An operator has a gas well that is loading up with water and requires an artificial lift system. Option 1 is to install a plunger lift system at a cost of $15,000 with an increase in production of 100 Mcf/day for a one-year period. Option 2 is to install a rod pump unit which will remove more water and result in a higher drawdown. In this case the production will increase 200 Mcf/day for one year, but the pump cost is $135,000. Which option would you select if gas price is $3.85/Mscf and how much profit is made? Assume the interest rate is 5% An operator has a gas well that is loading up with water and requires an artificial lift system. Option 1 is to install a plunger lift system at a cost of $15,000 with an increase in production of 100 Mcf/day for a one-year period. Option 2 is to install a rod pump unit which will remove more water and result in a higher drawdown. In this case the production will increase 200 Mcf/day for one year, but the pump cost is $135,000. Which option would you select if gas price is $3.85/Mscf and how much profit is made? Assume the interest rate is 5%