Based on the study of reservoir forming conditions such as source rock conditions, reservoir cap rock conditions and transport system in Liutuan area, five types of gas reservoirs are mainly developed in this area: roof type fault block gas reservoir, fault nose structural gas reservoir, fault block layered gas reservoir, fault lithology pinch out gas reservoir and oil ring layered gas reservoir. Combined with the reservoir forming model, it is confirmed that the fault system and caprock conditions are the main controlling factors of the natural gas reservoir forming in this area. Itis pointed out that the main direction of natural gas exploration in this area is the downthrow of Liunan fault and the south of Liutuan fault. The main direction of natural gas exploration in this area is to look for the gas reservoir in Kong2 next to Liunan fault, and the main way of the downthrow of Liutuan fault is to look for the lithologic and structural lithologic gas reservoir in the middle and upper sub members of kong1.