Finder Energy's Transformational Acquisition in Timor-Leste - 18 September 2024
FDR (FDR) Share Update September 2024 Tuesday 17th
Finder Energy Announces Strategic Acquisition in Timor-Leste
Finder Energy Holdings Limited (ASX: FDR) has announced a significant acquisition of development-ready oil fields in Timor-Leste, poised to transform the company's portfolio and accelerate its path to first oil.
Instant Summary:
- Acquisition of development-ready oil fields in Timor-Leste.
- Low upfront entry cost of US$0.05 per barrel.
- High equity and operatorship with supportive government.
- Potential for high deliverability and strong cash flows.
- Multiple value creation pathways with innovative development solutions.
Acquisition Details
Finder Energy has strategically acquired development-ready oil fields in Timor-Leste, marking a significant milestone for the company. The acquisition includes two permits and six licenses, with a total of 45 million barrels of 2C contingent resources and 116 million barrels of Pmean prospective resources.
The fields are located in highly prospective areas, including the North West Shelf of Australia, PSC 19-11 in Timor-Leste, and the UK North Sea. This acquisition is expected to rapidly accelerate Finder Energy's path to first oil, leveraging the company's expertise and strategic partnerships.
Timor-Leste Acquisition Highlights
The acquisition in Timor-Leste is particularly noteworthy due to its low upfront entry cost of US$0.05 per barrel, high equity and operatorship, and supportive government environment. The fields boast excellent reservoirs, with the Kuda Tasi-2 flow test predicting production rates of over 20,000 barrels of oil per day for each well.
Finder Energy plans to implement innovative development solutions to reduce costs and accelerate the timeline to first oil. The company is also exploring equity partnerships within the industry to further enhance value creation opportunities.
Corporate Snapshot
As of 6 September 2024, Finder Energy has a market capitalization of $12.1 million and a share price of $0.05. The company has 242.6 million shares on issue and a net cash position of $7.1 million. The enterprise value (EV) stands at $5.0 million, with an EV per barrel of $0.11 AUD.
Strategic Drivers and Development Strategy
Finder Energy's strategic drivers include leveraging its subsurface knowledge and low-cost operational model to rapidly progress development. The company aims to achieve Final Investment Decision (FID) and first oil quickly and cost-effectively.
The development strategy for the Kuda Tasi and Jahal fields includes a conventional sub-sea Floating Production Storage and Offloading (FPSO) development comprising three development wells. The company is also evaluating near-field tie-back potential and a second development hub in the south of PSC 19-11.
The acquisition is expected to have a positive impact on Finder Energy's stock, as it significantly enhances the company's asset portfolio and accelerates its timeline to first oil. The low entry cost and high potential for strong cash flows make this a strategically sound investment.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the strategic nature of the acquisition and the potential for high deliverability and strong cash flows. The supportive government environment and innovative development solutions further bolster investor confidence.
Conclusion:
Investors should keep a close watch on Finder Energy's progress in developing the newly acquired oil fields in Timor-Leste. The company's strategic approach and potential for high returns make it a compelling investment opportunity. Subscribe to our newsletter for regular updates on Finder Energy and other stock market news.