A series of simulations was run in an initial study to determine the dependence of critical reservoir parameters, such as residual oil saturation, on reservoir heterogeneities. In the initial work a random set of permeabilities constrained to a log normal distribution was input to a black oil simulator (BEST). At the end of a simulated waterflood, no significant correlation was found between residual oil saturation and permeability. A different approach was then used where a large heterogeneity was placed at the center of the simulation grid. Under these conditions a good correlation between residual oil saturation and permeability was found at the end of the simulated waterflood. In the future, additional simulations will be conducted to determine the minimum resolution required to reflect a reservoir heterogeneity. 1 ref., 8 figs., 2 tabs.