Finder Energy advances toward production with new Timor-Leste offshore permit

Australian oil and gas junior Finder Energy (ASX: FDR) is confident it is on target to make the jump from from explorer to producer with the award of a large permit area offshore Timor-Leste.

The company recently signed and completed the acquisition of a 76% operating interest in production sharing contract (PSC) 19-11 off the coast of Timor-Leste.

The area contains an estimated 34 million barrels of discovered oil resources for the Kuda Tasi, Jahal, Krill and Squilla oil fields.

Fast-tracked development

Since winning the valuable licensing area in August, Finder has already commenced a work program for PSC 19-11 that includes reprocessing of historical 3D seismic data and concept select engineering for the development of Kuda Tasi and Jahal.

Finder is currently evaluating alternative development scenarios to investigate opportunities to reduce initial capital expenditure, accelerate first oil production and reduce operating expenditure.

Development scenarios for Kuda Tasi and Jahal are centred around a floating production, storage and offloading (FPSO) unit with production topsides connected via subsea flexible flow lines and umbilicals to a number of wells on the seafloor.

Feasibility discussions

Preliminary feasibility discussions are also underway, including consideration of the potential for an early production system—a low CapEx (single-well or phased) development based on rapid deployment to accelerate cash flow.

High flow tests on Kuda Tasi-2 have demonstrated superior reservoir performance, with initial production rates expected to be in the range of 25,000 to 40,000 barrels of oil per day, depending on well count, reservoir performance and FPSO facility constraints.

Excellent production rates have been proven at the nearby Laminaria/Corallina, Kitan and Buffalo oil fields—all of which produced from the same reservoir formation.

Capital raising

Finder recently completed a rights issue and placed the shortfall to raise $6 million, attracting new institutional investors onto the register to support its activities in Timor-Leste.

Chief executive officer Damon Neaves says Finder is also attracting early interest from several potential partners, either in the form of capital or development solution support.

“We will look to capitalise on these opportunities to maximise value in parallel with the execution of the project work streams, which will provide clarity on operational and capital requirements,” Mr Neaves said.