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# Installing Plunger Lift Systems In Gas Wells

## Exhibit 9: Economic Analysis of Plunger Lift Replacing a Beam Lift

Plunger Lift Maintenance

(\$1,300)

(\$1,300)

(\$1,300)

(\$1,300)

Electric Cost per Year

\$0

\$0

\$0

\$0

\$0

Year 0

Year 1

Year 2

Year 3

Year 4

Value of Gas from Increased Production and Avoided Emissionsa

\$51,114

\$51,114

\$51,114

\$51,114

\$1,300

\$1,300

, \$1 300

, \$1 300

\$1,000

\$1,000

\$1,000

\$1,000

\$13,200

\$13,200

\$13,200

\$13,200

Plunger Lift Equipment and Setup Cost

(\$7,772)

Salvage Value Beam Lift Equipment

Avoided Beam Lift Maintenance (1 workover/yr)

Avoided Beam Lift Electricity Costs (10HP motor)

\$21,300

\$13,528

\$65,314

\$65,314

\$65,314

\$65,314

## NPV (Net Present Value)b =

Payback Period =

a b

Gas valued at \$7.00 per Mcf for 7,300 Mcf due to increased production and 2 Mcf from avoided emissions per event (based on 1 workover per year). Net present value based on 10 percent discount rate over 5 years.

Year 0

Year 1

Year 2

Year 3

Year 4

Value of Gas from Increased Production and Avoided Emissionsa

\$51,268

\$51,268

\$51,268

\$51,268

(\$1,300)

(\$1,300)

(\$1,300)

(\$1,300)

\$0

\$0

\$0

\$0

\$13,200

\$13,200

\$13,200

\$13,200

## Exhibit 10: Economic Analysis of Plunger Lift Replacing Blowdown

Plunger Lift Equipment and Setup Cost

Plunger Lift Maintenance

Electric Cost per Year

Avoided Chemical Treatments

\$(7,772)

\$0

(\$7,772)

\$63,168

\$63,168

\$63,168

\$63,168

## NPV (Net Present Value)b =

Payback Period =

a b

Gas valued at \$7.00 per Mcf for 7,300 Mcf due to increased production and 24 Mcf from avoided emissions per event (based on 12 blowdowns per year and 2 Mcf per blowdown). Net present value based on 10 percent discount rate over 5 years.

Year 5

\$51,114

(\$1,300)

\$0

\$1,300

\$1,000

\$13,200

\$65,314

\$261,119

## Immediate

Year 5

\$51,268

(\$1,300)

\$0

\$13,200

\$63,168

\$231,684

2 months

8

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