AIM-listed and Singapore-headquartered oil and gas player Jadestone Energy has made significant strides in its infill drilling campaign off the coast of Malaysia, successfully bringing its first well into production. With the second well already drilled and operations underway at a third, the company is on an upward trajectory.
Jadestone Energy recently announced that their first well in the 2026 Malaysia infill drilling campaign on the PM323 production sharing contract (PSC) has been drilled and is now producing approximately 3,000 barrels of oil per day (bopd). This achievement is particularly noteworthy as the first well, labeled EBA-18ST3, was completed at around 20% below budget, illustrating effective cost management and operational expertise.
The EBA-18ST3 well features an extensive horizontal reservoir section of 1,200 meters, bringing the well’s total measured depth to 4,866 meters—making it the longest well ever drilled on the East Belumut field. This technical feat underscores Jadestone’s advanced capabilities in managing complex drilling operations.
T. Mitch Little, the Chief Executive Officer of Jadestone, expressed enthusiasm about the results, stating, “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.” Little further emphasized that this successful start significantly boosts their production in Malaysia, especially considering the recent uptick in Brent oil prices, with Jadestone’s oil sales fetching a premium of $14 per barrel over Brent.
The overall drilling campaign originally included plans for two firm wells and a third contingent well. The latter aims to explore the southwest extension of the East Belumut field, identified in the 2023 infill program. Due to the promising performance of the first well and the valuable subsurface data collected during the drilling of the second well, Jadestone has confirmed the drilling of the third well, which is currently in progress.
The company has maintained its 2026 capital expenditure guidance, which stands between $50-$80 million. To facilitate infill drilling activities at the East Belumut Phase 9 project, Jadestone has secured the services of Velesto’s NAGA 8 rig for a four-month period beginning in March. This strategic partnership demonstrates Jadestone’s commitment to operational efficiency and resource optimization.
Beyond the immediate successes at East Belumut, Little highlighted the broader context of the company’s growth: “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.” This forward momentum positions Jadestone for a prosperous future as it continues to embark on its strategic initiatives.
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