Mitchell Energy Corp. has implemented a liquefied petroleum gas (LPG)/drive-gas miscible process in the Alvord (3000 ft Strawn) Unit in Wise County, TX, utilizing the U.S. DOE tertiary incentive program. The field has been waterflooded for 14 years and was producing near its economic limit at the time this project was started.This paper presents the results of the reservoir simulation study that was conducted to evaluate pattern configuration and operating alternatives to maximize LPG containment and oil recovery performance. Several recommendations resulting from this study were implemented for the project. On the basis of model predictions, tertiary oil recovery is expected to be between 100,000 and 130,000 bbl [15900 and 20700 m 3 ] or about 7% of the oil originally in place (OOIP) in the unit.An evaluation of the project performance through Dec. 1981 is presented. This portion of the paper was written after drive-gas injection had just been initiated and represents only a preliminary evaluation of the project. In July 1981 the injection of a 16% hydrocarbon pore volume (HCPV) slug of propane was completed. Natural gas is being used to drive the propane slug. A peak oil response of 222 BID [35.3 m 3 /d] was achieved in Aug. 1981 and production has since been declining. This compares with a peak rate of 400 BID [63.6 m 3 /d] during the waterflood, and an oil rate just prior to initiation of LPG injection of 7 B/D [1.1 m 3 /d]. The observed performance of the LPG flood indicates that the actual tertiary oil recovered will reach the predicted value, although the project life will be longer than expected. The results presented in this paper indicate that, without the DOE incentive program, the economics for this project would still be uncertain at this time.