Formation damage caused by drilling-fluid invasion, production, or injection can lead to positive skin factors and affect fluid flow by reducing permeability. When mud filtrate invades the formation surrounding a borehole, it will generally remain in the formation even after the well is cased and perforated. This mud filtrate in the formation reduces the effective permeability to hydrocarbons near the wellbore. It may also cause clays in the formation to swell, reducing the absolute permeability of the formation. In addition, solid particles from the mud may enter the formation and reduce permeability at the formation face.