Mid-April, Paramount applied for a new gas processing plant on their Sinclair property; an asset they disclosed in late-2025. This ~105,000 acre property is highly prospective for extremely deliverable lean gas. Recently, Birchcliff tested a well to the east at 17MMcf/d of raw gas. Internally, HTM is expecting EURs between 15-25Bcf, and IP30 rates between 15-25MMcf/d.

The filing also disclosed that they intend to start construction inJanuary of 2026, and finish construction in September of 2026. This 9-10 month turnaround is extremely fast compared to recent liquids-rich sour infrastructure in the Grande Prairie region; though in-line with Haynesville infrastructure in the US. The application reveals two phases, though Paramount stated that if they don't build the second phase, the land will be returned to the Crown. We estimate that each phase is between 4-500MMcf/d of raw gas processing capacity. Notably, there does not seem to be any meaningful liquids recovery facilities, implying the development is extremely lean (as expected). They do show amine facilities, which implies they are preparing for H2S (sour gas), though the amine facilities are notably undersized for a ~1Bcf/d plant, implying they don't expect the full property to be sour.

It's notable that Paramount is eschewing liquids recovery altogether, suggesting that Paramount plans to occupy the bottom of the dry gas cost curve in the WCSB. We view this as achievable, given the high deliverability of wells and the potentially very low infrastructure and operating costs. This is a very positive development; we see this as Paramount progressing one of the most economic gas assets in North America that has 15-20 years of inventory at 1Bcf/d of raw gas, surely something that will be desirable in the future.

Below we show a map clip of the greater South Montney landscape. Zoom in on Paramount's asset to see a rendering of the gas plant. We also show the rendering of this plant next to Tourmaline's Sundown facility (150MMcf/d), and Shell's Groundbirch facility (~325MMcf/d). We'd note that Paramount's Sinclair plant is most similar to Tourmaline's facility, as there aren't refridge units for liquids recovery, they simply plan to dehydrate and condition the gas — i.e. they are going to extremely low cost gas processing with no focus on liquids recovery (not that there's much to recover in the first place). This is in direct contract to Tourmaline Groundbirch, where Tourmaline intends to build a deep cut facility; which have higher associated capital, and operating costs (which in theory should be offset by the liquids recoveries).