Finder clears major KTJ hurdles as Timor-Leste project nears FID

KTJ wins regulatory clearance as FID hurdles narrow

Finder Energy Holdings Limited (ASX:FDR) has cleared two of the most important regulatory gates for its Kuda Tasi and Jahal project, but the Timor-Leste development is still not sanctioned. The Autoridade Nacional do Petróleo approved the Field Development Plan on 9 July 2026 and the Environmental Impact Statement on 28 September, establishing the regulatory framework for development, construction, installation, operations and eventual decommissioning.

The approvals support a development built around three subsea production wells tied back to the redeployed Petrojarl I floating production, storage and offloading vessel. Finder operates PSC 19-11 with a 66% interest, alongside TIMOR GAP, and says the project is now progressing through the contracting, financing and joint venture approval work required for Final Investment Decision.

Independent assessment gives the first three wells reserve status

“Location map showing PSC 19-11 and the KTJ Project with discovered oil fields and tie-back prospects 2,3.”

RISC has classified the initial development as “Reserves - Justified for Development”, assigning it 22.2 million stock tank barrels of gross 2P reserves. Finder’s stated net entitlement is 14.4 MMstb, reflecting government profit oil and royalties. The assessment follows the independent KTJ reserves classification reported in August and also includes 2.2 MMstb of gross 2C Contingent Resources for a potential fourth Kuda Tasi infill well.

That distinction matters. The three-well programme has been assessed as sufficiently mature to sit in the reserves category, while the potential infill well remains contingent on further evaluation and the removal of commercial or technical hurdles. RISC supported the subsea-to-FPSO concept and considered Petrojarl I suitable, subject to life extension work and topsides modifications.

Rig and EPCI work move the project towards execution

Finder has completed international tendering for the subsea engineering, procurement, construction and installation scope, with selected contractors now in negotiations. The tender results are being folded into the project cost estimate, integrated schedule and execution plan, although the announcement does not disclose final project costs or contract values.

After quarter end, Finder executed a conditional contract with ENEOS Drilling for the Hakuryu-5 semi-submersible rig. It provides for three firm development wells, with options for two more, and is scheduled to begin on 1 December 2027, with about 150 days allocated to drill and complete the initial wells. The contract follows the conditional Hakuryu-5 contract disclosed earlier, but remains subject to approvals from the joint venture, the Timor-Leste government, Finder’s board, and ENEOS’s parent company and board.

Financing and the November deadline remain decisive

The Farmin Agreement’s FID condition has been extended to 30 November 2026, giving Finder more time to complete contracting, financing and joint venture approvals. That date is not a project sanction: the company still needs to secure debt financing, finalise major work packages and obtain the necessary approvals before the development can proceed.

Finder says its debt process with Barrenjoey has benefited from greater clarity on costs and execution arrangements following the EPCI tender. The company ended September with A$25.4 million in cash, after quarterly exploration and evaluation payments of A$6.4 million and development payments of A$2.2 million, while the Appendix 5B indicates 3.8 quarters of funding based on the reported cash outflow. That balance provides time, but not a substitute for the project financing required for construction and drilling.

Exploration portfolio retains optionality outside Timor-Leste

“Finder’s North West Shelf portfolio (refer to Table 1 for details).”

Finder is also maintaining its wider exploration portfolio. In the UK North Sea, new discoveries in the adjacent Norwegian licence have improved the geological interpretation of the Boaz area on P2610, while seismic reprocessing on P2655 is expected to support prospect maturation during 2026. In Australia, the company is seeking more time for WA-547-P and continues to look for a farm-in partner for drilling the Gem Prospect on AC/P 61.

Those assets remain secondary to the capital and execution demands of KTJ. The immediate test is whether Finder can convert regulatory progress, a reserve base and preliminary contracting into a fully financed development before the extended 30 November FID condition expires.