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We start with reservoir pressure diffusion outside wellborethe reservoir flow continuity equation:

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anchorrho_dif
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\frac{\partial (\rho \phi)}{\partial t} + \nabla \, ( \rho \, {\bf u}) = \sum_k \dot m_k(t) \cdot \delta({\bf r}-{\bf r}_k)

percolation model:

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anchoruu
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{\bf u} = - M \cdot ( \nabla p - \rho \, {\bf g})

and the reservoir boundary flow condition:

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anchorqGamma
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{\rm F}_{\Gamma}(p, {\bf u}) = 0

where

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body\Sigma_k

well-reservoir contact of the 

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bodyk
-th well

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body--uriencoded--d %7B\bf \Sigma%7D

normal vector of differential area on the well-reservoir contact, pointing inside wellbore

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body \dot m_k(t)

mass flowrate at 

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bodyk
-th well 
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body \dot m_k(t) = \rho(p) \cdot q_k(t)

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bodyq_k(t)

sandface flowrate at 

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bodyk
-th well 

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body\rho(p)

fluid density as function of reservoir fluid pressure 

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bodyp

...