, consisting of approximately 1.4 MMcf/d of natural gas and 113 bbl/d of oil and natural gas liquids. Average daily production for the year ended December 31, 2024 was approximately 265 boe/d, consisting of 890 Mcf/d of natural gas and 116 bbl/d of oil and natural gas liquids.
Pavilion’s production during 2024 was adversely impacted for several reasons, including natural gas wells being shut-in due to low commodity pricing at Station 2 for the majority of the year, operational impediments due to pipeline freezing during the winter of 2024 and oil wells being shut-in due to flare permit renewals, production tank venting improvements and other regulatory requirements.
The Company plans to reinitiate natural gas production at all of its natural gas wells commencing in July 2025, in anticipation of improved pricing at Station 2, at a time when LNG production is scheduled to commence at Kitimat, BC. The Company anticipates natural gas production rates, net to Pavilion, of approximately 2.4 MMcf/d of natural gas. In addition, with the resumption of oil production from the Pavilion Blueberry D-083-L/094-A-12 well, should result in average daily production rates of approximately 555 boe/d (2.4 MMcf/d of natural gas and 163 bbl/d of oil and natural gas liquids).
Operating income net to Pavilion from North East BC for the year ended December 31, 2024 was approximately $1.2 million.
As of January 1, 2025, the Property had a deemed asset value, as assigned by the British Columbia Energy Regulator (“BCER”), of $10.0 million, and estimated total deemed liability of approximately of $7.4 million, consisting of $4.6 million for wells, $2.1 million for facilities and $0.7 million for pipelines.
Overview Map Showing the Location of the Divestiture Property
NORTH EAST BC
Current production net to Pavilion from North East BC is approximately 340 boe/d, consisting of 1.4 MMcf/d of natural gas and 113 bbl/d of oil and natural gas liquids. Average daily production for the year ended December 31, 2024 was approximately 265 boe/d, consisting of 890 Mcf/d of natural gas and 116 bbl/d of oil and natural gas liquids.
Pavilion’s production during 2024 was adversely impacted for several reasons, including natural gas wells being shut-in due to low commodity pricing at Station 2 for the majority of the year, operational impediments due to pipeline freezing during the winter of 2024 and oil wells being shut-in due to flare permit renewals, production tank venting improvements and other regulatory requirements.
Production during the first four months of 2025 continued to be adversely impacted by low natural gas pricing at Station 2 and the Pavilion Blueberry D-083-L/094-A-12 well continuing to be shut-in pending renewal of facility flaring permit.
The Company plans to reinitiate natural gas production at all of its natural gas wells commencing in July 2025, in anticipation of improved pricing at Station 2, at a time when LNG production is scheduled to commence at Kitimat, BC. The Company anticipates natural gas production rates, net to Pavilion, of approximately 2.4 MMcf/d of natural gas. In addition, with the resumption of oil production from the Pavilion Blueberry D-083-L/094-A-12 well, should result in average daily production rates of approximately 555 boe/d (2.4 MMcf/d of natural gas and 163 bbl/d of oil and natural gas liquids).
Operating income net to Pavilion from North East BC for the year ended December 31, 2024 was approximately $1.2 million.
Pavilion’s production during 2024 was adversely impacted for several reasons, including natural gas wells being shut-in due to low commodity pricing at Station 2 for the majority of the year, operational impediments due to pipeline freezing during the winter of 2024 and oil wells being shut-in due to flare permit renewals, production tank venting improvements and other regulatory requirements.
Production during the first four months of 2025 continued to be adversely impacted by low natural gas pricing at Station 2 and the Pavilion Blueberry D-083-L/094-A-12 well continuing to be shut-in pending renewal of facility flaring permit.
The Company plans to reinitiate natural gas production at all of its natural gas wells commencing in July 2025, in anticipation of improved pricing at Station 2, at a time when LNG production is scheduled to commence at Kitimat, BC. The Company anticipates natural gas production rates, net to Pavilion, of approximately 2.4 MMcf/d of natural gas. In addition, with the resumption of oil production from the Pavilion Blueberry D-083-L/094-A-12 well, should result in average daily production rates of approximately 555 boe/d (2.4 MMcf/d of natural gas and 163 bbl/d of oil and natural gas liquids).
