By numerical simulation, a bilateral horizontal well is placed in a crude oil reservoir with bottom water. The upper branch which is located near the top of the reservoir is for producing and the lower branch which is located near the oil water contract is for nitrogen foam injecting. Packers are used to control the alternation between productions and injections. When water cut of the upper branch reaches a certain value, this branch is shut and nitrogen foam is injected into the lower branch. After two days' soaking, the upper branch is opened to produce again. This process can be repeated for several times along with the reservoir development. The main mechanisms of this development style are analyzed, and different injecting methods including injecting foam in the lower branch (IFLB), injecting foam in the upper branch (IFUB), and injecting nitrogen gas in the lower branch (INLB) are contrasted. The effect of reservoir heterogeneity on the performance of IFLB is also considered. Various stochastic realizations with different shale contents and correlation lengths are established by sequential indicator simulation method. In order to explain the large variations occurring in the realizations with same shale content and correlation length, the definition 'below well region' (BWR) is put forward and two groups of models with different BWR are built to simulate the performance of IFLB. As expected, the geological condition of BWR has a great effect on the performance of IFLB. If the shale content of BWR is low, good performance can be obtained with any combination of shale content and correlation length for the remaining region. On the contrary, if shale content and continuity of BWR are high, the performance of IFLB will significantly decrease.