A method for estimating fluid saturation in a formation penetrated by a wellbore from nuclear magnetic resonance measurements made at a plurality of lateral depths into the formation from the wellbore includes estimating a bound water volume, a total porosity and a free water volume at each of the lateral depths from the nuclear magnetic resonance measurements. A minimum water saturation is estimated at each lateral depth from the total porosity, the free water volume and the bound water volume at each lateral depth. A value of water saturation is estimated at each lateral depth from the minimum water saturation at each lateral depth. A relationship between lateral depth and water saturation is determined. Water saturation is estimated at a selected lateral depth greater than the greatest lateral depth of the nuclear magnetic resonance measurements.