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From the late 1950s through 1972, N.A. Neely, father of Jerry and Richard Neely, was the owner and operator of Well Production Company, located in Farmington, New Mexico. He was a contract pumper and handled in excess of 100 wells in the San Juan Basin area. Mr. Neely was constantly looking for procedures or products, which would assist in increasing the gas and oil production in the wells he operated. He charted each well in order to understand their particular monthly production cycles and characteristics.

He knew that scale and paraffin reduced production in wells throughout the San Juan Basis area. He decided to develop a product to address this concern. Mr. Neely contacted numerous chemical companies and began what was to become a 5-year development program. He would describe the results he was seeking with various chemical companies. They would in turn ship him certain components to mix and test. There were few, if any EPA or hazardous chemical requirements in the 50s, so there was great latitude in chemical availability and use.

He began an extensive test program on his wells and was able to improve gas and oil production. Based on his initial success he extended the test program into Texas, Kansas and Oklahoma.

Mr. Neely died in 1989 in Tucson, Arizona. After his death, Mrs. Neely wanted to return to Farmington. She had slightly less than one barrel of the chemical in her garage. She contacted the Tucson Fire Department for assistance in disposing of the chemical. After completing several tests on the chemical, the fire department representatives told Mrs. Neely, It wont hurt anything, pour it down the drain. She retained five gallons and moved to Farmington in the summer of 1989.

In the spring of 1992, Mrs. Neely became terminally ill. She asked her sons to locate the chemical formula and production history. When prior clients were contacted, without exception, the comments were positive and they encouraged the sons to renew production. The general comment was, We have not seen anything like it since your father left Farmington.

The 20 year old product was tested with paraffin and scale samples from local wells. In laboratory tests the product dissolved the paraffin, dispersed scale and prevented corrosion of nails.

It was realized that some changes would have to be made due to current EPA requirements. New formulations of the product were made and tested to meet EPA standards. The results with the same paraffin and scale samples were positive when compared with previous tests. A contract laboratory assisted with the completion of a MSDS (Material Safety Data Sheet) document to ensure EPA compliance.

A major oil and gas company located in Farmington agreed to establish a test program on two wells with paraffin and scale problems. After a batch treatment (one drum of 54GO
followed with 30-40 barrels of heated water) oil and gas production increased in both wells. The company expanded the program due to the positive results. Additional information was needed, specifically technical information. Additional laboratory analysis was contracted in 1992. The company allowed their well samples to be used for these tests. In the spring of 1993, after testing, a commitment was received from the company to test 54GO in conjunction with hydraulic fracture stimulation of wells. Additional tests revealed the compatibility of 54GO with chemical provided by the service companies. The fracs were completed with positive results. In one particular well the onset of production decline did not occur until twice the time observed for a normal well in the same formation. This significantly increased the economic return for this stimulation job.

The patent process was started at this time, and a US Patent was granted in September of 1997.




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