(Alliance News) - Arrow Exploration Corp shares surged on Wednesday, after the company said results at its first Ubaque horizontal well were "exceeding expectations".

Arrow Exploration shares were up 16% to 23.20 pence each in London on Wednesday afternoon.

In May, the Colombian-focused oil and gas exploration firm initiated a horizontal drill programme at the Ubaque formation in the Llabis Basin.

At the time, Chief Executive Officer Marshall Abbott said it was a "significant milestone" which would determine whether the reservoir "could be developed most efficiently using horizontal drilling technologies".

Arrow Exploration holds a 50% interest in the Carrizales Norte field on the Tapir Block in the Llabis Basin where the first of four planned horizontal wells has been put on production.

On Wednesday, Arrow said results revealed a current flow rate of 3,150 barrels of oil per day, 1,575 bopd net to arrow, ahead of expectations.

It should be noted, the firm cautioned, that initial flows are not always indicative of future long-term performance or ultimate recovery. A stabilised production rate will be determined in the first few weeks of operations.

"The initial success of the first horizontal well... is an important milestone in the development of 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," Abbott said.

Elsewhere, the company's Morsa 1 well in the Oso Pardo field has returned to production following a downhole equipment failure adding 75 net bopd.

The Capella field, which produces 230 bopd, remains shut while a third party operator assesses plans to restart the field.

Meanwhile, low gas prices in Canada have forced the temporary closure of the East and West Pepper wells at a cost of 250 net barrels of oil equivalent per day.

By Elijah Dale, Alliance News reporter

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