Mosman Oil and Gas Ltd (LON:MSMN) notified investors that the operator of the Falcon-1 well in East Texas has reported a recent increase in water production alongside a fall in pressure at the well.
To manage this, the wellhead choke size has now been reduced.
This has resulted in significantly lower reported oil and gas production rates at Falcon-1, in which the AIM-listed company has a 50% working interest.
The well operator has indicated that it intends to run downhole logs to gather more information in order to recommend an appropriate course of action, Mosman said.
Falcon-1 returned to gas and oil production on 21 February after freezing weather conditions in the state earlier in the month.