Definition of petroleum reservoir heterogeneity using conventional methods and possible improvements to these methods. Reservoir rock properties and their spatial variations; estimation of reserves; introduction to theory and application of geostatistics to reservoir characterization; presentation of fundamental geostatistical concepts including: variogram analysis, estimation variance, kriging and stochastic simulations. Impact of geologic structure on oil recovery methods. Review of basic statistical concepts and methods. Reservoir rock and fluid property evaluation by statistical methods. Scale-up and simulator data Preparation. Emerging methods in petroleum reservoir characterization. Pre-req.: PTRE202, PTRE303.