The mechanism of fluid flow in the reservoir can be determined through the knowledge of the potential distribution inside the reservoir. Presenting Discrete Flux Element (DFE) Method this paper provides a general analytical solution to potential distribution due to a producer with straight or curvilinear configuration for both uniform flux and uniform potential inner boundary conditions in 3-D. The results consist of: 1) the equations for productivity indices, 2) shape of the drainage area for each case. This study shows that the drainage area for a horizontal well, beyond a certain radius is vertical in the vertical planes (xz and yz). In the horizontal planes it is first elliptical and at points far from the producer it is circular.

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