Finder’s Timor-Leste oil imaging exceeds expectations

Finder Energy’s 3D reprocessing surpassed expectations as it continues its investigation of large Timor-Leste oil fields.

The program is only 66% complete but is already cause for excitement. Pic: Getty Images

• Finder’s ongoing 3D reprocessing over Timor-Leste oil fields surpasses expectations

• Work is geared to position wells for optimised production and de-risk exploration targets

• Asia set to fuel oil demand growth with FDR looking at first production as soon as 2027

 

Special Report: Finder Energy’s imaging results have surpassed expectations as it continues investigating the development of large-scale oil fields offshore Timor-Leste.

Finder Energy (ASX:FDR) is undertaking an Ilkan 3D reprocessing program to position development wells for optimised production in Kuda Tasi and Jahal fields which currently host a gross 2C contingent resource of 22MMbbl oil.

The program is also directed at re-evaluating the resource potential of the discovered Krill and Squilla oil fields and de-risking high value exploration targets for drilling.

It is now two thirds complete and on track to finish this quarter, but Finder already seems impressed at the returns.

“The current reprocessing results exceed our expectations and we are keeping to a tight schedule,” Finder technical director Shane Westlake said.

“We are very excited to finish this project, finalise the Kuda Tasi and Jahal development well locations and high grade the other discovered oil fields and exploration targets.”

Data is expected to demonstrate the greatest improvement under reefs and in shallower areas under Krill and Squilla, where solving image uncertainties will redefine resource potential and optimise targets for appraisal.

Acquiring oil

Finder became the proud owner of 34 million net barrels of discovered oil with its 76% acquisition of the four oil fields comprising licence PSC 19-11 last year.

Despite significant work already going into the asset, Finder snapped up its low-cost entry with just US$2m up front, US$6.5m on a final investment decision, and a 5% royalty on production.

And it looks to be speeding towards that decision by leveraging that enormous amount of work sunk in by previous operators.

The discovered fields are ready for development and only require more geological work to de-risk the sub-surface reservoir models, and MST Access at least considered it a potentially transformational acquisition which could yield first production by 2027.

The Krill and Squilla fields will require more work, but Finder is confident they offer more low-risk appraisal opportunities and significant potential to add up more barrels.

Asiatic energy

China’s crude imports might have declined, but that doesn’t detract from expectations the rest of Asia will fuel the oil sector’s demand growth in coming years.

While pursuit of net zero targets might have created investment headwinds in the West, the world has never needed more oil, and Finder found a more welcoming home in a developing nation.

“For Timor-Leste, it is critical for their future to develop their natural resources including oil and particularly their large gas resources,” Finder managing director Damon Neaves told Stockhead.

“We are seeing a much more supportive government, and it is allowing us to get things done without the red tape, bureaucracy and activism that has been particularly prevalent in Australia and the UK.”

Finder is looking for a funding partner to get to production, and believes the work being done to high-grade its prospects could increase the value and funding from a potential ally.

To that end, the company has also appointed long-standing permit manager Paula Kane as joint company secretary to recognise her growing responsibility for governance, reporting, and work across the organisation.

This article was developed in collaboration with Finder Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.