In the early stage of the oil exploration and development in the northwestern margin of Junggar basin, it was realized that large-scale faults controlled the reservoirs boundary and distribution. However, during the oil development stage, the important role of small and micro-faults in the distribution of oil began to emerge. According to production dynamic analysis, micro-faults play an important role in the oil production dynamics and residual oil distribution. It reflected the difference of reservoir property distribution along the fracture, water displacement efficiency, oil and water motion space, boundary of injection-production, and so on. It was thought that comprehensive use of various data was the foundation of fine description of reservoir and improvement of recovery degree.