In this study, a comprehensive laboratory investigation was conducted for the recovery of heavy oil from a three-dimensional (3-D) physical model, packed with 18 degrees API gravity crude oil, brine and crushed limestone. A total of 15 experiments were conducted using the 3-D physical model with 30 cm x 30 cm x 6 cm dimensions. Basically, water-alternating gas (WAG) process was used for recovering heavy oil. Three groups of well configurations were mainly used: (i) vertical injection and vertical production wells, (ii) vertical injection and horizontal production wells, and (iii) horizontal injection and horizontal production wells. Base experiments were run with water only and carbon dioxide alone and optimum rates for WAG process were determined. In CO2 injection experiments, vertical injection and horizontal production well configuration supplied a higher recovery (15.06% OOIP) than that of the others. Horizontal injection and horizontal production well configuration gave poor recovery with the same gas rate, while vertical injection and vertical production was better off with a lower gas rate. The volumetric ratio of the water and CO2 slugs ( WAG ratio) was varied 1: 3 to 1: 10 in order to determine optimum conditions. For water alternating gas injection case at a WAG ratio 1: 7, vertical injection and vertical production well configuration gave the highest recovery (21.04% OOIP). Waterflooding reached the best recovery (37.20% OOIP) in vertical injection and vertical production well configuration. Oil production from WAG injection is higher than that obtained from the injection of continuous CO2 or waterflooding alone.