Finder Secures 50% Capex for KTJ Project, Boosts Resources by 14%

Accelerating Development in Timor-Leste

Finder Energy Limited (ASX, FDR) is fast-tracking the development of its Kuda Tasi and Jahal (KTJ) oil fields in Timor-Leste, aiming for first oil by the end of 2027. The company announced a significant milestone by securing 50% of the estimated US$170 million development capital expenditure through a farmin agreement with TIMOR GAP, the national oil company of Timor-Leste. This deal not only provides crucial funding but also increases TIMOR GAP's participating interest from 24% to 34%, reinforcing the partnership's strategic importance.

The KTJ project holds gross 2C contingent resources of approximately 25 million barrels of oil, with initial production forecasts of 25,000 barrels per day, constrained by facility capacity. Finder expects to produce 10 million barrels within the first 18 months of operation, highlighting the project's strong cash flow potential.

Resource Upgrade and De-Risking

Independent verification by RISC Advisory has confirmed an increase in KTJ's contingent resources across all classes, notably a 31% rise in the 1C category and a 14% increase in 2C resources. This upgrade, based on newly reprocessed seismic data and technical studies, provides a firmer foundation for project de-risking and supports the company's efforts to secure debt financing.

Complementing this, Finder has entered a strategic development alliance with global energy technology leader SLB. This partnership has accelerated Front End Engineering and Design (FEED) activities by approximately 12 months, a major advancement that brings the project closer to execution. The alliance also reduces Finder's forward expenditure through a collaborative contracting model, further mitigating financial risk.

Broader Exploration Opportunities

Beyond KTJ, Finder is actively exploring high-impact appraisal and exploration opportunities across its Asia Pacific and UK North Sea portfolios. Updated seismic reprocessing has significantly enhanced resource estimates at the Krill and Squilla discoveries, with gross rock volumes increasing by 60% and 243% respectively. These developments suggest considerable upside potential that could add value to the company's asset base.

Finder's strategic priority remains the achievement of a Final Investment Decision (FID) by mid-2026, supported by a pipeline of catalysts including FPSO selection, securing drilling rigs, updated production forecasts, and debt funding arrangements. The company is positioning itself to deliver first oil by the end of 2027, a timeline that underscores its commitment to rapid project advancement.

Navigating Risks and Market Expectations

While the KTJ project is gathering momentum, Finder acknowledges the inherent uncertainties in oil and gas development, including regulatory approvals, partner funding, and market conditions. The probabilistic nature of resource estimates means that further appraisal and evaluation will be necessary to fully mature these assets. Nonetheless, the combination of secured funding, resource upgrades, and strategic alliances significantly de-risks the project and enhances its appeal to investors.