Highlights

• Finder contracted the Hakuryu-5 semi-submersible rig from ENEOS Drilling for three firm wells, with an option for two more.

• Timor-Leste's petroleum regulator approved the Field Development Plan for the Kuda Tasi and Jahal fields on 9 July 2026.

• Finder targets a final investment decision on 30 November 2026, with first oil aimed for late 2027 to early 2028.

• TIMOR GAP took a 34% interest in the project, leaving Finder with 66% and operatorship of PSC 19-11.

Finder Energy Holdings Limited (ASX:FDR) has put a drill rig behind its Timor-Leste oil plans. On 15 October 2026 the company signed a contract with ENEOS Drilling Limited for the Hakuryu-5 semi-submersible rig, equipment and personnel to drill the Kuda Tasi and Jahal (KTJ) development wells. Shares were trading at A$0.280 on 23 October 2026, up 3.70%.

A Rig Contract With Conditions Attached

The contract covers three firm development wells and an option for two more. Drilling is due to start between 1 December 2027 and 15 March 2028 and should take about 150 days, with a minimum commitment of 140 days. The estimated total value is about US$42.3 million on a gross joint venture basis, with the final amount depending on operating days and rates. Staged bank guarantees totalling US$19.3 million (gross) are required.

Several approvals remain outstanding. ENEOS parent company and board approvals are due by 16 November 2026, while joint venture, government and Finder board approvals are due by 31 December 2026. If extra mooring equipment is needed and the parties cannot agree on costs, either side may terminate without liability.

Finder expects to fund its share mainly through project debt, which Barrenjoey DCM is helping arrange. The company has also secured long-lead items, including tubulars from Sumitomo, three Christmas trees from OneSubsea and completion equipment from SLB, and lined up AGR for drilling management.

Regulatory Approval Clears the Path

The rig contract follows a regulatory milestone. On 9 July 2026, Timor-Leste's petroleum regulator, the Autoridade Nacional do Petróleo, approved the Field Development Plan for KTJ. Finder said the approval clears the path to a final investment decision (FID) and positions the project as the first offshore oil field developed under Timor-Leste's sovereign petroleum regime.

Phase 1 comprises three production wells, two at Kuda Tasi and one at Jahal, plus a subsea production system, flexible flowlines and umbilicals, and the redeployed Petrojarl I floating production storage and offloading vessel. The infrastructure is designed to support future tie-backs and a Phase 2 development within PSC 19-11. Finder has been operator since August 2024.

Partner, Resources and Balance Sheet

TIMOR GAP took a 34% interest in the project, cutting Finder's stake from 76% to 66%. TIMOR GAP will fund 50% of development capital expenditure up to a gross cap of US$338 million. An independent audit lifted gross 2C contingent resources by 14% to 25.5 million barrels.

For the half-year to 31 December 2025, Finder reported a net loss after tax of $11.08 million and cash of $17.6 million, after raising $26.9 million in gross equity. The Krill and Squilla discoveries carry a combined gross contingent resource of 23 million barrels (2C), and nearfield prospects hold a gross prospective resource of 116 million barrels (2U mean), as set out in the company's May 2026 update.

Milestones Ahead to First Oil

The company is targeting FID on 30 November 2026. Finder lists FID, an independent competent person's report, completion of debt financing, award of the engineering, procurement, construction and installation contract and further drilling arrangements among its near-term catalysts. First oil is targeted for late 2027 to early 2028.