A fracture model was constructed for the Natih-E reservoir unit of the Fahud held in north Oman. The fracture model indicates that the current gas/oil gravity-drainage (GOGD) -recovery mechanism is an inefficient oil-recovery method for a large part of the lower Natih-E. The optimum well pattern for a waterflood development within two Natih-E subunits is proposed on the basis of simulation results. The development is expected to increase recovery from 17% under GOGD to 40% for the waterflood.