Finder Energy (ASX: FDR) has moved to fast-track development of its Kuda Tasi–Jahal oil project offshore Timor-Leste after securing an agreement to acquire the Petrojarl I floating production, storage and offloading vessel for US$15 million. The transaction is paired with a A$25 million institutional placement to fund vessel acquisition, integration work and project engineering ahead of a planned mid-2026 final investment decision.
The vessel acquisition and equity raising collectively form a foundational step in Finder’s transition from explorer to near-term oil producer, with first oil targeted by late 2027.
Acquisition Terms and Funding Structure
Finder will acquire the Petrojarl I through a combined cash-and-equity structure. The company will pay US$6 million in cash, including US$3.5 million at completion in December and US$2.5 million once a fully approved, unconditional FID is reached. The remaining US$9 million component will be issued as 37,233,008 Finder shares, priced at A$0.37 per share.
Finder has also previously paid approximately US$2 million to Amplus Energy for FEED support and exclusivity during due diligence. If the equity component of the consideration is not issued by the longstop date, Finder must either issue the shares within twenty business days or pay US$9 million in cash. A failure to meet those obligations would allow Amplus to reclaim ownership of the vessel and receive an additional transition payment.
Amplus will also gain a board seat through the appointment of Managing Director Steve Gardyne as a non-executive director once the share consideration is issued.
Placement Details and Capital Allocation
The company secured binding commitments for a two-tranche placement comprising approximately 67.6 million new shares at A$0.37 each, representing an 18.1% discount to the 15-day volume-weighted average price. Tranche One issues 53.5 million shares under Finder’s Listing Rule 7.1 capacity, while Tranche Two issues 14.1 million shares subject to shareholder approval at a January 2026 extraordinary general meeting.
The placement was jointly led by Barrenjoey and Canaccord, with JP Equity Partners acting as co-manager. Finder’s largest shareholder, Longreach Capital, committed A$5 million, also subject to shareholder approval.
Total capital available to fund the next phase of the KTJ project stands at A$30.9 million, including placement proceeds and existing cash. Uses of funds include vessel acquisition and holding costs, long-lead procurement, acceleration of front-end engineering and design, and general corporate expenditure.
Why Finder Is Buying the FPSO Outright?
The Petrojarl I is a redeployable FPSO with an extensive track record, having operated on 11 different projects across multiple jurisdictions, including Norway, the United Kingdom and Brazil. During its most recent deployment at Brazil’s Atlanta heavy-oil field, the vessel achieved 98% uptime over six years and produced more than 30 million barrels from three wells in deeper water and heavier crude conditions than those expected at KTJ.
Its processing capability of 25,000–30,000 barrels per day, storage capacity of 180,000 barrels, and compliance with DNV class standards make it compatible with Finder’s planned three-well subsea development.
Ownership provides a major cost advantage. Bareboat charters for smaller FPSOs in Southeast Asia typically range from US$60,000 to US$200,000 per day. Even at the lower end, seven years of chartering would exceed US$150 million in operating expenditure. Owning the vessel also extends the economic cutoff point for the field, potentially adding 2–3 million barrels of recoverable production and enabling future tie-backs, including the Krill and Squilla discoveries.
Vessel Integration and Project Timeline
The vessel is currently warm-stacked in the Canary Islands, where baseline surveys, engineering assessments and pre-FEED planning are underway. More than 400 technical surveys are being completed to define the shipyard scope for life-extension, topside modifications and mooring system upgrades.
Finder expects to integrate the vessel into the KTJ development plan during FEED, enabling a firm FID by mid-2026. First oil is targeted for the end of 2027, subject to vessel readiness and regulatory approvals.
CEO Damon Neaves said: “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.”
The company is also progressing debt-financing discussions, supported by its partnership with Barrenjoey, as it works to finalise the capital structure required for full project sanction.
