A method and apparatus for operating a well which has a wellbore which passes into both an oil and gas production zone and a gas injection zone. An oil and gas stream is produced from the production zone through the wellbore to the surface where gas is separated from the oil. After production is shut-in, gas is mixed with a carrier fluid at the surface to form a dense mixture which, in turn, is flowed down the same wellbore and through a downhole auger separator wherein a portion of the gas is separated from the mixture. The separated gas is injected into the injection zone with the remainder of the mixture being returned to the surface. At the conclusion of the injection cycle, the well is returned to production and, if desired, the process is repeated.