High shale oil and gas flows are found in Lower Jurassic shale interval in Yuanba District. Gas production of horizontal well with shale gas in Qianfuya Formation is stable with oil and gas. The production of vertical well in Ziliujing Formation Daanzhai interval is up to 21×104 m3/d. This paper analyzes shale gas characteristics and exploration achievements. It is considered that the shale in Yuanba District is mostly developed in shallow lake and semi-deep lake sedimentary facies belts and has the characteristics of large thickness, high abundance of organic matter, good type of organic matter, moderate thermal evolution degree, good reservoir properties, good gas bearing property and compressibility, which are good conditions of shale gas accumulation and development in this area. Sedimentary facies control the distribution of organic-rich shale. Lithofacies control the physical properties and compressibility. Fracture and overpressure control high production of shale gas. The standard of favorable area for continental facies shale gas is established, which are semi-deep to lake-shallow sedimentary facies belt, dark shale thickness is not less than 30 m, TOC is not less than 1%, Ro is not less than 1.1%, porosity is not less than 2%, gas content is not less than 0.5 m3/t. Depth is from 500 to 4,200 m with fractures. Formation pressure coefficient is not less than 1.3.