Geostatistics techniques are being used increasingly to model reservoir heterogeneity at a wide range of scales. A variety of techniques is now available with differing underlying assumptions, complexity, and applications. This paper introduces a novel method of geostatistics to model dynamic gas-oil contacts and shales in the Prudhoe Bay reservoir.

The method integrates reservoir description and surveillance data within the same geostatistical framework. Surveillance logs and shale data are transformed to indicator variables. These variables are used to evaluate vertical and horizontal spatial correlation and cross-correlation of gas and shale at different times and to develop variogram models. Conditional simulation techniques are used to generate multiple three-dimensional (3D) descriptions of gas and shales that provide a measure of uncertainty. These techniques capture the complex 3D distribution of gas-oil contacts through time.

We compare results of the geostatistical method with conventional techniques as well as with infill wells drilled after the study. Predicted gas-oil contacts and shale distributions are in close agreement with gas-oil contacts observed at infill wells.

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