Can Finder Energy Fast-Track Kuda Tasi and Jahal to First Oil?
Finder Energy has spotlighted its Kuda Tasi and Jahal oil development opportunity at the APAC Energy Capital Assembly, revealing a robust resource base and a streamlined development strategy promising rapid returns.
- Presentation of Kuda Tasi and Jahal oil development at APAC Energy Capital Assembly
- Combined 2C contingent resources of 45 million barrels of high-quality light sweet oil
- Prospective resources estimated at 116 million barrels with low-risk exploration upside
- Development plan featuring conventional FPSO with fast payback within the first year
- Ongoing funding process and strong reservoir performance forecasts
Context and Presentation
Finder Energy Holdings Limited took centre stage at the APAC Energy Capital Assembly in Singapore this June, promoting its promising Kuda Tasi and Jahal oil development opportunity located in Timor-Leste’s PSC 19-11 block. CEO Damon Neaves presented a detailed overview of the company’s assets, development plans, and resource estimates, underscoring the potential for a fast-track project that could generate strong cash flows.
Resource Base and Exploration Potential
The company highlighted a combined 2C contingent resource estimate of 45 million barrels of oil across the Kuda Tasi and Jahal fields, characterised by light, high-quality oil with API gravity exceeding 55°. Beyond these discovered resources, Finder also outlined a substantial prospective resource base of approximately 116 million barrels, supported by a portfolio of low-risk exploration prospects such as Lanjara, Krill, and Squilla. These prospects benefit from robust 3D seismic data and a proven oil province with a historical exploration success rate of 71% on the block.
Development Strategy and Production Forecasts
Finder’s development approach centres on a conventional Floating Production Storage and Offloading (FPSO) vessel, chosen for its availability and cost-effectiveness, avoiding the need for pipeline infrastructure. The reservoir quality is described as excellent, with dynamic modelling forecasting initial production rates between 25,000 and 40,000 barrels of oil per day, depending on facility constraints. Notably, the company anticipates capital expenditure payback within the first year of production, with a forecast of 10 million barrels produced in the initial 18 months.
Risks and Forward-Looking Considerations
While the presentation exudes confidence, Finder duly notes the inherent uncertainties typical of oil and gas projects. These include development risks, funding requirements, regulatory approvals, and market conditions. The company’s forward-looking statements caution investors about the probabilistic nature of resource estimates and the need for further appraisal and evaluation to confirm commercial viability.
Outlook and Market Implications
Finder Energy’s promotion of the Kuda Tasi and Jahal opportunity signals a pivotal moment for the company as it seeks to advance these assets towards production. The combination of a substantial resource base, high-quality oil, and a straightforward development plan positions Finder well to attract investment and deliver value. However, the success of this endeavour will hinge on securing funding and navigating the regulatory landscape in Timor-Leste.
Bottom Line?
Finder Energy’s Kuda Tasi and Jahal project could reshape its growth trajectory; if it can convert promising resources into producing barrels swiftly.
Questions in the middle?
- What is the timeline and likelihood for securing final investment decisions and funding?
- How will regional geopolitical and regulatory factors in Timor-Leste impact project development?
- What are the plans for appraisal drilling to convert prospective resources into contingent or proven reserves?
