A computation method was used for determination of time delay in phase space reconstruction based on first minimum of mutual information, which proved reliable by applying it to the example of the Mackey-Glass Equation and Lorenz ’s strange attractor data. The flow patterns of oil/water two phase flow were characterized by calculated correlation dimensions of chaotic attractor, it is shown that the dimensions calculated from fluctuating conductance signals of oil/water two phase flow had good correlation with water cut () ranging from 61% to 91% and total flow rate ranging from 10(m3/day) to 60(m3/day) for oil-in-water flow patterns. For water cut () of 51%, the dimensions showed irregular sudden changes to transitional flow pattern, it means that the dimensions of chaotic attractor is a sensitive “indicator” of oil water two phase flow pattern variations.