The overall objectives of this work are: (i) to investigate the importance of various qualities and quantities of data on the optimization of water flooding performance; and (ii) to study the application of newly developed, geostatistical techniques to analyze available production data to predict future prospects of infill drilling. Specifically to satisfy our first objective, we will study the feasibility of applying fractal geometry concepts to characterize individual formations; develop a three-dimensional conditional simulation program to define reservoir properties at various scales; establish a method to integrate the data collected at various scales including the well test and the core data; and to investigate the utility of outcrop data in describing subsurface reservoir details. To satisfy the second objective, we will investigate various techniques to utilize the production data, including initial potential and the production decline, in proposing a possible location for a future infill well. The techniques investigated will include geostatistical analyses. The study will be restricted to Pennsylvanian sandstones reservoirs commonly found in Oklahoma.