Operating income net to Pavilion from North East BC for the year ended December 31, 2024 was approximately $1.2 million.
North East BC Facilities
In North East BC, Pavilion is the licensee and owns interests in the following facilities:
The Company’s facilities and pipelines are located in an area which is being developed for production from the Montney Formation. The Company’s facilities and pipelines could be utilized or expanded to accommodate production from the Montney in the area.
Further details on the Company’s facilities will be made available to parties that execute a confidentiality agreement.
North East BC Marketing
Pavilion has a monthly crude oil purchase contract in place with Tidal Energy Marketing Inc. Pavilion’s oil production from North East BC is currently trucked from all batteries directly to R360 in Gordondale.
Natural gas liquids are sold to AltaGas Inc. at the McMahon natural gas plant. Natural gas is sold to BP Gas Marketing Limited at McMahon.
North East BC Deemed Asset and Liability Summary
As of January 1, 2025, the Property had a deemed asset value, as assigned by the BCER, of $10.0 million, and estimated total deemed liability of approximately of $7.4 million, consisting of $4.6 million for wells, $2.1 million for facilities and $0.7 million for pipelines.
North East BC Well List
Click here to download the complete well list in Excel
Further details on the Company’s facilities will be made available to parties that execute a confidentiality agreement.
North East BC Marketing
Pavilion has a monthly crude oil purchase contract in place with Tidal Energy Marketing Inc. Pavilion’s oil production from North East BC is currently trucked from all batteries directly to R360 in Gordondale.
Natural gas liquids are sold to AltaGas Inc. at the McMahon natural gas plant. Natural gas is sold to BP Gas Marketing Limited at McMahon.
North East BC Deemed Asset and Liability Summary
As of January 1, 2025, the Property had a deemed asset value, as assigned by the BCER, of $10.0 million, and estimated total deemed liability of approximately of $7.4 million, consisting of $4.6 million for wells, $2.1 million for facilities and $0.7 million for pipelines.
North East BC Reserves
Pavilion has a third-party reserves evaluation for the Property (the “Reserve Report”). The Reserve Report does not conform to NI 51-101 requirements as the third party is not qualified under NI 51-101 guidelines. The Reserve Report is effective December 31, 2024 using Sproule ERCE’s forecast pricing at March 31, 2025.
The Reserve Report estimates that, as at December 31, 2024, the Property contains remaining proved plus probable reserves of 787,000 barrels of oil and natural gas liquids and 9.1 Bcf of natural gas (2.3 million boe), with an estimated net present value of $20.2 million using forecast pricing at a 10% discount.
Pavilion has a third-party reserves evaluation for the Property (the “Reserve Report”). The Reserve Report does not conform to NI 51-101 requirements as the third party is not qualified under NI 51-101 guidelines. The Reserve Report is effective December 31, 2024 using Sproule ERCE’s forecast pricing at March 31, 2025.
The Reserve Report estimates that, as at December 31, 2024, the Property contains remaining proved plus probable reserves of 787,000 barrels of oil and natural gas liquids and 9.1 Bcf of natural gas (2.3 million boe), with an estimated net present value of $20.2 million using forecast pricing at a 10% discount.
North East BC Well List
Click here to download the complete well list in Excel
STODDART
Township 85-86, Range 18-20 W6
At Stoddart, Pavilion holds primarily a 100% operated working interest in 27.25 sections of Crown land. Production at Stoddart is both oil and natural gas predominantly from the Permian-aged Belloy Formation.
At Stoddart, Pavilion holds primarily a 100% operated working interest in 27.25 sections of Crown land. Production at Stoddart is both oil and natural gas predominantly from the Permian-aged Belloy Formation.
Stoddart, BC
Gross Production Group Plot of Pavilion's Oil & Natural Gas Wells
Current production from the Property is from Pavilion’s operated interests.
Stoddart Upside
The main producing formation at Stoddart is the Permian-aged Belloy Formation. The Belloy Formation is comprised of three members, a lower carbonate member, a middle sand member and an upper carbonate member.
