Petro Matad Limited (AIM:MATD, OTC:PRTDF) shares plummeted, losing around 30%, after it flagged that higher than expected gas rates had impacted oil flows in the Heron well, in Mongolia, and another well disappointed in testing.
The Heron-1 well, which began production on October 24, is being managed due to the elevated gas levels with production held between 200 to 300 barrels per day.
Under natural flow, in 2019 tests, the well previously flowed at 821 barrels per day.
Petro Matad said it is exploring the potential for increased stabilised production.
At the same time, it said that testing of the Heron-2 well has returned lower-than-expected flow rates, estimated at approximately 30 bpd, with oil and stimulation fluid present.
The well has been temporarily suspended, and data from the test will undergo further analysis to determine the next steps in its development.
In London, Petro Matad shares fell 28% to 1.8p.