Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has delivered another strong operational update, with Zeus Capital highlighting the successful result from the company’s M-H7 horizontal well at the Mateguafa Attic discovery in Colombia as a material positive for production and cash flow momentum.
The broker notes that M-H7 intersected an unusually long 4,053 feet of horizontal oil pay in the C9 formation and has already been brought onstream at a restricted gross rate of 1,694 barrels per day, with a low 4% water cut.
Zeus describes this as an encouraging outcome for Arrow’s first horizontal well at Mateguafa Attic, underlining the proven economics of similar horizontal wells on the Tapir licence, which have historically paid back in as little as three months.
Performance across the wider Mateguafa area is also described as robust. The M-6 well is showing a low decline profile, while the M-5 well, currently shut in for pressure testing, is expected to return at rates ahead of initial test levels.
As a result, Arrow’s net production has already risen to around 4,500 barrels of oil equivalent per day, up from 4,000 boe/d in mid-November, with further upside once M-5 resumes.
Zeus reiterates its positive outlook, pointing to a busy 2026 drilling programme and exploration catalysts ahead, including Icaco.
The broker maintains its 'Buy' recommendation and 35p target price, seeing Arrow as steadily building a low-decline production base with strong cash flow support.