The Company owns a 75% working interest in the Belloy oil well Pavilion Et Al Stoddart 00/04-01-086-20W6/00. This well has been shut-in since 2016, when the solution natural gas was no longer capable of being conserved. The Company has a permit and the necessary right of way to construct a new pipeline connection to tie this oil well into the oil battery located at 14-26-085-20W6. The Company plans to carry out this construction project during the second half of 2025. It is anticipated that this oil well will produce volumes consistent with when it was last on production of 18 bbl/d of oil and 200 Mcf/d of natural gas (gross).
The Company owns a 50% working interest in the Bluesky natural gas well Pavilion Et Al Montney 00/05-32-086-19W6/00. This well would benefit from a wellbore clean out, as it has been discovered that there is approximately 5 metres of sand above the perforations. This cleanout is planned to take place in the second half of 2025.
The Company owns a 66.67% working interest in the Pavilion Et Al Stoddart 00/11-18-086-19W6/00 Belloy natural gas well. The Company has determined that this well would benefit from the installation of a plunger lift, since an earlier attempt was made to expand the producing interval. This expenditure is planned to take place in the second half of 2025.
The Company owns a 100% working interest in the oil well Pavilion Et Al Stoddart 02/06-19-086-19W6/00. The well has been a consistent oil producer from the Cecil sand. Very little water is produced in conjunction with the oil. The Company was successful in improving the production rate utilizing an acid stimulation in 2018. Pavilion believes that a similar acid stimulation would increase the current production rate from approximately 15 bbl/d to approximately 30 bbl/d of oil.
The Company owns a 100% working interest in the Pavilion W Stoddart 00/04-35-085-20W6/00 well, which has watered out in the Belloy Formation and currently produces only minimal volumes of natural gas. The 04-35-085-20W6 logs and offsetting producing wells indicate potential upside in a Doig recompletion. The well logs also indicate a prospective recompletion in the Spirit River Formation.
Further details of the upside identified by Pavilion will be available in the virtual data room for parties that execute a confidentiality agreement.
Stoddart Upside
The main producing formation at Stoddart is the Permian-aged Belloy Formation. The Belloy Formation is comprised of three members, a lower carbonate member, a middle sand member and an upper carbonate member.
The Company owns a 75% working interest in the Belloy oil well Pavilion Et Al Stoddart 00/04-01-086-20W6/00. This well has been shut-in since 2016, when the solution natural gas was no longer capable of being conserved. The Company has a permit and the necessary right of way to construct a new pipeline connection to tie this oil well into the oil battery located at 14-26-085-20W6. The Company plans to carry out this construction project during the second half of 2025. It is anticipated that this oil well will produce volumes consistent with when it was last on production of 18 bbl/d of oil and 200 Mcf/d of natural gas (gross).
The Company owns a 50% working interest in the Bluesky natural gas well Pavilion Et Al Montney 00/05-32-086-19W6/00. This well would benefit from a wellbore clean out, as it has been discovered that there is approximately 5 metres of sand above the perforations. This cleanout is planned to take place in the second half of 2025.
The Company owns a 66.67% working interest in the Pavilion Et Al Stoddart 00/11-18-086-19W6/00 Belloy natural gas well. The Company has determined that this well would benefit from the installation of a plunger lift, since an earlier attempt was made to expand the producing interval. This expenditure is planned to take place in the second half of 2025.
The Company owns a 100% working interest in the oil well Pavilion Et Al Stoddart 02/06-19-086-19W6/00. The well has been a consistent oil producer from the Cecil sand. Very little water is produced in conjunction with the oil. The Company was successful in improving the production rate utilizing an acid stimulation in 2018. Pavilion believes that a similar acid stimulation would increase the current production rate from approximately 15 bbl/d to approximately 30 bbl/d of oil.
The Company owns a 100% working interest in the Pavilion W Stoddart 00/04-35-085-20W6/00 well, which has watered out in the Belloy Formation and currently produces only minimal volumes of natural gas. The 04-35-085-20W6 logs and offsetting producing wells indicate potential upside in a Doig recompletion. The well logs also indicate a prospective recompletion in the Spirit River Formation.
Further details of the upside identified by Pavilion will be available in the virtual data room for parties that execute a confidentiality agreement.
