The dip-logs of the horizontal well Da12-66 in the Daniudi Gas Field are used in the analysis of sedimentary setting, definition of the maximum earth stress and identification of fractures. The inter-well correlation is also performed by using the dip-logs of adjacent wells. The unconformity between the Upper and Lower Paleozoic in this wellblock is recognized. It is revealed that fractures and micro-fractures are relatively well developed in the Lower Paleozoic carbonates and the Upper Paleozoic Taiyuan Formation and the second and third members of the Shihezi Formation. The maximum horizontal principle earth stress is in the NE-SW direction. The sedimentary microfacies of the second member of the Taiyuan Formation and the second member of the Shanxi Formation are recognized. It is predicted that the second sand unit in the second member of the Taiyuan Formation thickens in the NE direction.