How Finder Energy’s TIMOR GAP Deal Fast-Tracks KTJ Oil Production by 2025

Accelerated Development in Timor-Leste

Finder Energy (ASX – FDR) has unveiled a significant acceleration in the development of its Kuda Tasi and Jahal (KTJ) oil fields located offshore Timor-Leste. The company is targeting first oil by October 2025, a timeline supported by a recently announced farmin agreement with the national oil company TIMOR GAP. This partnership not only brings a strategic local partner onboard but also secures 50% of the development capital expenditure, capped at US$338 million, substantially de-risking the project’s financial outlook.

The KTJ project boasts combined gross 2C contingent resources estimated at 22 million barrels, with forecast initial production rates ranging between 25,000 and 40,000 barrels of oil per day. Finder projects that 10 million barrels could be produced within the first 18 months, underscoring the project's potential for strong early cash flow and rapid capital payback.

Strategic Alliances and Technical Progress

Complementing the farmin deal, Finder has formed a strategic development alliance with global energy technology leader SLB. This partnership has accelerated the Front End Engineering and Design (FEED) phase by approximately 12 months, a critical milestone that brings the project closer to a Final Investment Decision (FID) anticipated in 2026. The alliance leverages SLB’s extensive technical expertise and project management capabilities, reducing execution risk and optimizing project scope and scheduling.

Technical advances include high-quality reservoir modelling of the Laminaria Formation, which supports the forecast high flow rates. Modern seismic imaging has enhanced reservoir and fault delineation, improving well placement and resource evaluation. The project design favours a simple subsea production system with a conventional FPSO (Floating Production, Storage and Offtake vessel), enabling rapid and cost-effective development without the need for pipeline infrastructure.

Broader Exploration and Portfolio Strength

Beyond KTJ, Finder’s portfolio includes promising exploration assets in the Asia Pacific region and the UK North Sea. Notably, the UK North Sea licences contain the Wagtail discovery with 19.2 million barrels of gross 2C resources, while Australian permits in the prolific North West Shelf hold substantial prospective resources. These assets provide multiple avenues for future growth and value creation, complementing the near-term production focus in Timor-Leste.

Finder’s market capitalization stands at approximately A$149 million, with net cash of A$9.5 million as of early September 2025. The company’s leadership team, including CEO Damon Neaves and Technical Director Shane Westlake, is steering the KTJ project through these critical development phases, supported by a robust governance framework.

Outlook and Market Implications

The combination of secured funding, accelerated engineering design, and strategic partnerships positions Finder Energy well to transition from exploration to production. The KTJ project’s forecast production and cash flow potential could materially enhance the company’s valuation and market profile. However, the project remains subject to regulatory and third-party approvals, and execution risks inherent in offshore oil developments persist.

Investors and industry watchers will be closely monitoring upcoming milestones such as FPSO selection, rig securing for development wells, independent resource certification, and the Final Investment Decision. These events will be pivotal in confirming the project’s trajectory and underpinning Finder’s next phase of growth.