A systematic methodology which combines inflow performance analysis, production forecasting, and economic considerations is presented for optimum recovery of hydrocarbons from naturally fractured reservoirs using horizontal well technology. An analytical method for predicting the production performance of horizontal wells in a solution gas drive, naturally fractured reservoir is presented based on material balance analyses and linear approximations of reservoir fluid properties as functions of reservoir pressure. The effect of natural fracture characteristics on production performance is accounted for by use of inflow performance equations. A detailed economic evaluation model accounting for the time value of cash flow, including the effects of interest rate and inflation rate, is also presented and used in the analysis. Results are presented which demonstrates the methodology developed and its application to the optimum primary recovery from horizontal wells completed in naturally fractured reservoirs.