This paper describes a method for handling infinite-conductivity vertical fractures in reservoir simulation by using source and sink terms. It begins with a review of the concept of source/sink in reservoir simulation, and uses that concept to develop a method for computing the flow into or out of the fracture by assuming elliptical flow and by using the pressures of the blocks surrounding those containing the fracture. The assumption that the flow into the fracture is everywhere perpendicular to the fracture plane (i.e., linear flow) and the effect of the skin factor are also investigated.

Test runs showed excellent agreement between computed results and those obtained by analytical and variational methods for single-phase systems. The formulation was extended to multiphase systems, and simulation of a waterflood yielded physically reasonable results.

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