Abstract This paper will outline the process, tools and technologies utilized in a typical Production Management/Optimization process and study. While many of the components are not new, the traditional Production Optimization study is evolving into a new process Production Management. The results of a well optimization project conducted by Gulf Canada and Hartech Inc. In the Sylvan Lake, AB area are summarized. The obstacles for production optimization will be identified. The concept of establishing a new type of working relationship between producers and service companies will also be discussed. INTRODUCTION In September 1995, Gulf Canada personnel requested a proposal for dynamometer tests on approximately 65 wells in the Sylvan Lake area. During subsequent discussions between Gulf and Hartech, the following key factors became evident:Because of other ongoing projects and responsibilities, Gulf personnel were unable to dedicate the time required to extract well file data and relevant technical information.Baseline data was unavailable to determine which wells required evaluation, or to what extent testing was required. In response to these factors, Hartech submitted a proposal to Gulf to conduct a Production Management Study to establish a baseline of operating conditions for this group of wells: Step I Conduct a comprehensive well-by-well file investigation. Assemble all required and related mechanical and production data, plus summarize the completion and work over history. Step 2 Perform field testing and data acquisition:fluid level testsdynamometer surveysSUPORT & fluid depression surveysmeet with field personnel Step 3 Perform technical analysis and evaluation:in-depth dynamometer analysesproducing pressure calculationsInflow Performance Relationship (IPR) calculationssystem review and evaluationpumping system design and redesign Step 4 Summarize recommendations:identify potential production gainsextend equipment lifereduce power costsreduce work over frequency WHAT IS PRODUCTION MANAGEMENT? Very simply stated, Production Management is the step-by step, process of maximizing oil production over the long term while minimizing total production costs. The overall goal is to achieve the optimum profitability from the well or field. To achieve and maintain this, it is essential to evaluate and monitor many aspects of the production system:production equipment, surface and down holethe wellborethe sand facethe reservoirthe produced fluidsthe production history To perform Production Management economically and efficiently requires:expertise in all aspects of the production systeminformation management systemselectronic data acquisition SUMMARY OF RECOMMENDATIONS An effective Production Optimization study does not in itself create additional production or reduce costs, but does give concise recommendations on how to achieve these desired results. The Sylvan Lake study gave the following summary of recommendations: a)To increase production:increase pumping speed on 5 wellsincrease the stroke length on 2 wellsupsize, modify, or redesign equipment on 10 wells Figure. Recommendations to Increase Production (Available in full paper) b) To extend equipm