Jadestone Energy (AIM:JSE), an Asia-Pacific focused upstream oil producer, has brought the first well of its 2026 Malaysia infill drilling campaign online at approximately 3,000 barrels of oil per day, and confirmed a previously contingent third well will now be drilled.
The campaign targets the southwest extension of the East Belumut field on the PM323 production sharing contract, a prospect identified during the 2023 infill programme.
Well EBA-18ST3 was drilled roughly 20% under budget despite featuring a 1,200-metre horizontal reservoir section at a total measured depth of 4,866 metres, the longest well yet drilled on the East Belumut field.
The original campaign comprised two firm wells and one contingent well. The third has now been confirmed and drilling has commenced, while full-year capital expenditure guidance of $50 million to $80 million remains unchanged.
Chief Executive T. Mitch Little said the result "will significantly increase our Malaysia production in the near-term against the backdrop of strengthened Brent oil prices," noting the company's most recent Malaysia oil sales attracted a $14 per barrel premium to Brent.
An update on the second well in the campaign is expected shortly.
