Highlights

  • RISC Advisory has independently classified the initial three-well KTJ development as Reserves - Justified for Development under the SPE Petroleum Resources Management System.
  • The report includes Gross 2P Reserves of 22.2 MMstb for the initial three-well development, plus Gross 2C Contingent Resources of 2.2 MMstb for a potential fourth infill well.
  • Finder's net entitlement is 14.4 MMstb of 2P Reserves, or 15.8 MMstb on a 2P plus 2C basis, from its 66% working interest in the PSC.
  • RISC supports the subsea-to-FPSO development concept and considers the Petrojarl I a suitable FPSO for the development, subject to planned life extension and topsides modifications.

Finder Energy Holdings Limited (ASX:FDR) shares last traded at $0.26. The company announced on 20 August 2026 that independent advisory firm RISC Advisory Pty Ltd has completed an independent resource audit and report of the Kuda Tasi and Jahal (KTJ) development project in PSC 19-11, offshore Timor-Leste.

The report represents an upgrade from RISC's previous 2025 classification of the resource as Contingent Resources, reflecting the maturation of the project through detailed engineering, front-end engineering and design work and an approved Field Development Plan.

Reserves and Resources Classification

RISC has independently classified the initial three-well KTJ development, comprising two Kuda Tasi production wells and one Jahal production well, as Reserves - Justified for Development under the SPE Petroleum Resources Management System (SPE-PRMS). The report assesses Gross 2P Reserves of 22.2 MMstb for this initial development.

A separate Gross 2C Contingent Resource of 2.2 MMstb has been assessed for a potential fourth Kuda Tasi infill well, providing total Gross 2P plus 2C resources of 24.4 MMstb. Finder's net entitlement, reflecting its 66% working interest in the PSC after application of royalties, cost recovery and profit oil sharing, is 14.4 MMstb of 2P Reserves or 15.8 MMstb on a 2P plus 2C basis.

The classification represents a change from Finder's previously reported 2C Contingent Resource for the Kuda Tasi and Jahal fields of 25.5 MMstb, which had been independently reviewed by RISC in 2025. The company said the change reflects both the recognition of reserves connected with the approved Field Development Plan and an upgrade from 1D volumetric probabilistic modelling to 3D geo-cellular static and dynamic reservoir modelling.

Development Concept and FPSO

RISC supports the proposed development concept of subsea production wells tied back to a Floating Production Storage and Offtake (FPSO) vessel, and considers the Petrojarl I, owned by Finder, to be a suitable FPSO for the KTJ development, subject to planned life extension and topsides modifications prior to redeployment.

The initial three-well development has been classified as Reserves based on the approved field development plan, with the company noting that final joint venture and regulatory approvals and financing remain to be finalised prior to project sanction. The reported reserves represent petroleum quantities estimated to be commercially recoverable under the assumptions applied in the RISC assessment.

Basis of the Assessment

RISC's updated assessment incorporated the company's recently completed detailed 3D geocellular static modelling, together with the development concept defined in the approved Field Development Plan and the application of economic cut-offs. Detailed dynamic reservoir simulations were undertaken to generate production profiles forming the basis of the 2026 resource estimates, using an oil price assumption of US$70 per barrel.

The Contingent Resources associated with the potential fourth infill well have been sub-classified as Development Unclarified, as the infill development plan is yet to be finalised. These Contingent Resources have been stated on an unrisked basis, with RISC estimating the fields to be fully appraised with a high probability of the development proceeding.

Path to Final Investment Decision

The company said the KTJ Project is currently transitioning to the EPCI phase and approaching Final Investment Decision (FID). Front-End Engineering Design was completed for the subsea production system and well construction in February 2026, and certain infrastructure, including the Petrojarl I FPSO and critical path long-lead items, has been secured, though major project agreements including the rig, EPCI contract and shipyard remain subject to ongoing tendering and commercial processes.

The Field Development Plan was approved by the regulator in July 2026. Project finance remains outstanding, with the company progressing a Debt finance process with Barrenjoey Debt Capital Markets, having received expressions of interest from banks, Credit funds and prospective offtake participants. Finder is targeting completion of the development phase and commencement of first production by late 2027 or early 2028.

What to Watch Next

Progress on the company's debt finance process with Barrenjoey Debt Capital Markets, and any resulting expressions of interest converting into committed financing, represents a key milestone on the path to FID. Outstanding joint venture and regulatory approvals, including approval of key project agreements and the development work program and budget, remain to be finalised.

Given the company's target of first production by late 2027 or early 2028, updates on the shipyard campaign for the Petrojarl I FPSO's life extension and topsides modifications, as well as progress on the rig and EPCI contract tendering processes, will be relevant markers ahead of project sanction.

Risks

The KTJ Project has not yet reached Final Investment Decision, and the company has explicitly noted that final joint venture and regulatory approvals, along with financing, remain to be finalised prior to project sanction. Major project agreements including the rig, EPCI contract and shipyard remain subject to ongoing tendering and commercial processes, introducing execution risk to the targeted production timeline.

Reserve and resource estimates are inherently subject to uncertainty, and the company has cautioned that estimates valid when originally calculated may change materially as new information or techniques become available through additional production, drilling and analysis.

Key Takeaways

Finder Energy Holdings' independent reserves classification represents a material step in the KTJ Project's maturation, with RISC's upgrade of the initial three-well development from Contingent Resources to Reserves - Justified for Development reflecting the substantial technical and commercial progress made since the original 2025 assessment. With an approved Field Development Plan, secured long-lead infrastructure items including the company-owned Petrojarl I FPSO, and an ongoing Debt Financing process with Barrenjoey Debt Capital Markets, the project appears to be advancing methodically toward Final Investment Decision. The remaining financing, partner and regulatory approvals will determine whether the company can meet its targeted first production window of late 2027 to early 2028.