Risks Loom as Finder Energy Accelerates KTJ Project with Major FPSO Buy
Finder Energy has acquired the Petrojarl I FPSO from Amplus Energy for US$15 million, aiming to fast-track its KTJ oil development project with a targeted final investment decision by mid-2026 and first oil by the end of 2027. This move is supported by a two-tranche institutional placement raising A$25 million at a 21.3% discount.
- Acquisition of Petrojarl I FPSO for US$15 million in cash and shares
- Two-tranche institutional placement to raise A$25 million at A$0.37 per share
- FPSO ownership expected to reduce operating costs and extend field life
- Strategic partnership with Amplus includes board appointment and operational contracts
- Equity raise proceeds to fund FPSO acquisition, FEED acceleration, and KTJ Project development
Strategic Acquisition to Accelerate KTJ Project
Finder Energy Holding Limited has taken a decisive step in advancing its Kuda Tasi Jahal (KTJ) oil development project by acquiring the Petrojarl I Floating Production Storage and Offloading (FPSO) vessel from Amplus Energy for US$15 million. This acquisition secures a critical piece of infrastructure, enabling Finder to integrate the FPSO into its front-end engineering and design (FEED) phase and target a final investment decision (FID) by mid-2026, with first oil anticipated by the end of 2027.
The Petrojarl I is a proven asset with a strong operational track record, including 98% uptime in its previous deployment in Brazil. Its excellent condition, following recent shipyard campaigns, and its fit-for-purpose design for the KTJ Project, promise operational efficiencies and cost savings compared to leasing alternatives.
Equity Raising to Support Growth
To fund the acquisition and accelerate project development, Finder has launched a two-tranche, non-underwritten institutional placement aiming to raise A$25 million by issuing approximately 67.6 million new shares at A$0.37 each. This price represents a 21.3% discount to the last closing price, reflecting the market’s appetite for the company’s growth strategy.
The proceeds from the equity raise will cover the FPSO acquisition payments, holding and maintenance costs, identification of long-lead items, and the acceleration of FEED studies. Additionally, funds will support working capital and general corporate purposes, ensuring the company is well-positioned to meet upcoming project milestones.
Strategic Partnership and Board Enhancement
As part of the transaction, Amplus Managing Director Steve Gardyne will join Finder’s board, bringing over 30 years of offshore energy sector experience. Amplus will also be awarded contracts for FPSO FEED, modifications, and operations and maintenance at market rates, subject to approvals. This partnership aligns operational expertise with strategic asset ownership, potentially enhancing project execution and operational reliability.
Operational and Economic Benefits
Ownership of the Petrojarl I is expected to deliver significant economic benefits, including substantial operating expenditure savings by eliminating third-party charter payments, extending the field life by 2-3 million barrels of oil equivalent, and facilitating future tie-backs and developments. The FPSO’s production systems are compatible with KTJ’s requirements, supporting a production capability of 25,000 to 30,000 barrels per day.
Finder’s strategic acceleration is further supported by recent resource upgrades and a strategic alliance with Schlumberger (SLB) to fast-track FEED and project delivery. The company is also progressing funding discussions, rig evaluations, and regulatory approvals to maintain momentum toward FID.
Looking Ahead
With the acquisition expected to complete in December 2025 following equity raise tranches and shareholder approvals, Finder is positioning itself to capitalize on its growing portfolio of oil and gas assets across Timor-Leste, Australia’s North West Shelf, and the UK North Sea. The company’s focus remains on delivering value through operational efficiencies, resource development, and strategic partnerships.
Bottom Line?
Finder’s Petrojarl I acquisition and equity raise mark a pivotal acceleration of the KTJ Project, but execution risks and market volatility remain key watchpoints.
Questions in the middle?
- Will Finder secure shareholder approval for the second tranche of the equity raise as planned?
- How will integration of the Petrojarl I FPSO impact project timelines and capital expenditure?
- What are the potential risks to achieving FID by mid-2026 amid market and operational uncertainties?
