Jadestone Energy has begun production at well EBA-18ST3, the first of its 2026 infill drilling campaign in Malaysia, with an approximate flow rate of 3,000 barrels of oil per day. The well is part of the PM323 production-sharing contract and is intended to bolster the company’s production at the East Belumut field.
Furthermore, the result comes with a significant operational signal: the well was drilled nearly 20% below budget. For an offshore campaign, this margin is important because it combines cost control, technical execution, and better utilization of the drilling program.
A long well for East Belumut
The EBA-18ST3 reached a total measured depth of 4,866 meters and incorporated a horizontal section of 1,200 meters into the reservoir. With these figures, it becomes the longest well drilled to date in East Belumut.
Likewise, the initial performance of the well allowed Jadestone to confirm the third well of the campaign, which had previously been contingent on results. The decision was based on the production from the first well and the subsurface data obtained during the drilling of the second.
The PM323 campaign adds a third well
The drilling campaign in Malaysia included two firm wells and a third contingent well; the latter is oriented towards the southwest extension of East Belumut, an area identified during the 2023 infill drilling program.
Meanwhile, Jadestone maintains its 2026 capital expenditure guidance unchanged, estimated at between $50 million and $80 million. The company also indicated that it expects to update the market on the second well of the campaign in the near future.
More production for the Asia-Pacific portfolio
Jadestone Energy is an independent exploration and production company focused on the Asia-Pacific region, with assets in Australia, Malaysia, Indonesia, and Vietnam. Its strategy combines organic growth, development of mature assets, and acquisitions within a controlled financial framework.
Furthermore, the commercial context also favors the start-up of the well; the company noted that its recent oil sales in Malaysia obtained a premium of $14 per barrel over Brent, which improves the economic attractiveness of the incremental production.
Source: Jadestone-energy
Photo: Shutterstock
