AIM-listed and Singapore-headquartered oil and gas player Jadestone Energy has made inroads in its infill drilling campaign off the coast of Malaysia by putting the first well into production mode, with the second already drilled and activities at the third now underway.
Jadestone Energy has disclosed that the first well in the 2026 Malaysia infill drilling campaign on the PM323 production sharing contract (PSC) was drilled and brought online at approximately 3,000 barrels of oil per day (bopd).
The first well in the 2026 campaign, EBA-18ST3, was drilled around 20% below budget, which the firm describes as an excellent result considering the 1,200 meter horizontal reservoir section in the well at a total measured depth of 4,866 meters, the longest of any well drilled to date on the East Belumut field.
T. Mitch Little, Chief Executive Officer of Jadestone, commented:“Our established operating capabilities in Malaysia, combined with our refreshed focus on operational excellence, have been further validated by the outcome of the EBA-18ST3 well.
“The result is an excellent start to this year’s drilling campaign and will significantly increase our Malaysia production in the near-term against the backdrop of strengthened Brent oil prices, with our most recent Malaysia oil sales attracting a US$14/bbl premium to Brent.”
The drilling campaign originally included two firm wells and a third contingent well targeting the southwest extension of the East Belumut field, which was identified in the 2023 infill program. Based on the strong performance of the first well and the subsurface data gathered during drilling of the second well, the third well has been confirmed, with drilling already ongoing.
The company’s 2026 capital expenditure guidance of $50-80 million remains unchanged. Jadestone booked Velesto’s NAGA 8 rig to support infill drilling activities at the East Belumut Phase 9 project for a period of four months, starting in March.
Little emphasized: “Following on from the significant progress on our Vietnam project earlier this year and the successful debt refinancing, this is further evidence of a business that is executing on its plan and strategy. We look forward to updating the market further on the second well in the campaign in the near-future.”
