Abstract: Heat exchanger apparatus for use with refrigeration cycle heating and cooling equipment is disclosed. In the preferred embodiment, it cooperates with and modifies refrigeration equipment including a compressor, an expansion valve, an evaporator coil and a closed loop for cycling refrigerant. This apparatus is a sealed container adapted to be placed in a well extending into artesian (relatively heated or chilled) formations whereby the water of the formation stabilizes the temperature around the unit and enables heating and cooling. The sealed unit receives refrigerant from the top which flows along the sidewall at a reduced temperature, thereby condensing on the sidewall and trickling down the sidewall to collect in a sump at the bottom where the compressor pump picks up condensed refrigerant as a liquid and pumps it out of the artesian well to the connected refrigeration equipment.