Highlights

  • Finder Energy (ASX:FDR) shares surged 21.05% to A$0.34 after the KTJ Project received Field Development Plan (FDP) approval.
  • The approval clears the regulatory pathway for the Joint Venture to progress towards a Final Investment Decision (FID) during the current quarter.
  • Phase 1 development will target production from the Kuda Tasi and Jahal oil fields using three production wells linked to the redeployed Petrojarl I FPSO.
  • Finder continues advancing financing, contracting and procurement activities while maintaining a target of first oil between late 2027 and early 2028.

Finder Energy (ASX:FDR) emerged as one of the strongest performers on the ASX during morning trade on July 9, with the shares rising 21.05% to A$0.34 following a major regulatory milestone for its flagship Kuda Tasi and Jahal (KTJ) Project in Timor-Leste. The market responded positively after the company announced that Timor-Leste's petroleum regulator, the Autoridade Nacional do Petróleo (ANP), had approved the project's Field Development Plan (FDP).

The approval represents one of the most significant milestones achieved by Finder since assuming operatorship of the project in 2024. Beyond providing regulatory authorisation for development, the decision substantially reduces project risk and enables the Joint Venture to move towards a Final Investment Decision (FID), an important step before construction and production activities commence.

Share Price Responds to a Major Development Milestone

Finder Energy's share price climbed more than 21% as investors reacted to what management described as a defining milestone for the company.

Regulatory approvals are often among the most important catalysts for offshore energy developments because they provide confirmation that technical, environmental and engineering work has satisfied government requirements. In Finder's case, the FDP approval completes the technical evaluation and development planning phase while providing the regulatory framework for commercial development of the Kuda Tasi and Jahal oil fields.

The announcement appears to have improved investor confidence regarding the project's timeline and its ability to advance towards development.

Why the FDP Approval Matters

The approved Field Development Plan is considered the principal regulatory authorisation required for development of the KTJ Project.

According to Finder, the approval confirms regulatory acceptance of the selected development concept, validates the engineering and subsurface work completed during Front-End Engineering and Design (FEED), enables progression towards Final Investment Decision, supports debt financing discussions and allows execution of major engineering, procurement and contracting activities.

Management stated that the project has progressed from previously stranded discoveries to an approved offshore development within approximately two years through collaboration between Finder, TIMOR GAP, contractors and the Timor-Leste Government.

For investors, reducing regulatory uncertainty is often one of the most important milestones during the transition from project evaluation to development.

Development Plan Targets First Oil in 2027-2028

The approved development strategy centres on a phased offshore production system.

Phase 1 will include three production wells, comprising two wells within the Kuda Tasi field and one well at Jahal. Production will be tied back to the redeployed Petrojarl I Floating Production Storage and Offloading (FPSO) vessel through subsea production systems, flexible flowlines and associated subsea infrastructure.

Finder indicated that the facilities have been deliberately designed with expansion capacity to support future discoveries across Production Sharing Contract (PSC) 19-11, allowing additional tie-back developments in subsequent phases.

The company continues targeting first oil between late 2027 and early 2028, with procurement of critical long-lead equipment already underway to maintain the accelerated development schedule.

Project De-Risking Supports Financing Activities

With the principal regulatory approval now secured, Finder's immediate focus shifts towards completing financing and commercial agreements.

Management said project financing, major engineering contracts, procurement activities and drilling contracts continue progressing in parallel ahead of the planned Final Investment Decision.

Obtaining the FDP approval is expected to provide greater certainty during debt financing negotiations while supporting execution of the remaining commercial workstreams required before construction activities accelerate.

The company also noted that earlier procurement activities were initiated before FID to preserve manufacturing capacity and minimise potential delays to the targeted production schedule.

Infrastructure Designed for Long-Term Growth

Beyond the initial production phase, Finder has designed the KTJ development with expansion opportunities in mind.

The planned offshore infrastructure has sufficient capacity to accommodate future discoveries within PSC 19-11, potentially establishing a long-term offshore production hub for Timor-Leste.

Management believes this approach provides flexibility for future field developments while extending the productive life of offshore infrastructure beyond the initial Kuda Tasi and Jahal production programme.

The project is also expected to become the first offshore oil field developed under Timor-Leste's sovereign petroleum regime, representing an important milestone for the country's offshore energy sector.

What Investors Are Watching

Following today's announcement, investors are likely to monitor several important milestones during the September quarter.

The company expects to progress towards Final Investment Decision, complete project debt financing, award integrated engineering, procurement, construction and installation (EPCI) contracts, execute drilling contracts and continue evaluation of additional growth opportunities through interpretation of reprocessed seismic data across the Krill and Squilla discoveries.

Completion of these activities will be important as the project advances from regulatory approval towards construction and eventual production.

Share Performance

Finder Energy shares traded at A$0.34 during the morning session on July 9, representing a 21.05% gain for the day.

The rally followed the announcement of FDP approval, with investors responding positively to the reduction in regulatory risk and the clearer pathway towards Final Investment Decision. While near-term share movements may continue to reflect project milestones, future performance is also likely to depend on financing, contract awards and execution of the development programme.

Conclusion

Finder Energy (ASX:FDR) has achieved a significant development milestone with regulatory approval of the Field Development Plan for the KTJ Project in Timor-Leste. The approval substantially reduces project risk, enables progression towards Final Investment Decision and supports financing and contracting activities required before offshore development begins.

The strong share price reaction reflects investor interest in the project's advancement towards commercial production. Looking ahead, Final Investment Decision, financing completion, contract awards and progress towards first oil are expected to remain the principal milestones shaping investor sentiment as Finder advances one of Timor-Leste's most significant offshore energy developments.