Highlights

  • Finder Energy has lodged both its Environmental Impact Statement and Field Development Plan for the KTJ Project, with Debt Financing supported by a Brent forward curve approximately USD 15 per barrel above pre-conflict levels for CY2028 and CY2029.
  • An Invitation to Tender for the shipyard scope of work for the redeployment of the Petrojarl I FPSO has been issued, with critical path long-lead items secured to support targeted First Oil in late 2027 or early 2028.
  • FDR shares traded at AUD 0.35 on 28 May 2026, down 4.11%, reflecting broader sector conditions even as project execution milestones advance.

 

Finder Energy Holdings (ASX:FDR) shares were trading at AUD 0.35 on 28 May 2026, a decline of AUD 0.015 or 4.11% on the day. The intraday move runs counter to the operationally constructive tone of the company's KTJ Project update, suggesting the market is pricing in execution risk and the inherent uncertainty of pre-FID oil and gas development. At AUD 0.35, the stock remains in territory that reflects the speculative nature of an emerging oil developer still navigating the regulatory, financing and engineering milestones between project concept and commercial production.

Where the KTJ Project Stands

The Kuda Tasi and Jahal oil fields, located offshore Timor-Leste within Production Sharing Contract TL-SO-T 19-11, are at an advanced stage of pre-FID preparation. The company's 28 May 2026 update confirms that two cornerstone regulatory submissions — the Environmental Impact Statement and the Field Development Plan — have been lodged with Timor-Leste's Autoridade Nacional do Petróleo e Minerais and are progressing through the approval process. The EIS addresses the identification and management of environmental and social risks, prepared using specialist consultancy MCC Sustainable Futures in Partnership with local Timorese advisory group Halona Serena. The FDP establishes the technical, operational, and economic feasibility of the development.

Consultation with the regulator and other Stakeholders in relation to both documents is underway, with the outcomes of these applications to be announced when received. The regulatory pathway includes four completed steps — Development Area approval, EIS Terms of Reference approval, EIS submission, and FDP submission — with the remaining pathway dependent on the ANP's review timeline.

Debt Financing and Brent's Role

Barrenjoey DCM has been engaged to run a debt financing process for the KTJ Project's development Capital Expenditure. The company reports that strong expressions of interest have been received from lenders including banks, Credit funds and offtakers, and that the process is tracking in line with the FID timetable. The debt process has benefited materially from an improved Brent Crude forward price environment, with CY2028 and CY2029 forward prices currently approximately USD 15 per barrel above pre-conflict levels, driven by ongoing geopolitical developments in the Middle East.

The improvement in the Brent forward curve carries a dual benefit: it enhances the project's modelled Economics and increases financing capacity, as debt service calculations rely on projected Revenue at forward oil prices. For a project targeting First Oil in late 2027 or early 2028, the CY2028 and CY2029 forward curves are directly relevant to lender coverage ratios and overall debt quantum.

FPSO Redeployment Progress

An Invitation to Tender for the shipyard Scope of Work covering the redeployment and life extension of the Petrojarl I FPSO has been issued by Amplus Energy to qualifying shipyards. Engineering studies underpinning the ITT have been completed by a group of specialist contractors: First Marine Solutions for the mooring system and anchor location design, Apollo Engineering for the repurposing and topside processing flow assessment, Det Norske Veritas for the fatigue study, and the SIA consortium — comprising Subsea7, SLB, and OneSubsea — for the interface between the FPSO and subsea production system. The Scope of Work covers all modifications and life extension works required for redeployment in accordance with relevant HSEQ regulations.

Drilling Campaign and Long-Lead Procurement

Finder is advancing multiple workstreams for the 2027 development well campaign. Commercial arrangements for the drilling rig are progressing, long-lead items including casing and completion equipment have been secured, and bids in response to an ITT for drilling management services are being evaluated. A Letter of Intent signed with SundaGas in April 2026 formalises a rig-sharing arrangement designed to reduce costs and maximise operational synergies across both companies' Timor Sea drilling campaigns.

Several critical path long-lead items have been reserved or secured in line with the company's acceleration strategy, designed to protect the Supply chain and project schedule ahead of the EPCI phase. Bridging work between current project planning and the EPCI phase is being jointly progressed by the FDR-SIA Integrated Team, with objectives including delivering firm pricing and project scheduling for selected items, minimising capital expenditure while maintaining schedule, and exploring opportunistic equipment alternatives.

Upside Potential Beyond KTJ

PSC 19-11 contains material follow-on potential that the company is beginning to formalise. The Krill and Squilla oil discoveries hold combined gross contingent resources of 23 million barrels (2C), and multiple low-risk nearfield exploration prospects carry combined gross prospective resources of 116 million barrels (unrisked 2U mean). The KTJ Project is being positioned as a central processing hub via the Petrojarl I, allowing future tie-back developments to Leverage spare processing capacity and existing infrastructure at materially lower capital intensity than standalone developments.