Arrow Exploration Corp's (TSX-V:AXL, AIM:AXL, OTC:CSTPF) shares strengthened on Monday, in London and Canada, after the firm brought two new wells at its Mateguafa Attic field in Colombia onto production, as the AIM- and TSXV-listed group advances its development and appraisal programme on the Tapir Block in the Llanos Basin.
The Mateguafa-10 (M-10) well was drilled to 10,930 feet measured depth and brought online on 24 February in the Carbonera C7 formation, where Arrow reported around 27 feet of net oil pay.
Initial output was deliberately constrained at roughly 1,100 barrels of oil per day gross (about 550 bopd net), producing 31° API crude with a 6% water cut, and the company said early testing suggests the well can run at higher rates once restrictions are eased.
Meanwhile, the Mateguafa-9HZ (M-9HZ) well, which Arrow said is the longest horizontal well it has drilled in Colombia, reached total depth in early February and was put on stream on 10 February in the Carbonera C9.
It started at a restricted rate of about 850 bopd gross (425 bopd net) with 31° API oil and a 16% water cut, and the company is increasing pump frequency to encourage additional oil production along the horizontal interval.
Chief executive Marshall Abbott told investors the well results " reinforce the materiality of the Mateguafa field to Arrow".
"The initial discovery and development of Mateguafa demonstrate the resource-rich potential of the Tapir block and the experience of the professional team at Arrow to quickly unlock that potential," he said in Monday's statement.
"The initial development wells drilled at Mateguafa continue to produce at considerable rates with low decline, with significant further pay seen in formations to which Arrow plans to return at a later date."
The rig is now being prepared to convert the Mateguafa-8 well into a water disposal well to support field operations, before moving on to drill Mateguafa-11 and then an exploration well at the Icaco prospect, which Arrow expects to spud in April.
Marshall Abbott, meanwhile, added: "The Icaco prospect is one that has been developed by the Arrow team using both 2D seismic and, later, the more recently shot 3D seismic program.
"Management believes the Icaco prospect will also result in a material discovery for Arrow. We look forward to updating our shareholders on the progress at Icaco over the coming months."
In London,Arrow shares climbed 13.4% to 19p, whilst in Canada the price was 3% at 34 cents.