Abstract: An apparatus for separating a mixture of liquids of differing specific gravities in a wellbore is disclosed along with a method of installation and operation thereof. This device separates water from hydrocarbons prior to hydrocarbon extraction in order to decrease disposal costs of waste water. The device is designed to be compatible with existing oil wells that have been abandoned because of lack of profitability caused by a high water to oil ratio. The device may also be installed in new wells with a high water concentration.