Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) has delivered another strong operational update, with Zeus Capital flagging the results from the M-H7 horizontal well at the Mateguafa Attic discovery in Colombia as a meaningful boost to production and cash flow momentum.
According to the broker, 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 water cut of just 4%.
Zeus described the outcome as particularly encouraging for Arrow’s first horizontal well at Mateguafa Attic, noting that comparable horizontal wells on the Tapir licence have historically delivered payback periods of as little as three months, underscoring the project’s strong economics.
Performance across the broader Mateguafa area was also characterised 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 to production at rates above its initial test levels.
As a result, Arrow’s net output has already increased to around 4,500 barrels of oil equivalent per day, up from roughly 4,000 boe/d in mid-November, with further upside anticipated once M-5 resumes production.
Zeus reiterated its positive stance on the company, highlighting a busy drilling and exploration programme planned for 2026, including activity at Icaco. The broker maintained its ‘Buy’ recommendation and 35p price target, citing Arrow’s growing low-decline production base and strong cash flow generation.
