Abstract: The Xishanyao J2x4reservoir in Luliang oilfield is a typical reservoir with bottom water, characterized by low amplitude structure, sand-mud laminated layers and complicated oil-water relationship. To improve the status that the water cut is raising rapidly, at the early stage of development, numerical simulation
method is utilized to study the reasonable technical policies,such as ratio of water injection and recovery, timing of water injection and perforating level. The simulation results show that the reasonable injection-production ratio is 0. 7, that water should be injected after developing for one and half years, and
that 50% perforating level is optimal. Such results have a good guidance for the development of this reservoir.

Key words: reservoir with bottom-water, numerical simu-lation, technical policies, oil recovery