The Bureau of Mines investigated the influence of a free gas saturation on oil recovery by water drive. A digital computer was used to calculate the combined oil recovery from solution-gas drive to various states of depletion. Results of these calculations are compared and optimum conditions for the maximum oil recovery are found for various fluid-rock systems. For most of the fluid-rock systems, the calculations show an optimum gas saturation other than zero. Using fluid and rock properties as parameters, graphs are plotted showing the optimum gas saturation and increase in oil recovery brought about by the gas saturation. The effects of fluid properties and relative permeability on the optimum gas saturation are seen in these graphs. The graphs can be used as guides in connection with other considerations in determining the optimum time to start a waterflood. They should also be helpful in determining the mer of a water-drive reservoir. The effects of compressibility and solubility of the trapped gas saturation are investigated for select cases using a backward difference scheme to solve the partial differential equation of three-phase flow. From these calculations, it is observed that some benefit of a gas saturation remains for injection pressures up to 1.5 Times the original bubblepoint pressure.