The use of a thixotropic gelatinous oil-base fluid as an insulating medium in different oil field applications has become increasingly important. Its economic advantage over tubing/casing insulators makes it very attractive. It has proven itself as a successful thermal insulator in the field, particularly in steam injection projects. The data generated in the field, related to its thermal characteristics, are difficult to correlate because so many variables exist from well to well. This investigation was undertaken to define some properties, under more controlled conditions, that would promote more efficient utilization of the thixotropic gel. Heat transfer coefficients were generated so that its efficiency as an insulator can be rated relative to other insulators. Thermal expansion coefficients, derived in the study, are much needed in engineering calculations such as volume requirements, tubing/casing strength, etc. Behaviour of the insulating gel at 700°F and 10,000 psi and static gel strength at various temperatures were also determined to answer questions on temperature limitations and pressure requirements for placement and displacement.