This technical progress report describes work performed from January 1 through March 31, 2003 for the project ''Heavy and Thermal Oil Recovery Production Mechanisms,'' DE-FC26-00BC15311. In this project, a broad spectrum of research is undertaken related to thermal and heavy-oil recovery. The research tools and techniques span from pore-level imaging of multiphase fluid flow to definition of reservoir-scale features through streamline-based history matching techniques. During this period, previous analysis of experimental data regarding multidimensional imbibition to obtain shape factors appropriate for dual-porosity simulation was verified by comparison among analytic, dual-porosity simulation, and fine-grid simulation. We continued to study the mechanisms by which oil is produced from fractured porous media at high pressure and high temperature. Temperature has a beneficial effect on recovery and reduces residual oil saturation. A new experiment was conducted on diatomite core. Significantly, we show that elevated temperature induces fines release in sandstone cores and this behavior may be linked to wettability. Our work in the area of primary production of heavy oil continues with field cores and crude oil. On the topic of reservoir definition, work continued on developing techniques that integrate production history into reservoir models using streamline-based properties.