Finder Energy is fast-tracking its Kuda Tasi & Jahal offshore development in Timor-Leste, aiming for first oil by late 2027 or early 2028 with strong production forecasts and secured funding.
- KTJ project targets ~30,000 bopd initial production
- Field Development Plan approved, FID set for Q3 2026
- Strategic farmout with TIMOR GAP funds 50% of capex
- Petrojarl I FPSO ownership extends field life
- Significant contingent and prospective resources across portfolios
KTJ Project Fast-Tracks to Production
Finder Energy (ASX:FDR) is accelerating its flagship Kuda Tasi & Jahal (KTJ) offshore development in Timor-Leste, targeting first oil by late 2027 or early 2028. The project forecasts initial production rates of approximately 30,000 barrels of oil per day (bopd), with an expected 14 to 15 million barrels produced in the first two years. This rapid timeline is underpinned by an approved Field Development Plan (FDP) and a Final Investment Decision (FID) targeted for the third quarter of 2026.
The KTJ development benefits from a streamlined infrastructure approach; no fixed platforms or new processing facilities; relying instead on a redeployed FPSO vessel, Petrojarl I, which the company fully owns. This ownership is expected to lower operating expenses and extend field life by an additional 2 to 3 million barrels, while also providing flexibility to tie back nearby discoveries within the PSC 19-11 licence area.
Funding and Strategic Partnerships De-risk Development
Funding for the KTJ project is substantially de-risked through a strategic farmout agreement with TIMOR GAP, which will contribute 50% of the total development capital expenditure from FID, amounting to a gross cap of US$338 million. TIMOR GAP’s participation includes up to US$20 million applied to long lead items pre-FID, with Finder retaining a 66% interest and operatorship.
Finder is also progressing a well-advanced debt financing process managed by Barrenjoey Debt Capital Markets, attracting strong lender interest from banks, credit funds, and offtakers. The financing timetable aligns with the planned Q3 2026 FID, supporting the company’s accelerated development schedule.
Resource Upgrades and Exploration Upside
The KTJ project’s gross contingent resources have been independently certified by RISC Advisory at 25.5 million barrels (2C), with high-quality Laminaria Formation reservoirs producing light, sweet crude (55-60° API). Reservoir modelling forecasts robust production with rapid capital payback.
Beyond KTJ, Finder holds significant upside in nearby discoveries including Krill and Squilla, where recent 3D seismic reprocessing revealed material increases in gross rock volume; up to 243% in Squilla; suggesting larger resource potential. The company’s portfolio extends across Timor-Leste, the UK North Sea, and Australia, with combined contingent and prospective resources offering multiple high-impact development and exploration opportunities.
Experienced Leadership and Market Position
Finder’s board and management team bring a track record of delivery, with CEO Damon Neaves and Chairman Bronwyn Barnes steering the company through this critical development phase. The company’s market capitalisation stands at approximately $183 million with net cash of $31.6 million as of mid-July 2026, providing a solid financial foundation amid ongoing capital raising efforts.
Key upcoming catalysts include securing a drilling rig, awarding major contracts for engineering, procurement, construction and installation (EPCI), and finalising debt financing to underpin the FID. The Petrojarl I FPSO’s proven redeployment record and strategic partnerships with service providers like SLB and Amplus Energy further bolster the project’s execution confidence.
Bottom Line?
Finder Energy’s KTJ project is poised for a significant production milestone by early 2028, but execution risks around financing and contract awards remain critical to watch.
Questions in the middle?
- Will the company secure the development rig in time to meet the Q3 2026 FID target?
- How will evolving oil market conditions impact debt financing terms and project economics?
- What is the potential scale of additional resources from appraisal drilling in nearby discoveries?