Hi Ichiro,
Thanks for posting your question.
The origin of the coordinate system is at the "lower left" corner of the domain, with the vertical coordinate being positive upwards (see Section 4.1, bullet point 2, and similar descriptions in section 2 and 3). I.e., the relevant point for your question is that the datum for the vertical coordinate is the lowest point of the reservoir. Thus T=70 at the lowest point of the reservoir, and decreasing upwards according to 25C per km.
The temperatures are motivated with reservoirs below the North Sea, where the temperature at the sea floor is a few degrees C, thus mean temperature of around 55C is consistent with reservoir at about 2km depth below the sea floor.
Hope this clarifies your question,
Jan