Jadestone Energy has commenced production from the first well in its 2026 infill drilling campaign at the PM323 production sharing contract (PSC) offshore Peninsular Malaysia.
The EBA-18ST3 well was drilled around 20% below budget and is producing nearly 3,000 barrels of oil per day (bopd).
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The well reached a total measured depth of 4,866m, featuring a 1,200m horizontal reservoir section, the longest yet drilled at the East Belumut field.
Following the performance from the first new well, and after collecting data while drilling a second, Jadestone has decided to proceed with the third well.
The company stated that its 2026 capital expenditure guidance of $50m (S$64.83m)–80m remains unchanged.
The 2026 Malaysia drilling programme was originally set to include two firm wells and a third contingent well. The contingent well targeted the south-west extension of the East Belumut field, which emerged as a target during the 2023 infill programme.
Jadestone holds a 60% operated interest in the PM323 PSC, which covers the Chermingat, East Belumut and West Belumut fields, all located at roughly 72m of water depth in the Malay Basin. Petronas Carigali owns the remaining 40% interest.
Oil from the fields is transported by pipeline to an onshore terminal, while produced gas is reinjected to assist reservoir pressure.
Jadestone CEO T. Mitch Little said: “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 $14/bbl [barrel] premium to Brent.
“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.”
During an infill drilling programme that began in August 2023, Jadestone completed four wells on the East Belumut field, achieving first oil two months ahead of schedule.
This led to a fourfold increase in field production, with incremental gross output of nearly 8,000bopd and additional gross reserves of 4.2 million barrels (mbbl).
Jadestone reported average net production from the PM323 PSC of 3,484bopd in 2024. Net proven plus probable reserves as of 31 December 2024 stood at 4.3mbbl.
In April this year, Jadestone signed a gas sales and purchase agreement to supply gas from the Nam Du and U Minh fields offshore south-west Vietnam to PV Gas, a subsidiary of state-run Petrovietnam.
