In petroleum reservoir management, the essence of well placement is to develop
and maintain reservoir pressure in order to achieve maximum production
for economic benefits. Large production can be achieved with the placement
of multiple wells but this approach is capital intensive and inefficient for
the development of a reservoir. A preferable option is the optimal placement
of production and injection wells so as to fully capitalize on the imbedded hydrocarbons
at a relatively decreased capital investment. The aim of this study
is to use developed algorithm and a black oil simulator to place wells in the
zones for optimal recovery in the reservoir. Optimal production was determined
out of eight scenarios created from well placement in a hypothetical
reservoir (finch reservoir) using a black oil simulator, alongside an algorithm
developed with java for determining the best possible locations for well
placement, taking into consideration the reservoir permeability, fluid saturation,
and pay zone thickness. The results of this study reveal that well placement
using the engineering judgment coupled with the application of the algorithm
using a black oil simulator results in better production compared to
other scenarios which consider the combined effect of algorithm and black oil
simulator alone
