Finder Raises $6M at $0.065 per Share to Accelerate Offshore Oil Development
Finder Energy has successfully raised $6 million through a placement led by major shareholder Longreach Capital, aiming to accelerate its Kuda Tasi and Jahal offshore oil development towards a Final Investment Decision.
- Placement raised $6 million at $0.065 per share
- Longreach Capital invested $2.7 million, increasing stake to 51.1%
- Funds earmarked for advancing Kuda Tasi and Jahal projects to FID
- Placement strengthens financial position ahead of FPSO procurement
- Shareholder approval pending for second tranche of shares
Strong Backing for Placement
Finder Energy Holdings Limited has closed a $6 million placement ahead of schedule, buoyed by robust support from institutional investors, new brokers, and family offices. Notably, Longreach Capital Investment Pty Ltd, the company's major shareholder, committed $2.7 million, underscoring its confidence in Finder's strategic direction. This injection of capital comes at a pivotal moment as Finder transitions into an offshore oil development company.
Strategic Use of Funds
The proceeds from the placement will be directed towards accelerating the Kuda Tasi and Jahal Oil Development project, with a clear focus on reaching the Final Investment Decision (FID). Key activities funded include completing technical and engineering studies, conducting due diligence on the Floating Production Storage and Offtake (FPSO) vessel, securing environmental approvals, and obtaining reserve certification for both fields. These steps are critical to de-risking the project and positioning Finder for first oil production targeted in 2027.
Capital Structure and Shareholder Dynamics
The placement involves two tranches, the first tranche of approximately 51.3 million shares issued immediately under ASX placement rules, and a second tranche of nearly 41 million shares reserved for Longreach, subject to shareholder approval at an upcoming Extraordinary General Meeting (EGM). Upon completion, Longreach’s stake will rise to 51.1%, consolidating its control and signaling strong alignment with management’s vision.
Market Position and Outlook
Post-placement, Finder’s market capitalization stands at approximately $24.5 million, with an enterprise value near $13.7 million after accounting for cash reserves. The company maintains a tight capital structure with 376 million shares on issue, offering shareholders significant leverage into upcoming catalysts such as FPSO contract awards and development funding arrangements. JP Equity Partners acted as lead manager, facilitating the smooth execution of the placement.
Looking Ahead
With funding secured, Finder is well-positioned to advance front-end engineering and design (FEED) activities and move decisively towards FID. The next critical milestones will include shareholder approval for the second tranche, progress on environmental and technical approvals, and securing an FPSO contract. Success in these areas will be vital to maintaining momentum towards first oil in 2027, a key value inflection point for the company.
Bottom Line?
Finder’s $6 million raise sets the stage for crucial development milestones, but shareholder approval and FPSO procurement remain key hurdles ahead.
Questions in the middle?
- Will shareholder approval for the second tranche be secured without delay?
- When will Finder finalize an FPSO contract and secure development funding?
- How will ongoing technical and environmental approvals impact the project timeline?