Finder Energy Targets Mid-2026 FID with FPSO Ownership to Fast-Track KTJ Oil Project

Mid-2026 FID Set to Unlock KTJ Development

Finder Energy (ASX:FDR) is pressing ahead with its Kuda Tasi and Jahal (KTJ) oil fields development in Timor-Leste, targeting a final investment decision (FID) by mid-2026. The company forecasts first oil production by late 2027 or early 2028, aiming to deliver initial production rates of 25,000 to 30,000 barrels of oil per day (bopd), with 14 to 15 million barrels produced in the first two years of operation. These projections are facility constrained and subject to development and regulatory risks but signal a potentially rapid cash flow ramp-up for the company.

Central to de-risking the KTJ Project is Finder’s ownership of the Petrojarl I (PJI) FPSO vessel, acquired for US$15 million. This strategic asset eliminates ongoing charter costs and extends field life by 2 to 3 million barrels, enhancing project economics and providing flexibility for future tie-backs such as the nearby Krill and Squilla discoveries. The PJI’s proven track record, including 98% uptime at the Atlanta Oil Field in Brazil, supports its suitability for KTJ’s production profile. Such ownership is a rare move for a company at this stage and signals Finder’s commitment to controlling critical infrastructure to accelerate development.

Strategic Alliances and Funding Framework

Finder’s partnership with TIMOR GAP, which has farmin rights to a 34% interest in the project, secures a promoted share of development capital expenditure, with TIMOR GAP funding 50% of the total capex from FID. This arrangement reduces Finder’s upfront capital burden and aligns interests with the Timor-Leste state-owned entity.

Complementing this, the company has formed a strategic alliance with Schlumberger (SLB) and Subsea7 through the Subsea Integration Alliance (SIA) to fast-track engineering, procurement, and construction phases. The alliance’s collaborative contracting model shares risk and cost, aiming to maintain schedule momentum toward first oil. SLB’s FEED work is complete on time and budget, and critical long-lead items commitments are expected by May 2026.

To fund its share of development costs, Finder is progressing a debt financing process managed by Barrenjoey Debt Capital Markets, attracting strong lender interest from banks, credit funds, and offtakers. The company recently completed a $21 million tranche of a $33 million placement and launched a $3 million Share Purchase Plan to accelerate KTJ engineering and procurement efforts. These equity raises build on earlier capital injections that underpin the project’s financial foundation. Finder’s net cash position stood at $32.3 million as of May 2026, supporting ongoing development activities.

Resource Base and Exploration Upside

The KTJ fields hold 25.5 million barrels of 2C contingent resources (gross) certified by independent RISC Advisory, with a combined probabilistic estimate incorporating Kuda Tasi and Jahal. Reservoir modelling forecasts rapid payback with strong aquifer drive and high-quality Laminaria Formation reservoirs producing light sweet oil (55-60° API). Ownership of the PJI FPSO is expected to extend field life and ultimate recovery.

Beyond KTJ, Finder’s portfolio includes significant exploration and appraisal opportunities across Asia Pacific and the UK North Sea. Notably, the Krill and Squilla oil discoveries have seen a material increase in gross rock volume following new 3D seismic reprocessing, suggesting larger resource potential. The company holds a 66% interest in PSC 19-11 in Timor-Leste and maintains operated licences in prolific basins such as the Northern Carnarvon Basin in Australia, where prospects like Gem offer additional upside potential.

Operational Progress and Project Delivery

Finder has completed detailed reservoir modelling, well engineering, and subsea production system design to enable fast-track development. The company’s engineering studies for the PJI FPSO life extension and modifications are underway, with vessel ownership facilitating a low carbon footprint through redeployment rather than new builds.

Drilling rig evaluations and commercial discussions are ongoing to secure development wells, with the field development plan (FDP) submission anticipated in the second quarter of 2026. The company has also secured long-term tenure over the KTJ Development Area for up to 25 years, a critical regulatory milestone for project sanction and future production hub plans.

Finder’s recent capital raising activities, including the $21 million placement and $3 million Share Purchase Plan, are aligned with accelerating the KTJ Project’s development schedule, supporting procurement and engineering milestones. This financial momentum complements ongoing technical progress and strategic partnerships, positioning the company for the upcoming FID milestone.

Finder Energy’s approach to controlling critical infrastructure, securing strategic partnerships, and layering funding sources reflects a concerted effort to fast-track the KTJ Project while managing development risks. The company’s broader portfolio and exploration prospects offer additional optionality beyond the near-term development horizon.