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There is a natural limit to when LGR is capable to support Peaceman approximation.
This can be illustrated on the case of isotropic permeability and square grid.
Formula The formula
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assumes that external boundary of drainage area is greater than well radius which introduces a natural limitation to applicability
of the of Peaceman approximation for pressure calculations in near-well reservoir zone with
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| body | D_{\perp} < 2.5 \, r_w |
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.
This is, for example, the case in SPT where time lag between pressure response to the flow variation is so small (seconds) that it dictates very small grid size around wellbore and Peaceman approximation can not be properly applied.
