Key highlights

  • Finder Energy Holdings Ltd (ASX:FDR) shares closed at $0.265, down 1.85%, on 19 October 2026.
  • A 15 October 2026 announcement says Finder signed a contract with ENEOS Drilling for the Hakuryu-5 semi-submersible for the KTJ development campaign offshore Timor-Leste.
  • The contract covers three firm wells from December 2027 with Options for two more, and is conditional on approvals.

Finder Energy Holdings Ltd (ASX:FDR) is an oil and gas company whose main asset is the KTJ Project offshore Timor-Leste, which it is developing with its joint venture partner TIMOR GAP. On 19 October 2026, shares ended the day at $0.265, down 1.85%. In an ASX announcement dated 15 October 2026, the company said it had executed a contract with ENEOS Drilling for the Hakuryu-5 semi-submersible drilling unit.

Contract terms

The contract covers a firm three-well program with options for two additional wells, plus associated equipment and personnel. Drilling is scheduled to start from 1 December 2027 and take about 150 days to drill and complete the wells for production, including completion assemblies and wellhead and Christmas tree installation ready for hook-up to the Petrojarl I FPSO. The company says the contract is at competitive market rates and aligns with its budget expectations.

The two optional slots provide flexibility for other operators to participate, which the company says could create cost and operational synergies, or to drill exploration or appraisal wells targeting tie-back opportunities within PSC 19-11.

Conditions and project status

The contract is conditional on joint venture, government and Finder board approvals by 31 December 2026, and on ENEOS Parent Company and board approvals by 16 November 2026. Finder says securing the rig, together with commitments for critical long-lead equipment and key services, shows the KTJ Project moving from development planning towards execution readiness ahead of a final Investment decision. The announcement describes the Hakuryu-5 as having a safety and performance record, with experience in Southeast Asia including campaigns for major operators.

The announcement attaches an annexure summarising the contract’s material terms and notes that the Hakuryu-5 is a semi-submersible unit with experience in Southeast Asia. The wells are planned for completion ready for hook-up to the Petrojarl I FPSO, which is part of the KTJ development concept, and the three firm wells are scheduled for roughly 150 days of work from the start date.

The company says it has also made commitments for critical long-lead equipment and key services, and that the rig contract provides visibility on the timing of a critical element of the KTJ development schedule. A final investment decision is the next major step, and the company says it is working with its joint venture partner TIMOR GAP towards that point. No financial terms for the rig are disclosed beyond the statement that rates align with budget.

Sector backdrop

The S&P/ASX 200 (ASX: XJO) stood at 8,845.70 at 4:25 pm (GMT+11) on 19 October 2026, up 0.44%, or 39.00 points, for the day. On the sector map, Energy rose 2.16%, the largest gain among the labelled segments. On the sector map for the session, Energy rose 2.16%, Industrials 0.93%, Financials 0.85%, Utilities 0.38% and Consumer Staples 0.25%, while Information Technology fell 1.35%, A-REIT 0.34%, Consumer Discretionary 0.18%, Telecommunication Services 0.16% and Health Care 0.13%.

Risks shareholders should weigh

The rig contract has not yet become unconditional and depends on approvals from several parties by set dates. A final investment decision on KTJ has not been taken, and the contract does not itself commit the project to development.

Drilling is scheduled for December 2027, so first production is still some time away, and offshore drilling campaigns can be affected by weather, equipment and cost changes. The announcement does not state the contract value or the project’s funding.

What’s next

The next dated items are ENEOS parent approvals by 16 November 2026 and joint venture, government and Finder board approvals by 31 December 2026, followed by drilling from 1 December 2027 if the contract proceeds.