Reservoir permeability is a critical parameter for oil production estimation, exhibiting high spatial variability which suggests treatment as a random function. The present paper focuses on the study of steady state flow of a single phase fluid in a two-dimensional heterogeneous formation with random permeability characterized by a log-normal distribution with coefficient of variation \(\gamma _k\) and correlation length \(\lambda \) . The aim of this study is to determine the relationship between the flux variance \(\sigma _q^2\) and \(\gamma _k\) . Previously available analytical solutions to this problem have primarily relied on perturbation-based methods, which are approximate and applicable for relatively small values of \(\gamma _k\) . This study employs the Monte Carlo method to investigate fluid flow in reservoirs with stochastic permeability where \(\gamma _k\) ranges from 0.1 to 4.0. The results show that \(\sigma _q^2\) exhibits a maximum at a certain critical value of \(\gamma _k\) , denoted as \(\gamma _c\) . For highly heterogeneous formations \(\gamma _k > \gamma _c\) , this study shows that the fluid flux follows the Poisson distribution and flux variance is proportional to its mean value \(\langle q \rangle \) . Such behavior is characteristic of random variables that follow a Poisson distribution. It is well known that the Poisson distribution is a discrete probability distribution and this study shows that for the case \(\gamma _k > \gamma _c\) , a network of discrete preferential flow channels forms. Such channels are not associated with any extended geological objects like faults or fractures and are caused by a random medium. The possibility of detecting such channels is assessed through the analysis of pressure build-up curves. The process of water-oil displacement is also studied for the case of highly heterogeneous reservoirs. Water breakthrough time shown as a function of \(\gamma _k\) and \(\lambda \) illustrates the noticeable influence of the statistical characteristics of permeability on the oil displacement process, that can be used in history matching process.