Finder Energy Holdings has completed the acquisition of the Petrojarl I FPSO, a critical step that de-risks the KTJ Project and accelerates its path to a Final Investment Decision expected by mid-2026. The company also secured A$25 million in funding and achieved a significant resource upgrade.
- Acquisition of Petrojarl I FPSO de-risks KTJ Project development
- A$25 million institutional placement funds FPSO purchase and FEED acceleration
- Farmin Agreement with TIMOR GAP secures 50% of development capex up to US$338 million
- Independent resource upgrade increases 2C contingent resources by 14%, 1C by 31%
- Progress on FEED, reservoir modelling, and regulatory engagement advances project
Strategic Infrastructure Acquisition
Finder Energy Holdings Limited has marked a pivotal milestone in its development journey by completing the acquisition of the Petrojarl I Floating Production Storage and Offloading (FPSO) vessel. This asset is set to become the cornerstone of the Kuda Tasi and Jahal (KTJ) Project’s offshore infrastructure, enabling the processing, storage, and export of crude oil from the planned development wells. Ownership of the Petrojarl I not only streamlines project execution but also promises capital and operational expenditure savings, extending the field’s productive life and facilitating future tie-backs.
Funding and Partnership Strengthening
To finance the FPSO acquisition and accelerate Front-End Engineering and Design (FEED) activities, Finder successfully completed a A$25 million institutional placement. Complementing this, a Farmin Agreement with Timor-Leste’s national oil company, TIMOR GAP, secures 50% of the development capital expenditure up to a gross cap of US$338 million. This partnership not only de-risks the funding landscape but also underscores the Timor-Leste Government’s commitment to establishing the KTJ Project as the nation’s first fully sovereign oil development.
Resource Base Enhancement
Adding further momentum, an independent audit by RISC Advisory has upgraded the KTJ Project’s contingent resources, with a 14% increase in best estimate (2C) resources and a notable 31% rise in low estimate (1C) resources. These revisions stem from improved seismic imaging, enhanced reservoir characterisation, and validation of higher recovery factors, collectively strengthening the project’s commercial viability and funding appeal.
Advancing Towards Final Investment Decision
Finder’s integrated project team, in collaboration with Schlumberger (SLB), has made substantial progress on the Accelerated FEED Project, refining subsea production systems, development well configurations, and FPSO integration. Regulatory engagement and environmental baseline surveys are underway, all aimed at supporting a Final Investment Decision (FID) targeted for mid-2026. The company is also moving forward with securing a drilling rig, updating dynamic reservoir models, and completing independent resource certification.
Portfolio Management and Exploration Outlook
Beyond Timor-Leste, Finder has farmed out its UK licence P2530 to Serica Energy, facilitating the development of the Wagtail discovery, while electing to relinquish licence P2656 due to insufficient prospectivity. In Australia’s North West Shelf, Finder maintains two permits with significant exploration potential, positioning itself for future opportunities as market conditions evolve. The company ended the quarter with a robust cash balance of A$17.7 million, underpinning ongoing development and exploration activities.
Bottom Line?
With key infrastructure secured and funding partnerships in place, Finder Energy is poised to deliver on its KTJ Project ambitions, but the path to FID will require navigating financing, regulatory, and operational milestones.
Questions in the middle?
- Will Finder secure full project financing to support the KTJ Project’s development beyond the Farmin Agreement?
- How will the recent resource upgrades influence the project’s valuation and investor appetite ahead of FID?
- What are the implications of relinquishing UK licence P2656 for Finder’s exploration strategy and portfolio balance?