Forden Energy: ten bids, one signed deal, and a discharge sought from the rest

When PricewaterhouseCoopers Inc. took possession and control of Forden Energy Inc.'s property on February 2, 2026, the company's books and records as at July 31, 2019 were, in the receiver's words, "the most recent information available to the Receiver." Its notice to creditors sets out the assets at those 2019 book values — $555,210 in accounts receivable, $218,140 in prepaid expenses, $3,166,642 in property, plant and equipment — and one current figure, taken from a bank statement of January 7, 2026: $4,615 in cash. The address it gives for the business is a post-office box in Drayton Valley, per the Notice of Receiver (ss. 245(1) and 246(1)), Feb. 10, 2026, p. 1.

Forden holds licences to operate 192 wells, 174 pipeline segments and 24 facilities across Alberta; a related company, 2150865 Alberta Ltd., holds working interests for those assets. Forden acquired that asset base out of the insolvency proceedings of Sequoia Resources Corporation in 2019. "In the years thereafter," PwC's application to the court says, "Forden has been unable to reactivate the wells at sustained levels necessary to achieve commercial viability, and accumulated significant arrears," per the Application: Sale Approval, Limited Discharge, Final Discharge and Ancillary Relief, Sept. 28, 2026, paras. 5–6.

It began with the regulator, the application says. On August 12, 2025 the Alberta Energy Regulator issued a compliance order requiring Forden to post security of approximately $895,687. Forden was unable to provide it, and on August 17 filed a notice of intention to make a proposal under s. 50.4 of the Bankruptcy and Insolvency Act. The related company was also insolvent at the time, the application says, but did not file at the same time; shortly after Forden's first stay extension on September 11, the two companies determined it was appropriate for 2150865 Alberta to join Forden in a joint restructuring proceeding, and it filed its own notice on October 1. The court approved a sale and investment solicitation process, to be conducted with the assistance of the companies' sales advisor, Sayer Energy Advisors, and the companies obtained a stay extension to February 15, 2026 "in order to facilitate the completion of the SISP and the closing of the six prospective transactions generated therefrom." Then, "following consultation with the OWA" — the Orphan Well Association — the companies applied on February 2 for PwC's appointment as receiver, "with a view to pursuing the completion of the sale transactions from the SISP through the stability of a receivership framework," per the Application, Sept. 28, 2026, paras. 6–9.

Now PwC is asking the Court of King's Bench of Alberta to bring the receivership to a close. Its application, filed September 28 and returnable at 2:00 p.m. on September 29, 2026 before Justice C. D. Simard, seeks approval of a sale to Sarnia Resources Inc.; a limited discharge from the properties left without an executable offer; a final discharge once the sale closes and its remaining work is done; and payment of any funds remaining to the Orphan Well Association, as partial repayment of the borrowings the association advanced to the receiver. "Notwithstanding the significant efforts undertaken by the Receiver to market the Debtors' assets and properties during these proceedings," the application says, "… there will be no distribution to any of the Companies' pre-filing creditors," per the Application, Sept. 28, 2026, p. 1, paras. 1–2, 24–25 and Sch. C (proposed order), para. 11.

A receivership the companies asked for

Justice Dunlop granted the receivership order in Edmonton on February 2, on the companies' own application and having read the Seventh Affidavit of Nigel Woollam, sworn January 27; it was filed on February 9. It appoints PwC receiver of all of both companies' property under s. 13(2) of the Judicature Act, and consolidates the two actions, 24-3260771 and 24-3280927, for administrative efficiency, "provided that the estates of the Debtors shall not be consolidated." The deemed bankruptcies of the two companies, scheduled for February 15 and March 31, 2026, were stayed, and the proposal trustee was discharged, per the Receivership Order, Feb. 2, 2026, p. 1 and paras. 2, 30, 35, 40.

The order carried the NOI proceeding's machinery across. PwC was authorized to continue the sale process approved on October 28, 2025, "including to negotiate, finalize, and execute definitive agreements arising from the letters of intent received during the SISP." The administration charge of September 11, 2025, securing the proposal trustee, its counsel and the companies' counsel, continued but was capped at the amount outstanding on February 2, and the NOI professionals' costs of bringing the receivership application were to be paid up to $100,000. The receiver's own charge, for its and its counsel's fees, ranks ahead of all security interests, subject to three sections of the BIA. The receiver could borrow to fund its work, against a Receiver's Borrowings Charge ranking behind the administration charge, the Sayer Charge, the receiver's charge and the same BIA charges. One power came with a condition: PwC could abandon or release any interest in the companies' real or personal property, but a licence or authorization issued by the AER only "upon further order of the Court." Sayer's "Summary of Marketing Process and Offers Received," dated December 18, 2025 and filed as a confidential exhibit to the Woollam affidavit, was sealed, per the Receivership Order, Feb. 2, 2026, paras. 3(a), 3(u), 18–19, 22, 33, 39.

PwC's notice to creditors, dated February 10, lists seven secured creditors — Canadian Natural Resources Ltd., Canadian Natural Resources Northern Alberta Partnership, Journey Energy Inc., the County of Paintearth No. 18, Computershare Trust Company of Canada, 2162183 Alberta Ltd. and Ponoka County — and gives the amount of every one as "Unknown." The list of unsecured creditors was obtained from Forden's books and records: a schedule totalling $4,406,571.55. The largest is Mona Star Ranch Ltd., at $241,339.61, followed by Ptarmigan Oil and Gas Accounting Ltd. at $178,880.96; among the others are Enerplus Corporation at $100,000.00, Treasury Board and Finance, Crown Debt Collections, at $89,983.90, and EPCOR at $69,876.87, beside a long run of individuals, couples, estates, farms and ranches. PwC engaged Veracity Energy Services Limited to assist with technical advice on managing the daily operations under care and maintenance. The notice is signed by Paul Darby, senior vice-president, per the Notice of Receiver, Feb. 10, 2026, pp. 1–2 and Sch. A; the certificates attached to the orders PwC proposes in September are for signature by Rick Osuna, senior vice-president, Deals, per the Application, Sept. 28, 2026, pp. 31–32, 47–51.