The present disclosure describes systems and methods for performing multi-level reservoir history matching. At least some illustrative embodiments include a method that includes generating a first history-matched model using at least one updated model parameter derived from one or more existing model parameters, generating a set of second history-matched models by applying a probabilistic inversion to the first history-matched model, and deriving a set of third history-matched models from the set of second history-matched models. The method further includes generating dynamic simulation realization sets using each of the set of third history-matched models, ranking each of the set of third history-matched models based at least in part on the dynamic simulation realization sets, and presenting a production forecast to a user based on the highest ranked third history- matched models.