Indentification of the recovery mechanism for the more permeable conglomerate/low permeability sand system in the Falher formation in Alberta, Canada was accomplished by reservoir simulation of single wells. Reservoir properties of porosity, permeability, and water saturation were corrected to insitu conditions.

Results show that vertical percolation of gas from the low permeability sand into the conglomerate is generally not the rate limiting factor due to the large areal contact between the two intervals. Gas recovery from low permeability sands is controlled by very low permeability high water saturation zones* These zones become effective barriers in the ten nano-darcy range.

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