Finder Energy seeks acquisition, operatorship of four fields offshore Timor-Leste
Finder Energy Holdings Ltd. has entered into conditional sale agreements with Eni International BV and Inpex Offshore Timor Leste Ltd. to acquire a 76% interest in, and operatorship of, PSC TL-SO-T 19-11 offshore Timor-Leste. The remaining 24% is held by state-owned TIMOR GAP.
The production sharing contract contains four discovered undeveloped oil fields.
In a release, Finder Energy noted the discovered resources and upside potential, including discovered and appraised Kuda Tasi and Jahal oil fields with combined 22 million bbl gross 2C contingent resources and the discovered Krill and Squilla oil fields with combined 23 million bbl gross 2C contingent resources.
The area holds the possibility of near-field exploration potential of 116 million bbl gross mean prospective resources, Finder Energy continued.
The company said it will seek a partner through a partial divestment process to help fund development (including preparation, definition, and execution phases) and unlock the upside through appraisal and/or exploration drilling.
The upfront acquisition cost is $2 million. Additional consideration of up to $6.5 million is contingent on reaching a final investment decision (FID) for development plus a 5% royalty on production.
For this deal, Finder Energy has entered into sale and purchase agreements with Eni and Inpex. The Eni SPA is structured as a share sale whereby Finder subsidiary Finder Operations Pty Ltd. will acquire all shares in Eni JPDA 11-106 BV, which holds a 40.53% working interest (and operatorship) of PSC 19-11. Under the Inpex agreement, Finder subsidiary Finder PSC 19-11 Pty Ltd. will acquire Inpex’s 35.47% underlying interest in PSC 19-11.
The agreements are subject to certain conditions including government and regulatory approvals and change of operatorship from Eni to Finder, and formal approval of the work program proposed by Finder and the corresponding 3-year extension production sharing contract to August 2027.
Finder anticipates the deal to close this month.
