The compact finite-element model (CFEM) method has been used to model the transient EM (TEM) response of an earth model consisting of a heterogeneous prism in a two-layered, conducting halfspace. The prism can be deformed to simulate any angle of dip and plunge without the effect of 'staircasing'. The present implementation of CFEM (program Samaya) allows for a horizontal-loop transmitter with arbitrarily oriented magnetic dipole receivers which may be on the surface or downhole. Samaya can be run on workstations or on augmented IBM PC-AT's (or clones).The use of Samaya should allow the TEM method to be used to solve a greater range of structural and target identification problems than is possible with existing interpretation aids. Having the ability to predict the TEM response of an expected geology means that surveys can be designed to yield optimum information. The program can also be used to validate hypothesized structural models against field data.The paper concludes with a discussion of the computed downhole TEM response of a dipping target.