Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) jumped 15% after the Colombia-focused oil group reported that its first horizontal well on the Carrizales Norte prospect was flowing ahead of expectations.
The new well, CNB HZ-1, is flowing at a restricted rate of 3,150 barrels a day gross and 1,575 net to Arrow with less than 1% water cut while still recovering load fluid, it said.
Arrow said it would take a few weeks for production to settle down but the early results were an important milestone in developing the hydrocarbon-dense Ubaque formation.
“The horizontal technology proven by this well can now be used to exploit further prospects on the Tapir block, and potentially the Oso Pardo block," said the statement.
Significant progress had also been made in water disposal, Arrow added, with the RCE-1 water disposal well now operational and the conversion of the CN-4 well to a water disposal well ongoing.
Shares rose 3p to 23p