Finder Energy Secures KTJ Project Approval and $27M Placement

Regulatory Approval Unlocks KTJ Project Development

Finder Energy (ASX:FDR) crossed a major milestone with the Timor-Leste petroleum regulator ANP granting approval for the Field Development Plan (FDP) for its flagship KTJ Project. This regulatory green light, announced after the June quarter, effectively clears the path for the company’s targeted Final Investment Decision (FID) in Q3 2026. The approval validates the extensive technical and commercial groundwork laid over the past two years and marks a significant de-risking event for the offshore development.

The approved FDP outlines a phased development centred on redeploying the Petrojarl I FPSO alongside three subsea production wells and associated infrastructure. Designed with expansion capacity, the facilities aim to support future discoveries and tie-back opportunities within PSC 19-11, establishing a long-term production hub for Timor-Leste’s offshore sector.

Environmental Impact Statement Advances with Stakeholder Engagement

During the quarter, Finder submitted the Environmental Impact Statement (EIS), prepared in collaboration with MCC Sustainable Futures and Timor-Leste’s Halona Serena advisory group. The EIS assesses potential environmental and social impacts and proposes mitigation measures, with public consultation well underway, including a session held in Dili in June 2026. This process remains on track to complete regulatory review in the current quarter, complementing the FDP approval in securing the project’s social licence to operate.

Capital Raising and Financing Progress De-Risk Development

To underpin the accelerated development timeline, Finder completed a $27 million placement in two tranches, with the second tranche finalised post-quarter following shareholder approval. These funds are earmarked for procurement of critical long-lead items such as subsea Christmas Trees and Wellheads, securing manufacturing slots that reduce supply chain risks ahead of FID. Concurrently, the company continues to advance debt financing led by Barrenjoey Debt Capital Markets, attracting expressions of interest from banks, credit funds, and potential offtake partners, providing confidence in securing the remainder of development capital.

Petrojarl I FPSO Redeployment Nears Final Engineering Stage

Engineering and procurement for the Petrojarl I FPSO redeployment are progressing well, with Front-End Engineering and Design (FEED) substantially complete. Tenders have been received from qualified international shipyards for modification and life-extension works, and evaluations are underway. The engineering scope includes mooring design, topsides processing, and turret rotation, with key uncertainties identified and managed to maintain the targeted FID schedule. Preparations for towage from Tenerife and mooring system installation are also advancing.

Drilling Campaign and Future Growth Opportunities

Preparations for the 2027 drilling campaign continue, with rig contracting negotiations and procurement of drilling long-lead items in progress. Hazard Identification (HAZID) workshops have been conducted to assess operational risks associated with drilling, subsea installation, and FPSO startup, reinforcing the project’s commitment to health, safety, and environmental standards.

Beyond Phase 1, Finder is actively evaluating additional opportunities within PSC 19-11, leveraging a hub-based development strategy centred on the Petrojarl I FPSO to commercialise nearby discoveries like Krill and Squilla, potentially reducing future development costs and extending field life.

Portfolio Management in UK and Australia

Finder’s UK North Sea portfolio remains under active management, with technical studies on the P2610 Licence (Boaz) integrating recent adjacent discoveries to enhance prospectivity. However, the joint venture on P2530 has decided to relinquish the licence after concluding the project does not meet commercial investment thresholds.

In Australia’s North West Shelf, Finder maintains its acreage position with high-impact exploration prospects in WA-547-P and AC/P 61, despite a challenging investment environment. The company is progressing technical de-risking studies to position for an eventual recovery in exploration activity.

Financial Position and Corporate Update

Finder ended the quarter with $32.4 million in cash, bolstered by the recent placement. Exploration and evaluation expenditure for the period was $9.7 million, primarily supporting KTJ Project advancement. The company appointed Stephen Gardyne, Managing Director of Amplus Energy, as a Non-Executive Director, bringing extensive FPSO and offshore operations expertise, including detailed knowledge of the Petrojarl I.

With the FDP approval and funding progress, Finder is poised to reach FID in the coming quarter, moving closer to first oil targeted for late 2027 or early 2028. The company’s strategic focus on securing critical equipment, finalising financing, and advancing engineering workstreams underscores its commitment to delivering value from the KTJ Project.