A three-dimensional hybrid reservoir model representative of a fractured subterranean reservoir is created for simulating fluid flow. The model includes porous matrix blocks and a network of long fractures, which include two-dimensional fracture blocks, that ideally overly and are fluidly connected to the matrix blocks. To simulate fluid flow, matrix and fracture flow equations are obtained and effective fluid flow transmissibilities are determined. The matrix and fracture flow equations are then coupled via the effective fluid flow transmissibilities, such that they can be solved simultaneously for flow responses. The long fractures can be in direct fluid communication with one or more intersecting wells or other fractures. These intersections can be modeled as a point source to enhance numerical stability during simulation. The fracture characteristics, such as orientation, fracture aperture, fracture length, and fracture height, are more realistically modeled using this approach compared to previously known reservoir models.