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The use of ensemble Kalman filter techniques for continuous updating of a reservoir model is demonstrated. The ensemble Kalman filter technique is introduced, and thereafter applied to a simplified 2-D field model, which are generated by using a single horizontal layer from a North Sea field model. By as similating measured production data, the reservoir model is continuously updated. The updated models give improved forecasts and the forecasts improve as more data is included. Both dynamic variables, such as pressure and saturations, and static variables, such as the permeability, are updated in the reservoir model.