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Case Study

PROBLEM
Corrosion and scaling were causing frequent failures, lost production and high operating costs with conventional rod pumping systems in this shallow Illinois basin oil well operated by Team Energy, LLC (Team). The well had a history of monthly rod, tubing and pump failures. This well was not profitable.

SOLUTION
Team personnel field-tested the NOJAK pumping system and found it minimized the negative effects of scaling, corrosion and wear. In January 2004, they replaced the rod pump with NOJAK pumping systems and the well immediately experienced lower overall operating costs and higher output as compared to the conventional pumping system they replaced.

CUSTOMER PROFILE
Team Energy, LLC, is an independent E&P company in Bridgeport, Illinois, that operated about 250 oil wells in Illinois and Indiana. Company president Dennis R. Swager is also the president of Swager & Associates, Ltd., an energy consulting business supplying geologic, engineering and operational management services.

PROBLEM SOLVED
Team was experiencing frequent pump failures, lost output and high operating costs on wells using conventional pumping equipment. In January 2004, while seeking ways to correct these problems, they field-tested the NOJAK pumping system on their most troublesome well, Mieure 13.

Team replaced the rod pumps on this well with a NOJAK pump and found it minimized the negative effects of scaling, corrosion and wear, and the well immediately experienced lower overall operating costs and higher output as compared to the conventional pumping system they replaced.

STATUS REPORT
In the Mieure 13 well, operational results have improved, and cash flow has increased by about $1,960/ month. It should be noted that the cost of oil was in the $35 to $45 per barrel range during this study. Thanks to significantly less downtime, average monthly production has increased by about 30 bbls of oil.

THE BOTTOM LINE
Frequent failures, lost output and high costs have been cut significantly by replacing conventional rod pumping with equipment from NOJAK Pumping Solutions. The NOJAK system reduced costs and boosted revenue in this Illinois stripper well.

FIELD REPORT
Mieure 13
Equipped with a rod pumping system at the time of the NOJAK test installation, Mieure 13 had a history of monthly rod, tubing and pump failures. This well was Team's most costly to operate, confirmed in an annual review by Nalco Energy Services. It was also the most problematic well. Since the installation in January 2004, the well has not been pulled.

Overview
Payout for installation in Mieure 13 was about three months.

Note: The price of oil was in the $35 to $45 range.
Note: This test was featured in "World Oil" magazine in Oct of 2005.