- 01Cost-saving rig-sharing LOI signed with SundaGas for Timor-Leste drilling.
- 02KTJ Project development advances with FEED completion and regulatory approval.
- 03Strategic partnerships and funding progress de-risk path to FID and first oil.
Finder Energy (ASX: FDR) has entered a non-binding Letter of Intent (LOI) with SundaGas to collaborate on securing and sharing costs for a drilling rig in offshore Timor-Leste.
The agreement targets operational efficiencies and cost savings via shared logistics, procurement synergies, and improved rig utilisation across their respective drilling programs.
SundaGas plans an appraisal well at the Chuditch gas field, while Finder plans three development wells for its KTJ Project.
The combined drilling campaign for both companies is expected to total almost 200 drilling days.
KTJ Project Development Progress
The Autoridade Nacional do Petróleo e Minerais (ANP) approved the KTJ Project Development Area in March 2026.
This approval provides long-term tenure for up to 25 years and is a key regulatory milestone supporting progression toward the Field Development Plan (FDP).
Front-End Engineering Design (FEED) for the KTJ subsea production system and production wells was completed on schedule and on budget in February 2026.
This included subsurface planning, well design, subsea architecture, and facilities integration.
Finder targets Final Investment Decision (FID) by mid-2026 and first oil by late 2027.
FPSO Redeployment and Funding
Phase 1 engineering for redeploying the Petrojarl I FPSO to the KTJ Project confirmed its technical feasibility.
Modelling supports production capability of approximately 25,000 bopd.
TIMOR GAP's farm-in secures 50% of KTJ development capital expenditure, up to a gross cap of US$338 million.
Debt funding is being pursued for Finder's remaining share ahead of FID.
The acquired Petrojarl I FPSO is being integrated into the KTJ development concept, a move expected to lower operational costs by eliminating charter payments and extending field life.
Resource Upside and Exploration
The KTJ Project has certified gross contingent resources of 25.5 MMbbl (2C), as verified by RISC Advisory.
There is also potential upside from the Krill and Squilla discoveries.
2025 seismic reprocessing showed significant gross rock volume increases at Krill (+60%) and Squilla (+243%), indicating further exploration potential.
Finder also holds exploration potential in the UK North Sea and Australia, further diversifying its portfolio.
Strategic Collaboration and Project Momentum
Finder Energy's LOI with SundaGas marks a strategic move to reduce costs for upcoming drilling in Timor-Leste.
This, combined with significant progress on the KTJ Project's development milestones, de-risks execution and moves the company closer to production.
Financing and regulatory approvals remain key watch points.
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