This study presents a cost effective and quantitative method for the characterization of flow units and prediction of hydrocarbon recovery of the reservoirs in wells D and E, “Aqua field”, Niger Delta. It involves petrophysical evaluation of well log data in order to obtain porosity and permeability values which were useful in identifying and characterizing flow units with the help of the Stratigraphic Modified Lorenz Plot (SMLP). This plot was then used to identify the number of flow units, key flow unit characteristics and anticipated production performance of the hydrocarbon bearing reservoir and the data subjected into a numerical simulator that allows better resolution characteristics of the well. The D-1 reservoir interval has five flow units, which comprise both speed zones and baffle intervals. Reservoirs E-1 to E-4 also have a total of 21 flow units. High values of flow unit speed and high angle flow capacity inflexion indicate speed zones which are prone to sharp decline, while baffles of low value flow unit speed and low angle flow capacity show shallow to steady production decline with time. A better understanding of the fluid flow variations within the reservoir intervals helps in the accurate design of reservoir simulation model for effective hydrocarbon recovery and management.