Advances in well and completion design together with higher oil prices and increased depletion trends of maturing assets have been the driving force behind developing marginal fields. The remaining hydrocarbons in marginal accumulations mostly located in the transition zones. There are numerous examples of water-free oil production from zones that are interpreted as transition zones from logs. These observations have caused debates over the concept, definition and potential of capillary-transition-zone (CTZ), especially for Low Resistivity reservoirs with high-clay content, where the distinction between the capillary-driven and apparent transition zone (ATZ) is not clear. Apart from environmental effects on Wireline logs, there may be other artefacts affecting the ATZ characterization such as laboratory procedures, wettability variation and hysteresis effect, water salinity changes, rock type and mineralogy.The complications in detection of CTZ, resource estimation and modelling flow dynamics in these reservoirs, hugely impact the development potential of these projects. The reliable resource assessment and flow dynamics predictions as well as the understanding of the mobile/immobile oil/water saturation and distributions and avoiding early water-breakthroughs are key components for the success of such developments.This study elaborates on integrated log interpretation, rock characterization/mineralogy, and digital core analysis for generating and up-scaling relative permeability and capillary pressure data, production tests and SCAL data to identify and characterize the CTZ rather than relying on ATZ from visual observation of logs. Identification of ATZ (with water-free oil production potential) versus CTZ (with two phase flow) is a key question to be answered before the development. The paper demonstrates an extensive elaboration of the transition zone (TZ) concept and the developed workflow and guidelines in the resource/reserve assessment, flow modelling and production predictions in the CTZ intervals.