Finder Energy (ASX:FDR) advances KTJ development pathway with Petrojarl I acquisition and A$25m institutional placement

Finder Energy has strengthened the development trajectory of the KTJ Project through the acquisition of the Petrojarl I FPSO and the completion of a A$25m institutional placement, marking a decisive advancement in its strategy to accelerate the transition from explorer to developer.

The acquisition secures control over the project’s core production infrastructure, enhances economic and scheduling certainty and positions the company to progress front end engineering and design activities with greater precision and confidence.

Against this backdrop, Chief Executive Officer Damon Neaves has addressed key investor questions to provide clarity around the strategic rationale, due diligence outcomes and funding structure that underpin this next phase of project execution.

“Securing the Petrojarl I is a significant step towards the realisation of the KTJ Project. She is widely considered the most redeployable FPSO in the world and comes equipped with adaptable production systems, offering a cost effective solution for the KTJ Project that streamlines delivery of our acceleration strategy.”

How does acquiring the Petrojarl I (PJI) materially de risk and accelerate the KTJ Project timeline?

Acquiring the PJI gives Finder immediate control over the core production infrastructure required for KTJ, which is a critical advantage in offshore development because it removes the uncertainty and potential delays associated with securing a leased FPSO or negotiating long term charter arrangements.

The vessel is fully classed with DNV, maintained in warm stack condition and located in a shipyard in the Canary Islands, enabling engineering, regulatory work and vessel integration studies to progress without delay.

The PJI has a proven operating history, having been deployed to 11 separate projects including in highly regulated jurisdictions such as Norway and the United Kingdom.

Its most recent deployment to the Atlanta Field offshore Brazil demonstrated strong technical performance and operational reliability, achieving 98% uptime over a six year period in 1,500m water depth while processing 14 API heavy oil, making it a far more challenging deployment than the KTJ Project.

Because the vessel is already incorporated into the company’s FEED program, including detailed surveys, turret and mooring system reviews, topsides engineering and regulatory assessments, Finder is positioned to advance the development pathway efficiently and maintain its target of FID by mid 2026 and first oil by year end 2027.

What are the economic advantages of owning the FPSO rather than leasing one for the KTJ Project?

The financial rationale for ownership is compelling, particularly when measured against the long term costs associated with leasing.

Bare boat charter rates for smaller FPSOs in Southeast Asia typically range from US$60,000 to US$200,000 per day, meaning that even at the lowest end of the range a seven year project could face more than US$150m in opex solely from charter payments.

By contrast, the PJI acquisition cost is US$15m, comprising US$6m in cash and Finder shares valued at US$9m, which removes recurring lease obligations and provides the company with a more competitive operating cost structure throughout the life of the KTJ Project.

Lower operating expenditure improves project economics by reducing the economic cut off point, enabling the recovery of an estimated additional 2 to 3 MMbbl.

Ownership also allows Finder to assess future opportunities for tie backs or develoments involving the Krill and Squilla discoveries and other near field prospects.

To reinforce the strategic dimension of ownership, Neaves noted:

“Ownership of the PJI is expected to deliver both capex and opex savings and has potential to unlock future development opportunities which include the Krill and Squilla oil discoveries and several near field tie back exploration prospects.”

Collectively, these advantages make the development more resilient and support the company’s plans to secure debt financing for future capex.

What due diligence was conducted to confirm the Petrojarl I’s suitability for redeployment to KTJ?

Finder undertook a rigorous due diligence process supported by ABL Group, which provided independent marine, shipping and process expertise.

The assessment began with a global review of available FPSOs, followed by the development of a selection framework aligned with KTJ’s technical and regulatory requirements. From this review, the PJI was shortlisted due to its compatibility with the project and its track record across multiple deployments.

The company conducted inspections both offshore and in shipyard conditions.

While the vessel was still operating at the Atlanta Field, Finder and ABL assessed its performance, maintenance history and compliance with environmental and safety requirements.

A subsequent inspection in the Canary Islands shipyard evaluated the vessel’s technical condition, the scope of required life extension work and the modifications necessary for redeployment of up to ten years.

Alongside these site visits, the company initiated 427 onboard surveys across all major vessel systems, with 89% now complete. These surveys corroborated the vessel’s strong maintenance record and confirmed that it is well suited for redeployment.

The ASX release also highlights the vessel’s capability in the field:

“During this deployment, the PJI produced over 30 MMbbl from 3 wells over a 6 year period providing a high level of confidence in her suitability and capability for the KTJ Project.”

The results of this due diligence process confirmed that the PJI meets the company’s technical criteria and supports the acceleration strategy.

How is the A$25m equity placement structured and what will the funds be used for?

The placement raised A$25m before costs at A$0.37 per share, structured in two tranches to align with Listing Rule requirements.

Tranche 1 involves the issue of approximately 53.5m shares under the company’s existing placement capacity, while Tranche 2 comprises approximately 14.1m shares subject to shareholder approval at the Extraordinary General Meeting scheduled for January 2026.

The funds have been allocated across three core areas: approximately A$15.1m for the PJI, including acquisition costs, holding and maintenance costs; approximately A$10.3m for FEED acceleration activities, including engineering work, risk analysis and the identification of long lead items; and approximately A$5.5m for working capital and general corporate costs.

The placement was strongly supported by institutional, professional and sophisticated investors. Finder’s largest shareholder, Longreach Capital Investment Pty Ltd, has committed A$5m, subject to shareholder approval, and the company’s directors intend to participate for a combined A$205,000. This funding ensures Finder is fully financed to progress KTJ through to FID.

How will the partnership with Amplus Energy strengthen execution during FEED, construction and production?

Amplus Energy brings extensive operational expertise and familiarity with the PJI, which strengthens project execution across all stages of the KTJ development.

Subject to joint venture and regulatory approvals, Amplus will support FEED by contributing engineering and integration services, including vessel surveys, topsides engineering, revised deck layouts, mooring system design, turret assessments and schedule risk analysis.

During the execution phase, Amplus will oversee shipyard work, including life extension activities and the modifications necessary for redeployment.

In the production phase, Amplus will provide operations and maintenance services supported by established safety and operational management systems.

The partnership is further strengthened at board level, with the appointment of Amplus Managing Director, Steve Gardyne, as a non executive director upon completion of the share consideration under the SSA.

This alignment ensures consistent technical oversight, seamless vessel integration and operational continuity throughout the project lifecycle.

Executive outlook

“Following completion of the equity raise, we will be fully funded to execute our acceleration strategy to FID. We are pleased to welcome new institutional investors onto the register, reflecting the Company’s evolution to a developer and producer.”

The acquisition of the PJI and the successful completion of the A$25m placement place Finder Energy in a strong position to advance the KTJ Project with enhanced clarity, improved economics and strengthened execution capability.

As the company finalises FEED and moves towards its FID target, it remains focused on disciplined delivery, sound governance and transparent engagement with shareholders.

Finder will continue to provide updates as the project progresses.

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