This paper extends the fully coupled geomechanics and reservoir simulator previously developed by the authors to include temperature effects using finite element methods (FEM). The strain-induced permeability model and the full permeability tensor are incorporated into the developed deformation-flow-heat transfer simulator. Numerical examples are given to evaluate the validity of the FEM model. The simulation results demonstrate that the strain-induced permeability model has significant effects on wellbore pressure response and geomechanical behaviour the reservoir.