(10) PRODUCTION OPTIMIZATION THE BALANCE-PORTED VALVE IN THE PERMIAN BASIN

The balance-ported valve is a gas-lift valve that allows full, available gas injection pressure to be used for the unloading and operating valves.  Using full injection pressure allows for a deeper point of gas injection, which lowers the FBHP, thereby increasing total production.  With standard IPO valves, it is necessary to design the valves with casing pressure drops in order to close the valves as the injection point moves deeper.  The balance-ported valve is configured such that no design casing pressure drops are required for closing.  The pilot valve can be utilized later in the life of the well, once the injection point is at the bottom valve and the well is producing less than 150 BFPD.  The pilot valve controls injection into the well in self-intermitting cycles, allowing the well to feed in between these cycles. This allows for lower gas injection rates and increased production.