We developed a numerical model to simulate steam-water injection into fractured diatomite formations. To mitigate the high nonlinearity in both the EOS of the water substance and the behavior of a fracture-matrix system, our formulations are simplified from actual system behavior but preserves the most fundamental behaviors of the steam-water fracture-matrix system. As a preliminary example of application, we used the model to study the effects of rock permeability on the development of the heated zone around the injection point. The results show how the steam chamber dimensions and injection temperature depend on rock permeability.

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