Abstract Coiled-Tubing (CT) continues to grow as an enabling technology that provides cost economy and time efficiency for the oil and gas industry. It has gained wider acceptance than ever due to efforts of the manufacturers, CT application engineers, and field operators. However, most CT applications (with the exception of velocity strings) are services to existing wells, with very few permanent production applications. A new CT application, using CT as a permanent production tubing string for artificial lift in shallow, low-production wells, has been developed. In this new application as described in this paper, CT is used to reciprocate a subsurface pump plunger. This CT pumping system is illustrated and engineering principles behind the system are presented. Engineering feasibility and reliability of the system, including fatigue problems, are investigated. Sensitivity of pump system fatigue to pump rate, CT and casing dimensions, CT material grade, pump length, vertical well depth, and fluid density is analyzed. Finally, a successful on-going field example is presented. More tests with the pump system are planned for deeper and higher production wells in the near future. It is believed that the new CT pumping system has the potential to significantly impact the economics of artificial lift systems, especially in shallow and low-production wells.