Risks and Rewards: Can Finder Deliver Rapid Oil Production Amid Development Challenges?
Finder Energy is fast-tracking development of the Kuda Tasi and Jahal oil fields in Timor-Leste, targeting initial production rates of up to 40,000 barrels per day and 10 million barrels in the first 18 months. A strategic alliance with SLB is key to accelerating engineering and reducing project risks.
- Accelerated FEED advancing Kuda Tasi and Jahal fields development
- Forecast production of 25,000–40,000 barrels per day initially
- Strategic alliance with SLB to fast-track project execution
- High-impact exploration portfolio across Asia Pacific and UK North Sea
- Tight capital structure with $9.5 million net cash and $44 million market cap
Strategic Acceleration in Timor-Leste
Finder Energy (ASX, FDR) has unveiled a significant acceleration in the development of its Kuda Tasi and Jahal oil fields, located offshore Timor-Leste. The company forecasts initial production rates between 25,000 and 40,000 barrels of oil per day (bopd), with an expected output of 10 million barrels within the first 18 months of operation. This rapid ramp-up is underpinned by an accelerated Front End Engineering and Design (FEED) process, now running approximately 12 months ahead of schedule.
Central to this acceleration is a strategic development alliance with global energy technology leader SLB. This partnership brings extensive technical expertise and project management capabilities, significantly de-risking the project execution and reducing Finder’s forward capital expenditure through a collaborative contracting model.
Robust Resource Base and Development Potential
The combined gross 2C contingent resources for Kuda Tasi and Jahal stand at 22 million barrels, with net 2C resources to Finder of approximately 16.7 million barrels. The reservoirs are characterised by high-quality Laminaria Formation sands, supported by regional aquifers that provide natural pressure support, enabling strong production profiles. The oil is light and sweet, with API gravity between 55 and 60 degrees, enhancing its market value.
Finder’s development plan leverages conventional FPSO (Floating Production, Storage and Offtake) vessels, which are readily available for lease or redeployment, allowing for a simpler and faster project execution without the need for newbuilds or pipeline infrastructure. This approach supports a low-risk, near-field development strategy with potential upside from nearby prospects such as Lanjara and Krill, which could materially expand the project’s scale.
Exploration and Growth Across Multiple Basins
Beyond Timor-Leste, Finder maintains a diversified portfolio of high-impact appraisal and exploration opportunities across the Asia Pacific region and the UK North Sea. Notably, the UK North Sea licences include the Wagtail discovery, which holds 19.2 million barrels of gross 2C resources. In Australia’s prolific North West Shelf, Finder holds key permits with multiple prospects along the Dorado trend, an area with a strong exploration success rate and significant resource potential.
The company’s tight capital structure; with a market capitalisation of $44 million and net cash of $9.5 million as of late August 2025; positions it well to capitalise on upcoming catalysts. These include potential final investment decisions (FID) in 2026, following the accelerated FEED completion and ongoing funding discussions.
Path to Value Recognition
Finder’s management highlights the multiple re-rating opportunities ahead as the project advances towards FID and production. The transition of resources from contingent (2C) to proven reserves (2P) upon FID is expected to unlock significant value, with enterprise value per barrel metrics currently suggesting substantial upside relative to peer benchmarks. The company’s collaboration with SLB and the accelerated schedule aim to deliver first oil rapidly, with capital expenditure payback anticipated within the first year of production.
While the outlook is promising, the company cautions that production forecasts depend on various uncertainties, including development risks, partner funding, regulatory approvals, and equipment availability. Continued appraisal and exploration will be critical to fully realise the portfolio’s potential.
Bottom Line?
As Finder Energy fast-tracks development and exploration, investors will watch closely for FID timing and exploration results that could reshape its valuation trajectory.
Questions in the middle?
- When exactly will Finder reach its final investment decision for the Kuda Tasi and Jahal development?
- How will ongoing funding negotiations impact the project’s timeline and scale?
- What are the prospects and timelines for exploration wells at nearby targets like Lanjara and Krill?
