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Finder Energy Enters into Farm-In Agreement with TIMOR GAP at KTJ Oilfields Project

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By Imelda Cotton - 
Finder Energy ASX FDR Farm-In Agreement TIMOR GAP KTJ Oilfields Project
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Finder Energy (ASX: FDR) has entered into a farm-in agreement with the National Oil Company of Timor-Leste (TIMOR GAP) that will boost TIMOR GAP’s equity in the PSC 19-11 joint venture by 10% to 34%.

The joint venture is developing the Kuda Tasi and Jahal oilfields (KTJ) project, which hold an estimated 22 million barrels of contingent resources.

The Timor Sea project has the potential to become a transformative asset for Finder, marking its first producing oil asset and establishing a foundation for long-life production and sustained cash flow generation.

KTJ CapEx Contribution

Under the terms of the agreement, TIMOR GAP will contribute 50% of the total KTJ project development CapEx from a final investment decision (FID), capped at US$338 million.

The company will also provide immediate funding support of up to US$15m for the period prior to FID, including 24% of costs to accelerate the decision.

Finder chief executive officer Damon Neaves said the farm-in would de-risk KTJ’s first oil and position the company to secure debt funding.

“We are delighted to strengthen our partnership with TIMOR GAP through this agreement, which increases its equity and demonstrates confidence in our project acceleration strategy,” he said.

“This transaction demonstrates the strength of the PSC 19-11 joint venture and the confidence we have in the KTJ project as we move swiftly through the development process.”

Critical FEED Work Streams

An integrated team is currently progressing critical front-end engineering and design (FEED) work streams to advance the KTJ project through assurance checks and project decision gates.

Finder’s current focus is on transforming design concepts into a fully-defined field development plan to support FID, with the company also undertaking key commercial and regulatory work including partner alignments, regulatory approvals and engagement with contractors and suppliers, along with various risk and ESG assessments.

The company will now look to secure the remaining funding and finalise critical project elements to enable FID by mid-2026.