A two dimensional study of the reservoir compaction characteristics is presented. Investigations were accomplished using the finite difference package called FLAC. Compaction was computed for given laboratory measured rock properties, treated as a reference case, and the influence of rock porosity and permeability were examined in a comparative study. Two models hane been developed by extensive computer modelling on a basis of single well configuration with time independent flow development toward stabilisation at a fixed bottomhole pressure. Although the ratio of compaction to the reservoir thicknessis small due to the hard, well consolidated rock sample data used in the calculation, the results suggest that compaction strongly depends upon depletion strategy of oil and gas production. Stresses, primarily the minimum principle stress, are redistributed in accordance to calculate out-of-balance force caused by rock displacements. Compaction was found to increase with porosity by the effect of changes in the permeability was relatively small and trivial. The comparative studies achieved by comparing FLAC with two published analytical methods suggests that the erronous description of initial and boundary conditions well enlarge the prediction of compaction. Briefly, the analysis concludes that FLAC may be applicable for quick evaluation of likely compaction during oil and gas production. However its ability to simulate flow in porous medium is limited.