This study takes S3 reservoir in block Wa38 of Xiaowa oilfield as the target block, analyzes basic data such production data, steam injection profile and logs, evaluates the producing status and residual oil distribution of cyclic steam stimulation by dynamic monitoring and numerical simulation, and clarifies the problems and potential of the reservoir. Next, this paper deeply studies the replacing method based on the studying of Steam flooding test, the result shows that the exploitation mechanism of SAGD is a feasible replacing method after cyclic steam stimulation for S3 reservoir in Block Wa38, Optimal reservoir engineering design of SAGD with combination of vertical an horizontal wells is conducted and provides technical support for field implementation.The recovery factor of SAGD may the approximately 25%, ultimate recovery factor over 56%.
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