Jadestone Energy has brought the first well of its 2026 Malaysia infill drilling campaign online at approximately 3,000 barrels of oil per day, the AIM-listed, Asia-Pacific-focused independent producer announced. The well, EBA-18ST3, targets the PM323 PSC and was completed roughly 20% under budget—an early result strong enough to prompt the company to confirm a third well in the campaign.
First well of 2026 campaign reaches 3,000 bopd
Well EBA-18ST3 is not just a production milestone — it is also a record for the East Belumut field. Featuring a 3,900-foot horizontal reservoir section at a total measured depth of 16,000 feet, it is the longest well drilled on the field to date. That technical achievement was delivered roughly 20% under budget, a combination pointing to both geological confidence and operational discipline.
Jadestone Energy is an AIM-listed independent upstream producer focused exclusively on the Asia-Pacific region. Its portfolio centers on production and development assets, and the PM323 PSC offshore Malaysia has been one of its core holdings. The 2026 infill drilling campaign on that block is a continued effort to extract additional value from an established producing asset.
Strong subsurface data triggers confirmation of third well
The 2026 Malaysia campaign was originally structured around two firm wells, with a third contingent well held in reserve. That contingent well targeted the southwest extension of the East Belumut field—a prospect first identified during Jadestone’s 2023 infill drilling program.
Moving the third well from contingent to confirmed rested on EBA-18ST3’s strong production performance and the subsurface data gathered while drilling the second well. Together, those inputs gave management enough confidence to commit and begin drilling. The addition of a third well has not altered the company’s financial framework—Jadestone’s 2026 capital expenditure guidance remains set at US$50–80 million, unchanged by the expanded scope.
Near-term production increase expected amid favorable oil prices
CEO T. Mitch Little described the first well result as “an excellent start” to the year’s drilling campaign, saying the outcome “will significantly increase our Malaysia production in the near-term.” That production uplift arrives against a backdrop the company considers favorable.
Jadestone’s most recent Malaysia oil sales attracted a premium of US$14 per barrel above Brent crude. Combined with what the company described as strengthened Brent prices, the timing of the campaign’s early output adds a clear commercial dimension to the operational success. Little also placed the drilling result within a broader strategic context, pointing to earlier progress on Jadestone’s Vietnam project and a successful debt refinancing as further evidence that the company is executing on its stated plan—a cumulative picture of momentum building across multiple fronts.
Background: Jadestone’s Malaysia operations and East Belumut Field
The PM323 PSC is located offshore Malaysia and has served as a cornerstone of Jadestone’s Asia-Pacific portfolio. East Belumut has been the focus of repeated infill drilling efforts, reflecting a strategy of maximizing recovery from existing producing assets rather than pursuing purely greenfield exploration.
The 2023 infill program was particularly significant in shaping the current campaign. It was during that earlier effort that the southwest extension of East Belumut was first identified as a viable target—an identification that led directly to the contingent third well being included in the 2026 campaign design and ultimately to its confirmation following EBA-18ST3’s performance. Jadestone is listed on the AIM market of the London Stock Exchange, and its operational track record in Malaysia has been central to its investment case.
The existing financial plan stands
The first well in Jadestone’s 2026 Malaysia infill drilling campaign exceeded expectations on several measures. EBA-18ST3 came online at approximately 3,000 barrels of oil per day, was completed around 20% under budget, and set a new horizontal reservoir section length record on the East Belumut field.
That performance, combined with data from the second well, was sufficient for management to confirm the previously contingent third well and begin drilling it. Full-year capital expenditure guidance of US$50–80 million remains unchanged, so the expanded campaign fits within the existing financial plan without revision.
Near-term production from Malaysia is expected to increase materially. A US$14 per barrel premium to Brent on recent oil sales adds a favorable pricing dimension to that volume growth, and Jadestone has indicated it will provide a further update on the second well in due course.
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