A new method of reservoir evaluation called pulse-testing has been developed for describing formation properties between wells. Pulse-testing utilizes a sensitive differential pressure gauge at a responding well to measure and record the response generated by a series of flow rate changes (Pulses) at an adjacent or pulsing well. Comparison of pulse-testing results to conventional testing methods shows that the pulses obey unsteady-state, compressible-flow theory and thus provide a measure of both transmissibility (Kh/u) and storage (Och). In addition the method can be used qualitatively to describe communication across faults and between zones, and direction and magnitude of fracture trends. While pulse-testing is applicable in many reservoirs, it