This article, written by Senior Technology Editor Dennis Denney, contains highlights of paper SPE 148717, ’Effects of Fluid and Rock Properties on Reserves Estimation,’ by Kegang Ling, SPE, Zheng Shen, SPE, Texas A&M University, prepared for the 2011 SPE Eastern Regional Meeting, Columbus, Ohio, 17-19 August. The paper has not been peer reviewed. Precise reserves calculation is fundamental for production forecasting. Great efforts are made to obtain fluid and rock properties such as porosity, permeability, saturation, rock and fluid compressibility, viscosity, fluid gravity, gas z-factor, saturation pressure, reservoir pressure, and temperature. There is always uncertainty regarding the information because of instrument sensitivity and limitations, measurement error, environmental effects, sample interval, location, and how representative of the rock the sample is. A systematic study on the effects of fluid and rock properties on reserves estimation was conducted. Introduction Fluid and rock properties control the volume of original hydrocarbon in place and the recoverable oil and gas. Uncertainty and error exist because of the instrument sensitivity and limitations, measurement error, environmental effects, sample interval, location, and how representative of the rock the sample is. Measuring rock properties under reservoir conditions is very difficult. A synthetic field was built to study the effects of fluid and rock properties. It is an oil field with aquifer support. The initial reservoir pressure is above the bubblepoint pressure. Initially, five producers were drilled to produce oil. With time, reservoir pressure declined. As the reservoir pressure declined below the bubblepoint with production, solution gas was released from oil. When the gas saturation reached critical saturation, it began to flow with the oil and water. This three-phase flow in the reservoir represents the middle and late production periods. Model Description The simulation model divides the reservoir into 93×93×2 gridblocks. The reservoir is modified to an irregular shape by assigning zero porosity and permeability to gridblocks at the reservoir edge. To populate the rock properties, different porosities, permeabilities, depths, and pay thicknesses were assigned to each gridblock. Initially, a uniform oil/water contact divided the porous sand into oil and water zones. Pressure at datum was assigned such that pressure above and below the datum can be calculated according to in-situ fluid density. Initial water saturation was assigned to respect the real oil reservoir. Rock and water compressibilities were incorporated and were assumed to be constant at different pressures. Oil viscosity varied with the pressure because solution gas has a significant effect on it. Water viscosity was kept constant. Oil gravity, gas specific gravity, water specific gravity, formation-volume factor (FVF) for oil and gas, and solution-gas/oil ratio were assigned with values often found in real oil fields.