A two-dimensional numerical model of the steamassisted gravity drainage process with a pair of horizontal wells (SAGD) is developed for heterogeneous, layered tar sand reservoirs. As a case study, this model is applied to Ugnu reservoir to study the effect of heterogeneity on the growth of steam chamber and the process performance.A detailed simulation study is conducted to determine the effect of various reservoir parameters such as porosity, permeability, initial mobile water saturation. Dykstra-Parson's permeability variation, reservoir anisotropy and shale barriers on the SAGD process performance in Ugnu reservoir. Also, the effect of process parameters such as steam injectivity, steam quality, steam temperature, horizontal well length, vertical and lateral well spacing is studied.

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