Little Sand Draw field, Hot Springs County, Wyoming, is a fractured and faulted asymmetric anticlinal oil reservoir. The main producing formation is the Permian Phosphoria Formation. Numerical simulation of this reservoir is important for evaluating reservoir quality and past and future performance. This study presents a new integrated methodology which combines reservoir engineering with geology to improve reservoir characterization, simulation, and planning for reservoir management.The goal of this project is to apply a new geological and engineering approach to simulate directional permeability in a faulted and fractured anticlinal oil reservoir. Tear faults, which have apparent strike slip offset and occur at high angles to the fold axis, have been quantified at Thermopolis anticline, an analogous structure 6 mi (10 km) to the south. The observed tear faults could be significant source of permeability anisotropy, and may provide high permeability conduits across structural folds. Anisotropic directional permeabilities, roughly perpendicular to fold axes, are known from pressure-interference tests in the Phosphoria Formation at Little Sand Draw field. The hypothesis is that tear faults are the cause of the observed directional permeability.iv To accomplish the objectives, this study constructed 3-dimensional geological and fluid-flow models of the Little Sand Draw field. The spacing of faults in outcrop was used as input for fault compartments in the reservoir simulation model. The hypothesis to be tested in this study is whether reservoir models with or without tear faults provide a good history match.
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