Simulation of numerical reservoir models with thousands and millions of grid blocks may consume a significant amount of time and effort, even when high performance processors are used. In cases where the simulation runs are required for sensitivity analysis, dynamic control, and optimization, the act needs to be repeated several times by continuously changing parameters. This makes it even more time-consuming. Currently, proxy models that are based on response surface are being used to lessen the time required for running simulations during sensitivity analysis and optimization. Proxy models are lighter mathematical models that run faster and perform in place of heavier models that require large computations. Nevertheless, to acquire data for modeling and validation and develop the proxy model itself, hundreds of simulation runs are required. In this paper, a system identification based proxy model that requires only a single simulation run and a properly designed excitation signal was proposed and evaluated using a benchmark case study. The results show that, with proper design of excitation signal and proper selection of model structure, system identification based proxy models are found to be practical and efficient alternatives for mimicking the performance of numerical reservoir models. The resulting proxy models have potential applications for dynamic well control and optimization. © 2017 Berihun M. Negash et al.