How Finder Energy’s $338M Deal with TIMOR GAP Accelerates KTJ Oil Project
Finder Energy has locked in a significant funding agreement with TIMOR GAP, securing half of the KTJ Project’s development capex and upgrading its resource base, setting the stage for a Final Investment Decision by mid-2026.
- Binding Farmin Agreement with TIMOR GAP funds 50% of KTJ Project development capex up to US$338 million
- Independent resource upgrade increases Gross 2C Contingent Resources by 14%, enhancing project economics
- Accelerated FEED Project with SLB progresses, targeting FID and First Oil by mid-2026
- Significant increases in Gross Rock Volume for Krill and Squilla discoveries suggest further upside
- Near-term catalysts include FPSO selection, rig contracting, and debt funding arrangements
Strategic Funding Secured for KTJ Project
Finder Energy Holdings Limited has taken a major step forward in advancing its flagship KTJ Project offshore Timor-Leste by executing and completing a binding Farmin Agreement with TIMOR GAP. This agreement commits TIMOR GAP to fund 50% of the development capital expenditure up to a gross cap of US$338 million, significantly de-risking the project’s funding profile. Finder retains a 66% interest and operatorship, maintaining control over the project’s schedule and execution.
The deal underscores the Timor-Leste Government’s commitment to establishing the KTJ Project as the nation’s first fully sovereign oil development, a milestone that could have far-reaching implications for the country’s energy sector and economic future.
Resource Upgrade Enhances Commercial Viability
Complementing the funding news, an independent audit by RISC Advisory has delivered a 14% increase in the Gross 2C Contingent Resources for the Kuda Tasi and Jahal oil fields, bringing the total to 25.5 million barrels. The 1C Contingent Resources, representing a more conservative estimate, rose by 31%, providing a stronger downside case and further derisking the project.
This upgrade was driven by the incorporation of modern reprocessed 3D seismic data, improved reservoir characterization, and validation against analogous fields. The enhanced resource base strengthens the economics of the KTJ Project and bolsters Finder’s ability to secure project debt financing.
Technical Progress and Development Planning
Finder’s strategic alliance with Schlumberger (SLB) continues to yield progress through the Accelerated Front-End Engineering and Design (FEED) Project. Key milestones achieved include finalizing the field development concept and identifying long-lead procurement items, all aimed at enabling a rapid and cost-effective transition from Final Investment Decision (FID) to First Oil.
Critical near-term priorities include completing the selection and contracting of a Floating Production Storage and Offloading (FPSO) vessel and securing a rig for development drilling. These steps are essential to solidify the project’s development plan and maintain momentum towards the targeted FID by mid-2026.
Exploration Upside in Adjacent Discoveries
Beyond the core KTJ fields, Finder reported substantial increases in Gross Rock Volume for the Krill and Squilla oil fields; 60% and 243% respectively; based on updated seismic data. These discoveries offer material upside potential, either as future tiebacks to KTJ infrastructure or as a separate development hub within the PSC 19-11 permit area.
Ongoing technical work, including geological modeling and appraisal drilling evaluations, aims to further define these resources and unlock additional value for the company and its stakeholders.
Broader Portfolio and Market Challenges
Finder’s portfolio extends beyond Timor-Leste, with exploration assets in the UK North Sea and Australia’s North West Shelf. While the UK North Sea licences benefit from proximity to existing infrastructure and active drilling by partners like Equinor, political and investment uncertainties are complicating farmout efforts.
In Australia, Finder is maintaining its acreage position through innovative commercial strategies amid a challenging investment climate marked by policy uncertainty and environmental activism. The company is positioning itself to capitalize on a potential recovery in exploration activity.
Financial Position and Outlook
Financially, Finder completed a placement raising $5.7 million net during the quarter, bolstering its cash position to $7.6 million. Operating and investing activities continue to reflect the company’s active development and exploration programs.
Looking ahead, Finder’s focus remains on delivering a fully defined and fundable development plan for the KTJ Project, accelerating towards FID and First Oil, and securing key project elements with creative funding structures to minimise capital expenditure.
Bottom Line?
With funding secured and resources upgraded, Finder Energy is poised for a pivotal 2026, but execution risks and external market factors remain key watchpoints.
Questions in the middle?
- How will Finder finalize FPSO selection and secure rig contracts amid market uncertainties?
- What impact will political and regulatory developments in the UK and Australia have on Finder’s broader portfolio?
- To what extent can the Krill and Squilla discoveries be integrated into the KTJ development plan to enhance project value?
