Under the circumstance you've described, the output from your program should be written to the same directory where your project was saved. I'm not exactly sure about some of the details you've described, though. A few questions:
1. Are you working with a project? If you add your Fortran files to a project and save said project, the working directory whenever the resulting executable is run from Simply Fortran should be the directory in which the project was saved. This directory is not necessarily the same as the directory where your Fortran source code is saved.
2. I'm not sure what you mean when you say "the code stopped updating at execution termination." Are you saying that the program you wrote is no longer generating output like you expected?
3. The "TEST" file you opened: did you open it with Simply Fortran, or are you saying you opened it from you Fortran code that you authored?
I can't yet explain exactly what's occurring in your situation. However, I'm sure we can figure out what's going on.
Jeff Armstrong
Approximatrix, LLC