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.
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.
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).
As of January 1, 2025, the Property had a deemed asset value, as assigned by the British Columbia Energy Regulator, 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.
Summary information relating to this divestiture is attached to this correspondence. A package of more detailed confidential information will be sent to any party executing a Confidentiality Agreement (copy attached).
Cash offers relating to this process will be accepted until 12:00 pm on Thursday, June 19, 2025.
For further information please feel free to contact: Ben Rye, Sydney Birkett, or Tom Pavic at 403.266.6133.