Arrow Exploration Corp (TSX-V:AXL, AIM:AXL, OTC:CSTPF) the Calgary-based oil producer focused on Colombia, has successfully drilled and brought into production a new well at its Mateguafa Attic field, adding to output at one of its most productive sites.

The Mateguafa 11 well, known as M-11, was spud (drilling began) on March 9 and reached its target depth within six days, completing ahead of schedule and under budget.

Arrow put the well on production on March 22 in the Carbonera C7 formation, a sandstone reservoir layer sitting roughly 9,300 feet below the surface.

The well is currently producing at a restricted rate of approximately 784 barrels of oil per day (BOPD) gross, equivalent to 392 BOPD net to Arrow, which holds a 50% beneficial interest in the Tapir Block where the field is located.

Arrow is deliberately constraining the flow rate while it assesses the well's long-term potential, and management said testing results indicate the well is capable of higher output.

The oil quality is 31.5 degrees API, a measure of crude density where higher numbers indicate lighter, more commercially valuable oil, and the water cut (the proportion of produced liquid that is water rather than oil) currently stands at 25%.

The M-11 well also encountered around 30 feet of net oil pay in a deeper formation, the Carbonera C9, which Arrow plans to test through future wells.

The Mateguafa pad now has six wells in production, generating a combined gross rate of approximately 5,478 BOPD, pushing Arrow's total corporate output to around 5,475 barrels of oil equivalent per day.

A seventh well, M-HZ12, a horizontal drill designed to maximise contact with the reservoir rock, was spud on March 27 and is expected to come on stream in April.

After M-HZ12, Arrow plans to move its rig to the newly completed Icaco pad to drill an exploration well, expected to spud in May.

Separately, Arrow secured approval from Colombian regulators to exit its COR-39 exploration contract, removing a $12 million drilling commitment at no financial penalty to the company.

Arrow held a cash balance of $6.4 million as of March 1, with no debt on its balance sheet.