A new numerical simulation method was developed to solve two-dimensional reservoir problems of the type encountered in drilling and producing activities of a single well. The method includes more variables and is more generally applicable than any available method designed for individual well problems. Emphasis was placed on simulating reservoir behavior in the vicinity of the wellbore. To achieve accuracy in computing pressures and saturations close to the wellbore, very small flow cells were used. A fully implicit finite-difference scheme was developed to obtain numerical stability. ..
