Gas Lift Company Oil Field Service For Sale

Business description

This is a Gas Lift company with new, revolutionary patent pending technology. This company began marketing a full line of gas lift valve products in 2009. Included in their product offering is a new proprietary gas lift valve that uses a unique, new technology that was developed from years of research and experience in this industry. The new gas lift redirects injected gas upwards rather than the traditional “downward pressure” so that flow impeding eddies are not formed. This relieves the formation from injection pressures thereby eliminating major heading problems while simulating a well flowing on its own. The reduction in opposing pressures reduces costs by saving on the life of the whole system from the compressor to the separator. Also, by redirecting the injection gas upward along with the natural flow of the well, the ability to simulate a “dummy valve” using a live gas lift valve was recognized and taken advantage of. Dummy valves are installed in gas lift mandrels in order to prevent communication between the annulus and the tubing at the mandrel stage for various reasons. This new technology is the first of its kind and has proven to be successful in saving costs on dummies, latches and expensive wireline time. Problems that occur while changing out dummies with live gas lift valves are eliminated and most importantly, production comes on line quicker. The result is reduced production costs and increased overall oil production for the well. The design is used in onshore and offshore production wells.
In 2010, the company began testing their new gas lift in earnest with numerous wells owned by some of the major oil producers in the world. The result – substantial increases in overall oil production in all these test cases. The production increases have been at least 10% in every well, but in several wells, production increased by over 40%. One wells production was up by 100%. By the end of 2010, quarterly gross revenue has reached $300,000. The year 2011 has started quickly with eight (8) new wells committed to using the new valve lift.
Currently, patent attorneys have predicted full patent protection to occur during the year 2011. It is probable, they indicate, that the patents will be issued in the first half of the year. Additional isolated tests are currently scheduled and sponsored by a major oil producer at one of their “test well” sites. It should be noted that this company also owns additional proprietary valve lift technologies along with others in development.
The owners wish to sell the valve lift company with the new patented product. Their desire is to recoup a multiple on their original investment (excess of $1M) and continue to run the company for a new majority owner while maintaining some ownership or profit sharing arrangement so that they may profit from what they believe will be significant future growth. The owners realize that in order to fully penetrate the market and maintain patent protection, their company will need substantial financial backing from a larger entity. Perhaps this company’s greatest assets are their technological experience, knowledge of the industry and key relationships in the market. Their personnel are well known as industry experts and innovative industry leaders.

Property information

Real Estate:

Lease

Premises details:

$N/A

Other information

Reasons for selling:

Equity for Growth

Financing available:

Downpayment Required: $0