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TX 75083-3836, U.S.A., fax 01-972-952-9435. AbstractIn this paper, we combine the geostatistical methods of conditional simulation with conventional methods of deriving flow units to characterize a section of the Endicott Field, North Slope of Alaska. Hydraulic flow units are generated using well logs, core data and core descriptions from 10 wells. Geostatistical techniques of sequential Gaussian simulation and sequential indicator simulation were used to obtain equiprobable realizations of the reservoir properties such as porosity and permeability.Conventional interpolation techniques of inverse distance by power and kriging were also applied to describe the distribution of porosity and permeability in the developed flow units model. To validate conventional and geostatistical approaches, the fluid flow simulations of waterflooding were performed in the small section of Endicott Field. Results of the waterflood performance showed that geostatistical models give more detailed description of the reservoir heterogeneities compared to conventional methods.