As a part of field development campaign to produce heavy-oil from a shallow sandstone reservoir, among vertical wells, drilling of horizontal wells was considered as an option. However, due to the weak and unconsolidated nature of the reservoir sand, the stability of horizontal wellbore during drilling was considered a major unknown. The stability of rock around the wellbore during drilling is function of several factors including rock strength, in situ stresses, pore pressure and drilling parameters. Integration of a wide variety of data into a geomechanical analysis is required for wellbore stability predictions.A comprehensive geomechanical study of the unconsolidated sandstone reservoir was conducted by incorporating data from six vertical offset wells in order to constrain the contemporary state of stress and rock strength profiles as a function of depth. The aim of the study was to evaluate the risk of hole stability during drilling, recommend a mud weight for drilling upcoming horizontal wells and to suggest azimuths along which horizontal wellbores will be more stable during drilling and production.To closely simulate the actual stress state and rock deformation around the wellbore during drilling, a 3D Finite Elementbased wellbore model was built. The analysis was performed for a range of mud weights to analyze the sensitivity of wellbore stability to mud weight variations. Based on the study, a mud weight was recommended to drill the planned horizontal wells. In addition, the analysis implied that for the observed stress state in the study field, horizontal wells oriented sub-parallel to the minimum horizontal in situ stress would be more stable during drilling and production compared to those oriented sub-parallel to the maximum horizontal in situ stress.