We have developed a method to account for reinfiltration and capillary continuity effects in the simulation of fractured reservoirs, The proposed method requires fine grid simulation of a three-block stack (two-block stack if it is assumed that there is no capillary continuity). The information is then used to construct the drainage curves of different gridcells that may contain a large number of matrix blocks. Variation of capillary pressure, block height, and permeability of various matrix blocks within a gridcell are accounted for without the need for fine grid simulation.

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