This invention relates to petroleum reservoir characterization. It uses a novel system and method to generate a system of reservoir models, and then use a series of simulation techniques to simulate the models. The models are refined through each simulation and comparison step by comparing the results of the simulation with the known data from the reservoir. The invention can be applied to different reservoirs which have different known properties. Simulation techniques such as EM test forward calculation, stochastic reservoir modeling, streamline forward calculation are all candidates of simulation methods disclosed in the invention.