More than 13 billion barrels (Bbbl) of mobile oil and 17 Bbbl of residual oil will remain in San Andres and Grayburg reservoir at abandonment under current development practices. Through development and application of new recovery technology a large part of this resource can be recovered. This report focuses on research for the development and testing of new techniques for improving recovery of this resource. Outcrop and subsurface geologic and engineering data are utilized to develop new methodologies through the integration of geologic observations and engineering data for improving numerical models that predict reservoir performance more accurately. Extensive regional mapping of the 14-mi by 1,200-ft San Andres outcrop, located on the Algerita Escarpment, Guadalupe Mountains, New Mexico, demonstrates that the San Andres carbonate-ramp complex is composed of multiple depositional sequences that have significant basinward shifts in reservoir-quality facies tracts occurring across sequence boundaries. Detailed geologic and petrophysical mapping of three reservoir-quality facies tracts demonstrates that the fundamental scale of geologic description for reservoir characterization is the parasequence and its component rock-fabric-based facies. Descriptions of cores from the Seminole San Andres Unit illustrate that the parasequence is also the fundamental geologic scale for reservoir mapping in the subsurface. Outcrop and subsurface petrophysical data show that the parasequence framework can be quantified in petrophysical terms through rock-fabric-based transforms. Three basic rock-fabric/ petrophysical classes, each having distinct porosity, permeability, and saturation characteristics, can be used to quantify both the outcrop and subsurface. In the outcrop, these relationships are used to convert permeability and rock-fabric data into porosity and saturation values. In the subsurface, these relationships together with relationships between rock-fabric, acoustic travel time, and resistivity are used to transform wireline log data into porosity, permeability, and saturation values.