A production tubing comprising a liner is placed downhole in a wellbore. A fluid pill containing proppant is squeezed into the annulus between the formation and liner, thereby packing the proppant into the annulus, effectively isolating the annulus. The packed proppant is permeable to liquids but impermeable to fracturing proppants. After isolation of the annulus, the wellbore may be perforated using a resettable perforation assembly. Once perforating is complete, the wellbore is fractured. The presence of the packed proppant in the annulus generates resistance to the flow of fracturing fluid along the annulus, forcing the fracture to propagate down the perforation tunnels, while also allowing subsequent production fluids to be produced along the annulus.