Jennings Capital reiterated its "speculative buy" recommendation for Petroamerica Oil Corp (CVE:PTA) on Friday, and boosted its price target for the Colombian-focused company to 45 cents from 35 cents previously. 

Shares in Petroamerica rose more than 9%, or 2.5 cents, to 29.5 cents on Friday afternoon. 

Jennings' analyst James Humen says that the Las Maracas-5 well continues to impress, as it tested at a maximum rate of 3,762 barrels per day (bbl/d) gross from the middle Gacheta sand, only on natural flow over a 13-hour period. The middle Gacheta is the same formation from which Las Maracas-3 and 4 produce. 

Water cut at the end of the latest test was 0.1%. The well had to be choked back due to capacity limitations at the well site

Earlier this week, Petroamerica announced results for the new lower Gacheta of Las Maracas-5, testing 635 bbl/d gross on natural flow over a 20-hour period. 

The analyst also notes continued production additions. October production was 2,468 bbl/d net after royalties, not including production from Las Maracas-5. 

With Las Maracas-5 and 6 yet to be drilled, Humen expects Petroamerica to "easily exceed its exit guidance of 3,000 bbl/d."

The capital markets firm changed its estimates for the oil producer, incorporating production from the Las Maracas-5 well based on initial results, at a reduced rate of 2,000 bbl/d gross versus its "previously risked rate" of 1,050 bbl/d gross. 

Jennings also added a four-well Las Maracas drilling program to its 2013 production forecast for the company, increasing its 2012 and 2013 production guidance by 4% and 48%, respectively

It now expects production of 1,109 barrels of oil equivalent per day (boe/d) for this year, compared to 1,068 boe/d previously, and 3,859 boe/d for 2013, versus its prior forecast of 2,607 boe/d. 

The increase in estimates also resulted to a boost in Jennings' 2012 and 2013 cash flow forecast of 2% and 68%, respectively. Humen says there is still additional upside to its Las Maracas production forecast

Catalysts for Petroamerica's share price include additional testing at the La Casona-1 exploration well, and the El Porton Curirara-1 exploration well, among otheres.

Petroamerica Oil Corp. is focused on light/medium oil in Colombia. The company has assembled a large portfolio of prospective oil properties in the Llanos basin, and is joint ventured on some of these properties with established producers in the country.