A finite-difference, hydraulic fracture treatment simulator that computes fracture dimensions in a layered reservoir is presented. The model allows initiation of the fracture in multiple producing intervals simultaneously. This pseudo-three-dimensional model has been used extensively to study the effects of reservoir mechanical properties, particularly stress distribution, Young's modulus, and fracture toughness of the reservoir layers on the height of the fracture. The use of this model for different scenarios illustrates the effects of mechanical properties on fracture dimension and proppant transport. The propped fracture geometry is used in a single-phase finite-difference reservoir simulator to show the production increase and long-term production performance for different scenarios.