Extensive reservoir characterization, including the first cores taken from over 3,400 wells, has defined the natural fractures and identified 3 major fault directions. One of the major surprises of the project has come from identification of the fracture systems, and understanding of how to implement waterflooding in relationship to the fractures. In the pilot area of Daniel field waterflooding has dramatically increased oil production 6-fold. On-trend wells responded to waterflooding dispelling the previously held notions that production wells aligned on-trend with injection wells will experience rapid channeling via Water injection facilities of Daniel Field Spraberry fractures and give no incremental Trend, Texas. production. Each of 7 on-trend wells represents an incremental gain of 65-70 BOPD. Increased oil production indicates that the on-trend waterflood is now contacting unswept rock in area that had been previously waterflooded.