A method for determining spatial distribution of a property within a volume of subsurface formations includes generating an initial model of spatial distribution of a property of the formations using available data related to the property distribution within the volume. A forward model is generated in the wavenumber domain of spatial distribution of a potential field. Measurements of a physical parameter having a potential field obtained at spaced apart locations above the volume and/or in at least one wellbore penetrating the volume are entered. A revised model of spatial distribution of the potential field is generated by interpolating the measurements of the parameter. The interpolating is performed in the wavenumber domain. A revised model of spatial distribution of the physical property is generated by inversion in the wavenumber domain of the revised potential field model.