Because of its specificity of volcanic reservoirs, Elkins empirical criterion determined the optimum hydraulic fracture parameters in conventional sand gas reservoir are unsuitable. DX14 volcanic gas reservoir has an average porosity 13.19% and the effective permeability 0.31mD. The production performance shows that fluid flow is gas-liquid two-phase. Based on the motion equations and continuity equations of gas/water phase flow, flow control equations are established and numerical solutions are obtained by IMPES method. Hydraulic fracturing production performance simulator is studied and developed in gas-liquid two-phase flow. The fracture half-length is optimized to be 150-200m and the fracture conductivity is 20D.cm in this area in based of the change in production.
