Finder Energy Raises A$30m to Accelerate KTJ Oil Project Development

Major Capital Injection to Fast-Track KTJ Development

Finder Energy Holdings Limited (ASX:FDR) has announced a significant capital raising effort, securing firm commitments for a A$27 million institutional placement alongside a share purchase plan (SPP) targeting up to an additional A$3 million. The combined A$30 million raise is earmarked to accelerate the Kuda Tasi and Jahal (KTJ) oil project in Timor-Leste, underpinning the company's ambition to reach a final investment decision (FID) by mid-2026 and commence first oil production by late 2027 or early 2028.

This equity raise comes as Finder transitions the KTJ project from concept to execution, following a series of de-risking milestones including the acquisition of the Petrojarl I FPSO vessel and a farmin agreement with TIMOR GAP, its joint venture partner. The raise will primarily fund procurement of critical long lead items (LLIs) such as subsea trees, flowlines, controls and umbilicals, alongside engineering studies and FPSO modifications essential for maintaining the accelerated development timeline.

Strategic Partnerships and Infrastructure Ownership Bolster Project Viability

Finder’s ownership of the Petrojarl I FPSO, secured for US$15 million, is a pivotal factor in de-risking the KTJ project. The vessel, noted for its excellent operating uptime and versatility, is expected to reduce operating costs and extend field life by 2-3 million barrels. This infrastructure ownership also enhances project economics by eliminating charter payments and easing debt financing prospects.

Moreover, the farmin agreement with TIMOR GAP commits the partner to fund 50% of the total development capital expenditure up to a gross cap of US$338 million before FID, and 34% thereafter. This arrangement significantly reduces Finder's upfront capital burden and aligns incentives for project delivery.

Robust Technical Foundations and Accelerated Engineering Progress

The KTJ project benefits from comprehensive subsurface evaluation, including five well penetrations with logs, core, and flow tests, supported by an independent resource upgrade verified by RISC Advisory. The project encompasses 25 million barrels of gross 2C contingent resources, with forecast initial production rates of 25,000 to 30,000 barrels of oil per day, facility-constrained.

Front-End Engineering Design (FEED) for the subsea production system and development wells was completed on time and on budget in February 2026 under a strategic alliance with Schlumberger (SLB). This alliance mobilises extensive resources across the Subsea Integration Alliance, expediting engineering, procurement, construction, and installation (EPCI) phases.

Finder is actively negotiating rig contracts and advancing regulatory approvals, with the Field Development Plan (FDP) submission imminent. The company is also engaging with lenders, receiving strong expressions of interest to secure debt financing for its share of development capex, managed by Barrenjoey Markets Pty Limited.

Equity Raise Details and Use of Proceeds

The placement comprises two tranches: an unconditional tranche raising approximately A$21 million through 42 million new shares under existing placement capacity, and a conditional tranche of approximately A$6 million subject to shareholder approval at an Extraordinary General Meeting scheduled for 12 June 2026.

The SPP offers eligible shareholders in Australia and New Zealand the chance to subscribe for up to A$30,000 in new shares at the same price as the placement (A$0.50 per share), representing a 15.3% discount to the last closing price on 27 April 2026.

Proceeds will be allocated to critical path LLIs and acceleration costs (A$24 million), FPSO holding and engineering costs (A$11.5 million), and working capital plus general corporate purposes (A$7.9 million). This funding is designed to secure long-lead subsea equipment ahead of FID, maintain project momentum, and provide balance sheet flexibility.

Positioned for Execution Amid Ongoing Risks

With a strengthened balance sheet and key infrastructure secured, Finder is well positioned to execute its acceleration strategy for the KTJ project. However, the company acknowledges risks including potential delays in securing approvals, supply chain constraints for long-lead items, inflationary pressures on capital expenditure, and uncertainties in debt financing completion.

Finder’s strategic priorities remain focused on achieving FID by mid-2026 and advancing first oil production by late 2027 or early 2028, leveraging its ownership of the Petrojarl I FPSO and the funding partnership with TIMOR GAP. The company’s recent regulatory milestone securing long-term tenure over the KTJ development area further solidifies its operational footing long-term tenure for KTJ.

Technical validation of the Petrojarl I FPSO’s suitability and integration into the KTJ project has been confirmed, underpinning confidence in the development schedule Petrojarl I FPSO suitability. The strategic alliance with SLB continues to accelerate engineering and procurement activities, critical to maintaining the project timeline.