Economics for a Gas Bailer Valves Purchase at $60 per barrel!

Midland, Texas

The Problem

A major oil company was looking to increase production and reduce pulling and pump repair costs as a result of tapping bottom. Pumps were being pulled every 8 months as a result of the practice of tapping bottom.

  • Oil production averaged 69 bbls/day,
  • Gas 44 mcdf

Solution

  1. In November 2013, a 1 1/4” insert Pump along with Conn Gas Bailer was run.
  2. The pump was spaced so as to prevent “tapping bottom”.

Conn Pumps Bailer Gas Valve

Job Postmortem

After installing the Gas Bailer and for a four month period:

  • Oil production went from 69 bbls/day to 85 a 23 % increase of 16 bbls/day
  • Gas from 44 to 51 mcfd

Using oil at $ 60 per barrel and a daily increase of 16 bbls per day that worked out to a $ 960 per day or $ 350,400 yearly increase in gross revenue, and if the pulling cost & pump repair costs are factored in as being reduced from every 8 months to 16 months, then the daily increase goes up to $ 1,019 per day.

Payout of the cost of the valve was 1.88 days.

Pump changes and tubing leaks should drop due to the smoother loading and unloading of the valves in the pump, and the elimination of tapping bottom will reduce rod slap leading to tubing leaks.