Hydraulic fracturing allows numerous, otherwise unproductive, low permeability hydrocarbon formations to be produced. The interactions between the fractures and the heterogeneous reservoir rock, however, are quite complex, which makes it quite difficult to model production from hydraulically-fractured systems. Various techniques have been applied in the simulation of hydraulically fractured wells using finite difference simulators most of these techniques are limited by the gnd dimensions and computing time and hardware restrictions. Most of the current analytical techniques assume a single rectangular shaped fracture m a single phase homogeneous reservoir, the fracture is limited to the block size and the fracture properties are adjusted using permeability multiplier. The current work demonstrates how to model these systems with a smaller grid block size which allows you to apply sensitivity to the fracture length and model the fracture with enhanced accuracy. It also allows you to study the effect of reservoir heterogeneity on the fractured well performance. It is proposed to apply amalgam LGR technique to decrease the grid size to the dimensions of the hydraulic fracture without dramatically increasing the number of gnd blocks which would cause a great increase in the computing time and the model size with no added value. This paper explains how the amalgam LGR is designed and compares between standard LGRs and the proposed design and a case study is presented from an anonymous field in Egypt to illustrate how to use this technique to model the hydraulically fractured well. The simulation model is matched to available production data by changing fracture lengths. Then the model is used to predict future response from the wells. The advantage of this technique is that it allows hydraulically fractured reservoirs to be modeled with less grid size which will lead to more realistic models and more accurate predictions: however, the most usefid application of this technique may come in the fracture modeling stage. With this tool, various fracture geometries and scenarios can be tested in the simulator, and the most economic scenarios selected and implemented. This will cause better fracture placement, and ultimately greater production.

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