WONOWON
NTS 094-A-12
In addition to its interests at Stoddart, the Company also owns a 100% working interest in one Upper Debolt oil well, Pavilion Blueberry D-083-L/094-A-12, near Wonowon, B.C.
This well has been shut-in since July of 2024 pending approval of a site-specific environmental management plan and the renewal of the facility flaring permit.
In addition to its interests at Stoddart, the Company also owns a 100% working interest in one Upper Debolt oil well, Pavilion Blueberry D-083-L/094-A-12, near Wonowon, B.C.
This well has been shut-in since July of 2024 pending approval of a site-specific environmental management plan and the renewal of the facility flaring permit.
Wonowon Upside
The Pavilion Blueberry D-083-L/094-A-12 well is located within an Area of Special Interest for the Blueberry First Nation, and has also required the submission of a site-specific environmental management plan. The environmental management plan has been submitted and the Company believes production will be recommenced from the Pavilion Blueberry D-083-L/094-A-12, upon the reissuance of a flaring permit, which is expected imminently.
Historical production from the Pavilion Blueberry D-083-L/094-A-12 well was under a “production allowable” of approximately 50 bbl/d of oil based upon permitted solution gas flaring.
As shown on the following production plot, the Pavilion Blueberry D-083-L/094-A-12 well has had a historically low decline.
The Pavilion Blueberry D-083-L/094-A-12 well is located within an Area of Special Interest for the Blueberry First Nation, and has also required the submission of a site-specific environmental management plan. The environmental management plan has been submitted and the Company believes production will be recommenced from the Pavilion Blueberry D-083-L/094-A-12, upon the reissuance of a flaring permit, which is expected imminently.
Historical production from the Pavilion Blueberry D-083-L/094-A-12 well was under a “production allowable” of approximately 50 bbl/d of oil based upon permitted solution gas flaring.
As shown on the following production plot, the Pavilion Blueberry D-083-L/094-A-12 well has had a historically low decline.
PROCESS & TIMELINE
Sayer Energy Advisors is accepting cash offers relating to acquire the Property until 12:00 pm on Thursday June 19, 2025. Preference will be given to offers to acquire the Property but the Company will also entertain offers for individual wells.
Sayer Energy Advisors does not conduct a "second-round" bidding process; the intention is to attempt to conclude a
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
transaction with the party submitting the most acceptable proposal at the conclusion of the process.
Sayer Energy Advisors is accepting cash offers from interested parties until
noon on Thursday June 19, 2025.
NOTE REGARDING A SAYER PROCESS
On each and every offering brochure generated by Sayer, you will note the sentence “Sayer Energy Advisors does not conduct a “second-round” bidding process; the intention is to attempt to conclude a sale of the Property with the party submitting the most acceptable proposal at the conclusion of the process.” What this means is that Sayer will not go back to multiple parties at the same time after bids are received, asking them all for a second bid. We determine which party submitted the most acceptable proposal and then we attempt to negotiate acceptable terms with that party in a “one-off” situation.
If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
In the extremely rare circumstance where two or more parties submit virtually identical proposals, we will contact all parties, we will advise them of this situation and we will ask them to submit a revised proposal. Once these are received, we will work with the party which has submitted the most acceptable proposal.If the process involves a cash sale of a property or company and the party which submitted the most acceptable proposal has met our client’s threshold value, that offer will be accepted. If this proposal does not meet our client’s threshold value, then we will advise that party that the offer is not quite what our client was expecting, and we will ask them to increase the offer. If that offer is not acceptable to our client, we will then move down to the party which submitted the next most acceptable proposal and we will then work with that party to attempt to meet our client’s threshold value.
CONFIDENTIALITY AGREEMENT
Parties wishing to receive access to the confidential information with detailed information relating to this opportunity should execute the Confidentiality Agreement and return one copy to Sayer Energy Advisors by courier, email (tpavic@sayeradvisors.com) or fax (403.266.4467).
Included in the confidential information is the following: summary land information, the Reserve Report, deemed asset and liability information, most recent net operations summary, and other relevant technical information.
Download Confidentiality Agreement
To receive further information on the Property please contact Tom Pavic, Ben Rye or Sydney Birkett at 403.266.6133.