Abstract: Based on the theories on the distribution and flow of oil,gas and water through the micro-pores,the multi-function log interpretation program as a sort of interpretation system is designed to probe into the static nature of for-mations for the better appraisal of hydrocarbon resources on the one hand,and to unveil the dynamics of the production horizons for quantification of oil and gas reserves on the other.From application in 292 wells in 14 different oil fields,the system has proved to be capable of solving many geological problems such as:qu-antitative appraisal of pay zones;prediction of water production and produc-tivity of formations;quantitative description of flooding in open holes;determination of surplus oil saturation and its distribution in the pay zones,etc.It is expected that with the use of new logging technique,this system may be useful for other functions.