Analysis of transient pressure response near a horizontal well has been based largely upon the analysis of mathematical solutions for the diffusivity equation. The diffusivity equation satisfies the principle of mass conservation, but does not consider the principle of equilibrium. No deformation properties of reservoir are included in the diffusivity equation. However, in some deformable reservoirs, the stress and deformation caused by injection or production could be so significant that it might affect the pressure response. This paper presents analyses of transient pressure response near a horizontal well using a coupled diffusion-deformation method. The results are compared with those obtained from the single diffusivity equation. Implications on practical applications such as well testing are addressed.

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