Attention has been given to reduce the cost of surfactant by using castor oil as an alternative natural source of feedstock. A new surfactant, sodium methyl ester sulfonate (SMES) was synthesised using ricinoleic acid methyl ester, which is obtained from castor oil, for enhanced oil recovery in petroleum industries. The performance of SMES was studied by measuring the surface tension with and without sodium chloride and its thermal stability at reservoir temperature. SMES exhibited good surface activity, reducing the surface tension of surfactant solution up to 38.4 mN/m and 27.6 mN/m without and with NaCl, respectively. During the thermal analysis of SMES, a 31.2% mass loss was observed from 70 °C to 500 °C. The phase behavior of the cosurfactant/SMES-oil-water system plays a key role in interpreting the performance of enhanced oil recovery by microemulsion techniques. Flooding experiments were performed using a 0.5 pore volume of synthesized SMES solutions at three different concentrations. In each case chase water was used to maintain the pressure gradient. The additional recoveries in surfactant flooding were found to be 24.53%, 26.04% and 27.31% for 0.5, 0.6 and 0.7 mass% of surfactant solutions, respectively.