VSP data are usually acquired in order to obtain high-resolution image
s of complex structures in reservoirs and near boreholes. We present a
n elastic iterative migration scheme which has few limitations regardi
ng the complexity of the geology, and where the macromodel for both P-
and S-wave velocities is automatically improved and updated at each i
teration. We avoid wavefield separation (up/down and P/S) and the simp
lifying assumptions of small dips underlying most such methods. The mi
gration scheme is based on elastic inversion theory. The wavefield ext
rapolation is based on a high-order, coarse-grid, finite-difference so
lution to the elastic two-way wave equation. At each iteration, the ma
cromodel is updated using a gradient method, in which the gradient is
computed by correlation of forward-modelled fields with back-propagate
d residual fields. The first iteration of the migration scheme is equi
valent to elastic reverse-time migration with an imaging condition sim
ilar to Claerbout's principle. Both P- and S-wave reflections contribu
te to the images. In numerical examples with both synthetic and real o
ffset VSP data, we find that increasing the number of iterations impro
ves the image quality. Images based on both P- and S-wave energy give
more near-well information and higher spatial resolution than images o
n only acoustic energy. In the real data example we show that the iter
ative migration scheme can image a relatively complex geological struc
ture. A fault and a small graben intersecting the well can be identifi
ed.