Finder Energy is rapidly advancing its KTJ oil development project with the strategic acquisition of the Petrojarl I FPSO and key partnerships, targeting a Final Investment Decision by mid-2026.
- Acquisition of Petrojarl I FPSO from Amplus Energy with mixed cash and share consideration
- Strategic alliance with SLB to fast-track project delivery and first oil by end 2027
- TIMOR GAP farmin secures 50% of development capital expenditure
- Equity raise and debt funding underway to support FPSO acquisition and development
- Independent resource upgrade verified by RISC Advisory enhances project outlook
Strategic Asset Acquisition
Finder Energy has announced significant progress towards the Final Investment Decision (FID) for its KTJ Project, anchored by the acquisition of the Petrojarl I (PJI) Floating Production Storage and Offloading (FPSO) vessel from Amplus Energy. The deal involves a combination of US$9 million in shares, cash payments totaling US$6 million, and the appointment of Amplus Managing Director Steve Gardyne to Finder’s board, signaling a close operational partnership going forward.
The PJI FPSO is a proven, cost-effective redeployment solution with a strong operational track record, including a world record for multiple redeployments and recent successful production in Brazil. Its specifications align well with KTJ’s production needs, offering 25,000 to 30,000 barrels of oil per day capacity and flexible processing facilities, which are expected to accelerate project timelines and reduce operating expenses.
Funding and Partnerships Drive Momentum
Complementing the acquisition, Finder has secured a farmin agreement with TIMOR GAP, which will cover 50% of the development capital expenditure estimated at US$170 million. This partnership significantly de-risks the financial burden and underpins the company’s funding strategy, which also includes an equity raise and engagement of Barrenjoey to secure debt financing.
Additionally, a strategic alliance with oilfield services giant SLB has been established to accelerate project delivery. SLB’s integrated expertise in subsea production systems, well construction, and installation is expected to streamline the engineering, procurement, and construction phases, targeting FID by mid-2026 and first oil by the end of 2027.
Resource Upgrade and Development Outlook
The KTJ Project’s resource base has been independently upgraded and verified by RISC Advisory, reinforcing the commercial viability of the Kuda Tasi and Jahal fields, along with significant upside potential at the Krill and Squilla discoveries. The acquisition of the PJI FPSO is anticipated to extend the field life by an additional 2 to 3 million barrels due to lower operating costs and enhanced production flexibility.
Finder’s management is actively progressing key development milestones, including rig evaluations, FEED completion, and dynamic reservoir modelling. These steps are critical to refining production forecasts and securing the necessary approvals and financing to move confidently towards FID.
Corporate and Market Position
With a market capitalization of approximately A$166 million and a pro forma enterprise value of A$142 million, Finder Energy is positioning itself as a nimble player in the oil and gas exploration and production sector. The company’s major shareholder, Longreach Capital Investment, has expressed support for the equity raise and strategic initiatives, providing additional confidence to the market.
Looking ahead, Finder’s board and management team, bolstered by the addition of Steve Gardyne, bring extensive offshore operational expertise that will be instrumental in navigating the complexities of offshore development and FPSO operations.
Bottom Line?
Finder Energy’s decisive moves with the Petrojarl I acquisition and strategic partnerships set the stage for a pivotal FID in 2026, but execution risks remain as funding and rig contracts are finalized.
Questions in the middle?
- Will Finder secure the drilling rig and finalize debt funding on schedule to meet the mid-2026 FID target?
- How will the integration of Amplus Energy’s management influence operational efficiency and project execution?
- What are the potential impacts of fluctuating oil prices and geopolitical factors on the KTJ Project’s development timeline?