This paper presents the development and application of the inverse model that can generate the optimum distribution of permeability and porosity by matching the production data (bottomhole pressure) applying the Simulated Annealing algorithm. From the results of the feasibility study and the sensitivity analysis, if the maximum perturbation value was large, the fitness was improved highly at early stage of the optimization, but its improvement was smaller and smaller after middle stage. It was found that the appropriate size of the maximum perturbation value is required to escape from the local optimum. In the case of the maximum perturbation value for permeability of 1% and porosity of 2%, the maximum fitness was calculated to 0.00449 and the optimum distribution of porosity and permeability were generated. The pressure matching result showed the RMS error of pressure was 0.74 psi and the average relative error was 0.036% at all producer, which means the developed model was quite valid. Finally, the comparison of the result performed by GA with this research showed that SA was similar to GA.