Reliable characterization of the reservoir is crucial for reservoire valuation. According to the Preface in Ref. 1, "Reservoir characterization is a process for quantitatively assigning reservoir properties, recognizing geological information and uncertainties in spatial variability," Geostatistics provides the tools to integrate the available information within a unified and consistent framework and to generate multiple realizations that can account for the uncertainty and spatial variability of the key reservoir parameters. The objective of this paper is to give our views on the use of geostatistics in reservoir evaluation, to illustrate some basic concepts and possibilities, and to increase (we hope) the reader’s interest in further investigation and application of geostatistical techniques.