We present the theory, design and numerical modeling of novel, pulsed sub-THz oscillators based on cylindrical, two-dimensional (2D) periodic surface lattice (PSL) interaction cavities. Investigation of the electronic efficiency and power dependence on the magnitude of the magnetic guide field and the electron beam current is investigated. While cyclotron absorption effects have been studied in low order, 1D BWOs, few studies have considered cyclotron absorption in highly overmoded, 2D-PSL oscillators. Here we investigate certain behavior associated with cyclotron absorption in 2D-PSL devices with over 400 modes. This electron cyclotron absorption is shown to be a universal process, independent of frequency and transverse cavity size. Dispersive behavior shows minimal group velocity at the point of interaction and demonstrates similarities with degenerate band edge phenomena. In this work, the fundamental mode selection mechanism relies on the coupling of high-order volume and surface waves. Good agreement between theory and modeling is presented.