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Ensemble-based history-matching methods have received much attention in reservoir engineering. In real applications, small ensembles are often used in reservoir simulations to reduce the computational costs. A small ensemble size may lead to ensemble collapse, a phenomenon in which the spread of the ensemble of history-matched reservoir models becomes artificially small. Ensemble collapse is not desired for an ensemble-based history-matching method because it not only deteriorates the capacity in uncertainty quantification, but also forces the ensemble-based method to later stop updating reservoir models. In practice, distance-based localization is thus introduced to tackle ensemble collapse. Distance-based localization works well in many problems. However, one prerequisite in using distance-based localization is that the observations have associated physical locations. In certain circumstances …