Finder Energy’s KTJ offshore development in Timor-Leste has achieved a key milestone with an independent classification of 22.2 million barrels of 2P reserves, underpinning its push toward a Final Investment Decision.
- RISC classifies initial three-well KTJ development as ‘Reserves – Justified for Development’
- Gross 2P reserves estimated at 22.2 million barrels, with 2.2 million barrels contingent resources
- Finder’s net entitlement stands at 14.4 million barrels of 2P reserves
- Petrojarl I FPSO deemed suitable subject to modifications
- Project advances toward FID pending financing and regulatory approvals
Independent Audit Confirms Commercial Viability of KTJ Development
Finder Energy Holdings Limited (ASX:FDR) has crossed a significant threshold in its Kuda Tasi and Jahal (KTJ) oil development offshore Timor-Leste. Leading independent firm RISC Advisory has classified the initial three-well KTJ development as ‘Reserves – Justified for Development’ under the SPE Petroleum Resources Management System (SPE-PRMS), validating the project’s commercial prospects.
The report estimates gross 2P reserves at 22.2 million stock tank barrels (MMstb), covering two Kuda Tasi wells and one Jahal well. Additionally, 2.2 MMstb of gross 2C contingent resources remain for a potential fourth Kuda Tasi infill well, bringing total gross 2P plus 2C resources to 24.4 MMstb. Finder’s net entitlement, factoring in its 66% working interest and fiscal terms, is 14.4 MMstb on a 2P basis and 15.8 MMstb including contingent resources.
Subsea-to-FPSO Development Supported by RISC
RISC endorses the subsea development concept tied back to the Petrojarl I Floating Production Storage and Offtake vessel (FPSO), considering it suitable subject to planned life extension and topsides modifications. This aligns with Finder’s approved Field Development Plan, which has regulatory backing but still awaits final joint venture approvals and financing before project sanction.
The assessment incorporates detailed 3D geocellular static and dynamic reservoir modelling, surpassing the prior 1D probabilistic evaluation conducted in 2025. Dynamic simulations underpin production forecasts, which the company targets to commence by late 2027 or early 2028, contingent on final investment and financing outcomes. The report’s economic assumptions include a US$70 per barrel oil price and Timor-Leste fiscal terms, independently verified by RISC.
Financing and Regulatory Steps Remain Ahead
While the reserves classification marks a robust foundation for Final Investment Decision (FID), Finder continues to progress financing discussions, including a debt capital markets process led by Barrenjoey Debt Capital Markets. Expressions of interest have been received from banks, credit funds, and potential offtake partners. Regulatory approvals beyond the Field Development Plan, including key project agreements and development work programs, remain outstanding.
Finder’s CEO Damon Neaves highlighted the milestone’s significance, stating that the independent reserves classification confirms the KTJ resource base quality and scale. He emphasised the company’s focus on completing financing, partner arrangements, and regulatory processes to reach FID.
Resource Base and Project Maturation
The RISC report also reflects the maturation of the KTJ Project, transitioning from contingent resources classified as ‘Development Unclarified’ in 2025 to reserves justified for development in 2026. The potential fourth infill well’s contingent resources remain unrisked and subject to future development decisions, reflecting the project’s phased approach.
The Petrojarl I FPSO, owned by Finder, will undergo modifications and life extension works ahead of redeployment. Critical long lead items for the subsea production system have been secured, supporting the project’s engineering, procurement, construction, and installation (EPCI) phase.
The KTJ crude is characterised as a high-quality, light sweet oil, expected to be readily marketable, with ongoing discussions with potential offtakers progressing alongside financing talks.
Bottom Line?
The independent reserves classification bolsters KTJ’s credibility, but financing and regulatory hurdles remain pivotal before sanction and production.
Questions in the middle?
- Will Finder secure the necessary project financing to meet its late 2027 production target?
- How will regulatory approvals and joint venture agreements shape the timing of the Final Investment Decision?
- What impact will the potential fourth infill well have on the overall project economics and resource base?