A method for well production forecasting using measured transient flow rate and pressure data and a geological reservoir model, the method comprising: calibrating a geological reservoir model, the calibrating including: analyzing a series of pressure transient well tests providing measured transient flow rate and pressure data for a well; using the measured transient flow rate as input, deriving the geological reservoir model and a first set of parameters for the geological reservoir model that most closely match the measured pressure transient data; after deriving the geological reservoir model and first set of parameters, building a simulated history of bottom hole pressure for the well based on the geological reservoir model and the measured transient flow rate data; using the measured transient pressure data and the simulated history of bottom hole pressure as input, deriving the geological reservoir model and a second set of parameters for the geological reservoir model that most closely match the measured flow rate transient data; and after deriving the geological reservoir model and the second set of parameters, building a simulated history of downhole flow rate for the well based on the geological reservoir model and change in the measured transient pressure data; and forecasting future production from the well using the calibrated geological reservoir model. calibrating a geological reservoir model, the calibrating including: analyzing a series of pressure transient well tests providing measured transient flow rate and pressure data for a well; using the measured transient flow rate as input, deriving the geological reservoir model and a first set of parameters for the geological reservoir model that most closely match the measured pressure transient data; after deriving the geological reservoir model and first set of parameters, building a simulated history of bottom hole pressure for the well based on the geological reservoir model and the measured transient flow rate data; using the measured transient pressure data and the simulated history of bottom hole pressure as input, deriving the geological reservoir model and a second set of parameters for the geological reservoir model that most closely match the measured flow rate transient data; and after deriving the geological reservoir model and the second set of parameters, building a simulated history of downhole flow rate for the well based on the geological reservoir model and change in the measured transient pressure data; and analyzing a series of pressure transient well tests providing measured transient flow rate and pressure data for a well; using the measured transient flow rate as input, deriving the geological reservoir model and a first set of parameters for the geological reservoir model that most closely match the measured pressure transient data; after deriving the geological reservoir model and first set of parameters, building a simulated history of bottom hole pressure for the well based on the geological reservoir model and the measured transient flow rate data; using the measured transient pressure data and the simulated history of bottom hole pressure as input, deriving the geological reservoir model and a second set of parameters for the geological reservoir model that most closely match the measured flow rate transient data; and after deriving the geological reservoir model and the second set of parameters, building a simulated history of downhole flow rate for the well based on the geological reservoir model and change in the measured transient pressure data; and forecasting future production from the well using the calibrated geological reservoir model. <EOS>