Abstract
This paper presents an alternative method for simulation of oil reservoirs. The model is derived by partial integration (in the vertical dimension) of three dimensional equations based on Faust and Mercer's technique. This approach leads to two nonlinear partial differential equations posed in terms of vertically averaged fluid pressure and enthalpy. The resulting areal model accounts for variations in reservoir thickness and slope. The equations are solved by the implicit pressure explicit saturation method. Example problems are presented to demonstrate the model's utility and to provide insight into the nature of steam soaking in an oil reservoir.