Production of Mesaverde tight-gas reservoirs is highly dependent on natural fractures. Fractures not only enhance the overall permeability, they also create significant permeability anisotropy that causes the drainage area of the wells to be elliptical. Elongated drainage areas creates production interference and drainage overlap between adjacent wells that are aligned in the maximum horizontal permeability direction, and increases the potential for leaving large sections of the reservoirs undrained. In addition, the Mesaverde sandstone reservoirs are locally heterogeneous, because of their fluvial depositional environment. Reservoir characterization and simulation models have been conducted in two pilot areas to predict reservoir quality, permeability anisotropy, well productivity for infill wells drilled on 80 acre spacing. Simulation results are compared to well performance of these infill wells and demonstrate the value of reservoir simulation in determining effective drainage areas, optimum location, and additional recovery of infill wells.