Situation: Small oil well pumps cannot sufficiently lift oil out of the ground when the specific gravity of the oil falls below 14 and/or the well is not steamed.
Plan of Action: Develop a downhole pump mechanism that is positive placement in nature and is capable of lifting “heavy crude” oil out of the ground. In addition, the pump would have to cost less to work over.
Results: In the span of four months, we developed a helical screw downhole pump utilizing existing technology for surface applications (in a horizontal plane) and applying that to a vertical plane (downhole). The results were:
- The initial cost of the pump was less than half of any competitor in the market.
- The cost of “workover” was similar to the competitor but the pump lasted twice as long as the competitor
- As a positive displacement pump, it would pump flow from the well and fluids with a specific gravity down to 12 without the benefit of steam.
- The wellhead could be hidden under a bush
- The R.O.I. was three times faster than conventional pumps.
- The company began making money in its fifth month.
- The company was profitable by its seventh month.
- The company and the rights to the pump were sold nine months after the company had started.