In a pumping-well buildup test, computation of bottom-hole pressure (BHP) and flow rate (BHF) requires the use of a two-phase flow correlation for estimating the gas void-fraction or holdup along the pipe length and shut-in time. Various correlations are available to perform this task. The purpose of this work is to review these two-phase correlations and to provide an objective evaluation. This analysis is necessitated by the fact that considerable differences in BHP and BHF may occur—depending upon the correlation used—in wells with long pumping liquid columns or those that have high gas/liquid ratio production. Consequently, a potential exists for obtaining different reservoir parameters from transient interpretation. Using laboratory data for two-phase flow in annular geometry, relative strengths of these correlations are explored. Our own data and those of others (a total of 114 points) are used in this comparative study. For static liquid columns, the correlations of Hasan-Kabir, Gilbert, and Podio et al. provide acceptable agreement with experimental data, exceptions being the Godbey-Dimon and Schmidt et al. correlations. In contrast, for the moving liquid column scenario, as in a buildup test, the Hasan-Kabir model provides the best agreement with the dataset used in this work. A basis for smoothing the bubbly/slug transition boundary is given for the Hasan-Kabir method, together with a field example.