Finder Energy Advances KTJ Project Toward Mid-2026 FID with Strengthened Financing

Regulatory Approvals Pave Way for Project Sanction

Finder Energy Holdings Limited (ASX:FDR) is steadily advancing its Kuda Tasi and Jahal (KTJ) oil fields project toward a targeted Final Investment Decision (FID) in mid-2026. The company has lodged two cornerstone regulatory approvals, the Environmental Impact Statement (EIS) and the Field Development Plan (FDP), both progressing through the approval process. The EIS, prepared alongside local advisory group Halona Serena, addresses environmental and social risks, while the FDP outlines the technical and economic feasibility of the development. These submissions mark critical steps in securing regulatory consent and underpin Finder’s strategy to establish KTJ as a long-term production hub within PSC 19-11.

The regulatory momentum follows the earlier ANP approval of the Development Area, which secured long-term tenure and set the stage for project sanction. This regulatory progress is a key milestone in the KTJ Project’s pathway to development, reinforcing the collaborative approach with Timor-Leste’s government and TIMOR GAP to unlock value. Finder’s CEO Damon Neaves emphasised the strategic importance of these approvals in positioning the project for accelerated development and future growth.

Debt Financing Supported by Stronger Brent Outlook

Finder has engaged Barrenjoey DCM to lead a debt financing process aimed at funding development capex. The company reports strong lender interest from banks, credit funds, and offtakers, with the process aligned to the FID timetable. Notably, the financing environment has improved materially due to a stronger Brent forward curve, with prices for calendar years 2028 and 2029 trading approximately US$15 per barrel above pre-conflict levels. This uplift enhances the project’s economics and increases its debt capacity, potentially lowering the overall cost of capital and improving returns.

FPSO Redeployment and Engineering Progress

In a move to fast-track the KTJ development, an Invitation to Tender (ITT) has been issued for the shipyard scope of work related to the redeployment of the Petrojarl I FPSO. Engineering studies conducted by Amplus Energy and specialist contractors, including First Marine Solutions, Apollo Engineering, and Det Norske Veritas, have informed the scope, which covers modification and life extension works compliant with HSEQ standards. The Petrojarl I FPSO, a central asset in the KTJ Project, is vital for processing and storing hydrocarbons, and its redeployment is a critical path item for the project’s accelerated timeline.

Accelerated First Oil Targeted with Long-Lead Procurement

Finder is actively securing critical long-lead items (LLIs) to maintain its fast-track schedule targeting First Oil in late 2027 or early 2028. The company has reserved manufacturing and delivery capacity for several key items, supported by joint venture partner TIMOR GAP. The integrated FDR-SIA team is focused on delivering firm pricing and schedules, minimising upfront capital expenditure, and exploring alternative suppliers to optimise cost and timing. This procurement strategy de-risks the supply chain and supports the transition to the Engineering, Procurement, Construction and Installation (EPCI) phase.

2027 Drilling Campaign Preparations Underway

Preparations for the 2027 drilling campaign are progressing with rig contracting, procurement of drilling equipment, and evaluation of bids for drilling management services. Finder has secured long-lead casing and completion equipment, aligning procurement with the planned drilling window. The company also maintains a Letter of Intent with SundaGas Banda to share rig and drilling costs, aiming to maximise operational synergies across Timor Sea campaigns. These efforts aim to streamline development drilling and support the accelerated timeline toward first production.

Exploring Future Tie-Back Opportunities for Growth

Beyond the initial KTJ development, Finder is conducting feasibility assessments of future tie-back opportunities within PSC 19-11 to support long-term growth. The region hosts significant contingent and prospective resources, including the Krill and Squilla discoveries with combined 2C contingent resources of 23 million barrels and multiple low-risk nearfield prospects estimated at 116 million barrels (unrisked mean). The KTJ Project’s strategy to establish the Petrojarl I FPSO as a central processing hub is expected to lower capital intensity and commercial thresholds for these follow-on developments, enhancing capital efficiency and potentially extending field life.

This integrated approach positions KTJ not merely as a standalone development but as a foundation for broader petroleum production in Timor-Leste, leveraging existing infrastructure to unlock value across the PSC 19-11 acreage. The project’s progress builds on recent equity raises and strategic initiatives to accelerate development, including the $30m equity raise to accelerate KTJ and the mid-2026 FID target with FPSO ownership.