The main aim of this paper is to present some new and general results, ap plicable to the the equations of two phase flow, as formulated in geothermal reservoir engineering. Two phase regions are important in many geothermal reservoirs, especially at depths of order several hundred metres, where ris ing, essentially isothermal single phase liquid first begins to boil. The fluid then continues to rise, with its temperature and pressure closely following the saturation (boiling) curve appropriate to the fluid composition. Perhaps the two most interesting theoretical aspects of the (idealised) two phase flow equations in geothermal reservoir engineering are that firstly, only one component (water) is involved; and secondly, that the densities of the two phases are so different. This has led to the approximation of ignoring capillary pressure. The main aim of this paper is to analyse some of the consequences of this assumption, especially in relation to saturation changes within a uniform porous medium. A general analytic treatment of three dimensional flow is considered. Pre viously, three dimensional modelling in geothermal reservoirs have relied on numerical simulators. In contrast, most of the past analytic work has been restricted to one dimensional examples.