I always thought water was regularly produced with oil, you have to be very lucky to find a oil field with a thick reservoir where oil can be produced without some water cut eventually.
With water, you have to reduced the oil production rate to reduce the water cut. Too quick a flowrate and you can damage the reservoir and get all water.
But as you said, this is intial stages and to get water, 12% already, doesn't look good for high flow rates. .. but I suspect this is the price you pay in this region .. small price, just takes longer to produce.
Sand influx is a common problem and the use of filters generally solves it - sand influx is generally a indicator on good reservoir quality.
The previous rants was my observations only, after 20+ years following spec oilers .. i have no geological training .. just school of hard knocks! LOL!
Bg.
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