Finder Energy Secures US$170m Funding and Boosts KTJ Resources by 14%
Finder Energy has secured half of the development funding for its KTJ oil project in Timor-Leste through a farmin agreement with TIMOR GAP, alongside an independent resource upgrade that strengthens the project's outlook for first oil by 2027.
- 50% of KTJ Project development capex secured via TIMOR GAP farmin
- Independent RISC Advisory verification increases KTJ contingent resources
- Strategic alliance with SLB accelerates project engineering and design
- Final Investment Decision targeted by mid-2026, first oil by end-2027
- Exploration opportunities extend across Asia Pacific and UK North Sea portfolios
Accelerating Development in Timor-Leste
Finder Energy (ASX – FDR) is rapidly advancing its KTJ Project, which encompasses the Kuda Tasi and Jahal oil fields in Timor-Leste. The company announced a significant milestone with the securing of 50% of the project's development capital expenditure through a farmin agreement with TIMOR GAP, the national oil company of Timor-Leste. This deal not only brings in crucial funding but also increases TIMOR GAP's stake from 24% to 34%, while Finder retains operatorship and a 66% interest.
The farmin agreement, capped at US$338 million, includes immediate funding support prior to the Final Investment Decision (FID), underscoring the partnership's commitment to fast-tracking development. This financial backing substantially de-risks the project, providing a solid foundation for securing further debt financing and moving closer to first oil production.
Resource Upgrade and Strategic Alliances
Complementing the funding news, Finder announced an independent resource verification by RISC Advisory, which confirmed an increase in KTJ's contingent resources across all categories. The 2C contingent resources now stand at 25.5 million barrels gross, up from previous estimates, reinforcing the project's commercial viability and underpinning its cash flow potential.
Further accelerating progress, Finder has entered a strategic development alliance with global energy technology leader SLB. This partnership has expedited the Front End Engineering and Design (FEED) phase by approximately 12 months, a critical step in reducing technical and schedule risks. The integrated project team, led by Finder's COO and overseen by a joint steering committee, is focused on optimizing subsea production systems and well construction to enable rapid first oil delivery.
Looking Beyond KTJ – Exploration and Growth
While the KTJ Project remains the immediate focus, Finder is also advancing a portfolio of high-impact appraisal and exploration opportunities across the Asia Pacific region and the UK North Sea. These include prospects in prolific basins such as the North West Shelf in Australia and exploration licenses in the UK North Sea, which hold significant prospective resources. The company’s diversified asset base positions it well for future growth beyond the initial development phase.
Finder is targeting a Final Investment Decision by mid-2026, with first oil production anticipated by the end of 2027. Key upcoming catalysts include FPSO selection, securing drilling rigs, updated production forecasts, and continued progress on FEED components. These milestones will be closely watched by investors as they will determine the pace and scale of project execution.
Bottom Line?
With funding secured and resources upgraded, Finder Energy is poised to transform its KTJ Project from potential to production, setting the stage for a pivotal 2026.
Questions in the middle?
- How will regulatory and third-party approvals impact the timeline to FID?
- What are the detailed terms and conditions of the TIMOR GAP farmin agreement?
- How might evolving market conditions affect debt financing and project economics?
