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# What is Peaceman’s formula?

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In reservoir simulation to calculate fluid inflow pressure drop (reservoir pressure - BHP) required. The pressure equivalent radius of the grid block is defined as the distance from the well at which the local pressure is equal to the nodal average pressure of the block. In a Cartesian grid, Peaceman’s formula used, which is applicable to rectangular grid blocks in which the permeability may be anisotropic. The well is assumed to penetrate the full thickness of the block, through its center, perpendicularly to two of its faces.[1]

If Kx = Ky and Dx = Dy, Peaceman’s equivalent radius: re≈ 0.2*Dx

This is intended for vertical wells. Horizontal wells may penetrate the block in either he x- or y- direction, and the appropriate components of permeability and block dimensions are substituted in these equations. For a well penetrating in the x-direction, for example, the quantities Ky, Kz, Dy, Dz willbe used in equation.