China＇s Liaohe oil field contains many small, individual reservoirs with oil viscosities ranging from 100 to more than 50,000 cp. Because of pressure depletion, steam-huff ＇n＇ puff (cyclic-steam) oil recovery has reached its economic limit in several reservoirs. Recently, a flue (exhaust) -gas/ steam-slug process was tested to improve recovery of medium-heavy oil (viscosity less than 1,000 cp). Pilot tests used one injection well and nine production wells, and showed encouraging results. Average oil production increased and water cut decreased, reducing operating and water-disposal costs. Cost of the entire operation is approximately one-half that for a boiler-generated-steam project.