Abstract: The invention provides a method for recovering hydrocarbons from a subterranean production interval while reducing the percentage of water produced. A lateral well is drilled from an existing primary well. A submersible pump is deployed to a position in the primary well below the intersection with the lateral well. The pump injects the separated water into the production interval through the primary well, at a rate sufficient to allow the gravity separation of the hydrocarbons and water in the area above the submersible pump. Suitable submersible pumps include an electric submersible pump, a cavity pump and a rod pump. One or more lateral wells may be used. The lateral wells can intersect the same production interval as the primary well or can intersect an unconnected production interval.