Buying a New ESP from Extract Can Pay Off Better than Leasing

Paul Wiseman

Buying a New ESP from Extract Can Pay Off Better than Leasing

Reliable ESPs, dependable service from experts and clearly defined investment are the keys.

Upon completing a new well, the first question is how to start realizing a return on that increasingly major investment quickly. What kind of pump decisions will let you maximize production while minimizing overhead? Here are the most important things to consider.

Upfront Capex (Buying from Extract) vs Spreading out Opex (Leasing)

There are two main drawbacks to the second choice. First is that a leased pump is rarely new. It’s most often one that has been removed from a length of service that will vary. It could be one that’s been in the field for months. It may or may not have been cleaned or refurbished. And it may be one that the leasing company needed to get back into use rather than one that’s been chosen to maximize that specific well’s production.

For that reason, a leased pump is at great risk of an early failure. A failure costs you in two ways. There’s no revenue inflow from an unproductive well while the pump is being replaced. At the same time, there’s the outflow of money for the pulling unit and the people to operate it. This does not maximize your production.

The second challenge with leasing is that, even if the pump is reliable, you keep paying for it as long as you use it. You could pay for it two or three times over. In that scenario, it has actually cost more than a purchase, which delays your well’s ROI.

Other hidden costs may be involved. Most leases involve an up-front payment before the monthly billing begins. Then when the pump is pulled, you may also owe money for any repairs.  

The Advantages of Buying from Extract

Buying a pump from Extract has several advantages because it will always be brand new. Our team of experts will suggest the pump and the system design to maximize your well’s production while respecting its parameters.

But, you might ask, if we purchase the pump, will Extract still monitor it and help us when we need it?

Yes! Extract’s knowledgeable team continues to monitor the pump throughout its run life. They’ll alert you if the well’s production changes or if adjustments in the pump parameters are needed. You can make fast, accurate decisions on ways to keep your well performing at its best over the long haul.

You can be sure we’re on call every time and any time you need service or advice. Questions operate outside the time clock, and so do we. You’ll see or hear from a trained and concerned Extract representative.

You’ll pay for it just once. Extract offers a one-year warranty, covering clearly defined repairs. You will understand your investment up front. And because you own it, should the pump no longer match the needs of its original well, Extract’s team can help you repurpose your pump for a smaller well or another appropriate installation.

We’re On Your Side

At Extract, we are a team. Your team. We put our years of ESP expertise to work on every well that has one of our pumps. You can be sure we’ll help you maximize your assets all along the way.

Still mulling the decision? Contact us here. We’ll be glad to discuss the options with you.

© Copyright 2023 Extract