Finder Energy (ASX: FDR) is raising approximately A$30 million to fast-track its KTJ oil project towards Final Investment Decision (FID) by mid-2026.
The funding initiative comprises an A$27 million institutional placement and a Share Purchase Plan (SPP) targeting up to A$3 million, with new shares being offered at A$0.50 per share.
The placement received firm commitments, with Tranche 1 raising approximately A$21 million for 42 million shares.
A second tranche of A$6 million for 12 million shares is conditional on shareholder approval at an EGM expected on 12 June 2026.
Proceeds are specifically earmarked for critical long-lead items, acceleration costs for First Oil, and engineering studies related to the floating production, storage, and offloading (FPSO) vessel.
KTJ Project Timelines and Resources Confirmed
Finder Energy has reiterated its clear development timeline for the KTJ Project, targeting FID by mid-2026 and First Oil by late 2027/early 2028.
The project’s resource base remains robust, with RISC Advisory certifying KTJ gross 2C contingent resources at 25.5 million barrels (MMbbl).
This includes Jahal 1C contingent resources of 19.0 MMbbl and 3C contingent resources of 34.6 MMbbl.
Initial forecast production rates are anticipated to be between 25,000 and 30,000 barrels of oil per day (bopd). The company expects to produce approximately 14 to 15 MMbbl of oil in the first two years of operation.
De-Risking Milestones Achieved
Over the past year, Finder Energy has systematically de-risked the KTJ Project through a series of key milestones.
This includes the completion of Front-End Engineering and Design (FEED) for the subsea production system and development wells in February 2026.
A significant strategic step was securing ownership of the Petrojarl I FPSO for US$15 million.
Phase 1 engineering confirmed its technical feasibility for redeployment, supporting a production rate of around 25,000 bopd.
Regulatory certainty was also bolstered with the award of Development Area tenure for up to 25 years by ANP, the Timor-Leste regulator, in March 2026.
This approval is a critical precursor to the Field Development Plan (FDP) submission.
TIMOR GAP Partnership and Debt Funding
The development of KTJ is further strengthened by its strategic partnership with TIMOR GAP, the national oil company of Timor-Leste.
Under their farmin agreement, TIMOR GAP will fund 50% of the total development capital expenditure from FID.
Importantly, TIMOR GAP has committed to accelerating up to US$20 million gross for pre-FID long-lead items, providing crucial early-stage financial support.
Finder Energy, and its adviser Barrenjoey, are actively engaging lenders, reporting strong interest in securing debt funding for the majority of Finder's share of the final development capex.
Broader Portfolio Upside
Beyond the KTJ Project, Finder Energy maintains a diverse portfolio with identified appraisal and exploration upside.
Discoveries such as Krill and Squilla in PSC 19-11 offer additional oil resources.
Seismic reprocessing has significantly increased the gross rock volume estimates for these prospects.
The company also holds exploration assets in the UK North Sea and Australia, providing longer-term growth potential and diversification for the portfolio.
Strategic Capital for Project De-Risking
Finder Energy's dual announcements position the company to accelerate the KTJ oil project by securing crucial funding for long-lead items and engineering.
With key project milestones met and strategic partnerships in place, the company is de-risking its path towards FID and first oil, while retaining potential for future portfolio growth.
