Abstract: This paper suggests a new technique in the evaluation of the continuity and other development geological parameters of the reservoir formation by using production data(and/or interference well testing data)as a basis combined with other results of geological study. Its application may be helpful to delineate the fault blocks inside an oil field, to estimate reservoir parameters, such as reserves in a single fault block(including the size of the aquifer), average transmissibility of the reservoir and the interwell continuity of the reservoir formations…etc. The generalization of such a technique may give an optimum orientation of the location of new wells to be drilled in case that sufficient conditions have been arrived. To meet the needs of a large scaled engineering problem, a nonlinear programming with complex constraints established already is reduced to a linear programming which can be solved by interation step by step. In order to make this technique more competent, this paper suggests that results of geological study should be used largely to utilize all inforations provided before the selection of an initial guess value. It is expected that this technique may find its wide application in the "roll-over" development of a block faulted oil field.