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P16 CAPILLARY EFECTS IN RESERVOIR SIMULATION 1 Capillary forces play significant effect in water oil distribution in a porous reservoir. In the classic theory anticline conception in which water-oil contact is a horizontal surface is a basic principal. In practice formation evaluation and seismic data some times are in contradiction with this principal. This situation is usually explained by reservoir faults [1]. Distribution of oil in the vicinity with water-oil surface is defined by the balance of gravity and capillary forces. When the capillary properties of the reservoir are not homogeneous the thickness of water-oil contact may vary in the