Finder Energy reports significant progress in its Kuda Tasi and Jahal oil fields development, including promising production simulations and active partner engagement for funding. The company also advances exploration efforts in the UK North Sea and Australia, maintaining a solid cash position.
- Kuda Tasi and Jahal reservoir modelling shows potential flow rates of 25,000-40,000 bopd
- Successful identification of suitable FPSOs for project redeployment
- Ikan 3D seismic reprocessing 57% complete, enhancing reservoir imaging
- Active process underway to secure development partners and funding
- Closing cash balance of $7.3 million at quarter end
Kuda Tasi and Jahal Development Momentum
Finder Energy Holdings Limited (ASX: FDR) has delivered a robust quarterly update for the period ending December 31, 2024, underscoring its advancing development of the Kuda Tasi and Jahal oil fields in Timor-Leste. The company completed reservoir production modelling simulations that indicate flow rates between 25,000 and 40,000 barrels of oil per day (bopd), contingent on well count and facility constraints. This aligns the project’s potential output with nearby analogue fields such as Buffalo and Kitan, reinforcing the commercial viability of the development.
Complementing these technical strides, Finder has successfully evaluated global Floating Production Storage and Offloading (FPSO) assets, identifying several vessels suitable for redeployment to the Kuda Tasi and Jahal project. This strategic move could accelerate project timelines and reduce capital expenditure by leveraging existing infrastructure.
Seismic Data and Partner Engagement
The company’s Ikan 3D seismic data reprocessing initiative is now 57% complete and progressing on schedule and within budget. Utilizing advanced PSDM and full waveform inversion technologies, this effort aims to sharpen subsurface imaging, optimize well placement, and unlock additional appraisal and exploration upside, particularly around the Krill and Squilla discoveries.
Finder is actively engaging with potential development partners and financiers, with the dataroom now open and multiple parties evaluating the opportunity. The company reports strong interest from a diverse range of stakeholders and expresses confidence in concluding partnership and funding agreements within 2025. This is a critical phase as the project moves from concept select to front-end engineering and design (FEED), setting the stage for a final investment decision.
Exploration Activities in the UK and Australia
Beyond Timor-Leste, Finder continues to advance its exploration portfolio in the UK North Sea and Australia’s North West Shelf. In the UK, the company pursues an Infrastructure-Led Exploration (ILX) strategy, focusing on near-term drilling opportunities supported by existing production infrastructure. Despite challenging political and investment climates, Finder maintains a prudent cost posture while progressing seismic reprocessing and technical studies to derisk prospects.
In Australia, Finder holds two permits with significant exploration targets, including the WA-547-P permit on the prolific Dorado play trend, with over 500 million barrels of recoverable oil prospective resources identified. The company recently secured a three-year extension on this permit, providing flexibility to align farmout activities with regional drilling results.
Financial Position and Outlook
Finder closed the quarter with $7.3 million in cash, reflecting ongoing investment in exploration and development activities. The company also recorded a non-cash income recognition following the termination of an option to acquire Beagle No. 1 Pty Ltd, which will positively impact the profit and loss statement without affecting cash flow.
As Finder progresses toward key 2025 milestones, including resource certification, updated production forecasts, and FEED commencement, the market will be watching closely for the successful securing of development partners and capital to underpin the Kuda Tasi and Jahal project’s advancement.
Bottom Line?
Finder’s next critical test will be converting strong technical progress and partner interest into firm development commitments in 2025.
Questions in the middle?
- Which FPSO candidates will be selected and how will their redeployment impact project economics?
- What timeline and capital requirements will the early production system entail to accelerate First Oil?
- How will evolving political and investment conditions in the UK affect Finder’s farmout prospects?