Abstract: The hydrocarbon exploration practice of the Hetaoyuan Formation in the Nanyang Sag indicates that the hydrocarbon distribution is controlled by “source-potential-facies-migration”, that is, the coordinated control of source rock, fluid potential, geologic facies and migration channel. The effect of “source control” reflects near source-controlled reservoir, the effect of “facies control” reflects high porosity and permeability, and superior facies-controlled reservoir, the effect of “potential control” reflects low interfacial potential energy-controlled reservoir, and the effect of “migration control” reflects fault and dominant sand body-controlled reservoir. According to typical oil and gas reservoir analysis, the hydrocarbon controlling pattern of the Hetaoyuan Dormation in the Nanyang Sag is “near source-low potential-superior facies” one, and hydrocarbon mainly distributed in the middle-high potential and middle facies area, as well as the middle potential-superior facies area. After meeting faults, hydrocarbon migration presented an alley lateral migration pattern in obtuse angle direction and concentrated in positive fault blocks. It is predicted that hydrocarbon accumulation in the He-3 member of the Baiqiu area is better than that of in the Weigang area, which is considered to be a favorable exploration area in the next step.