This paper presents the mathematical properties of a control-volume, finite-element (CVFE) scheme. We show that appropriate constraints on finite-element grids and convenient definitions for volumes and transmissibilities lead to a convergence property for the CVFE scheme. This convergence property proves that use of the CVFE scheme is mathematically correct for reservoir simulation. With the control-volume concept, the local balances of each component are fully satisfied. Because the discretized equations resulting from the scheme can be solved by classic methods, the CVFE scheme can be implemented easily in a general-purpose simulator. In the implementations in this paper, we use prismatic finite elements for 3D full-field simulations and triangles for 2D simulations. The grid is generated with automatic techniques, popular in structural engineering, resulting in numerical diffusion that is as isotropic as possible; therefore, grid-orientation effects are controlled and accuracy is easily improved through natural grid refinement. Examples show that, for the same accuracy, computational costs are lower for results obtained with the CVFE scheme than for those obtained with finite-difference grids. The CVFE scheme is an excellent alternative to flexible gridding techniques used in finite-difference simulators because the entire reservoir can be gridded as required, without use of special techniques for local grid modifications.