Original understanding of the fractures on the Jiamuhe Formation of Permian in Xiaoguai area can no longer meet the needs of the exploration and development. Based on the core observation and fracture parameter by log of 17 wells, more than 200 thin section identification of 14 wells, and the regional tectonic evolution, it is indicated that the fractures are regional structural fractures caused by a number of geological superimposed. According to the actual situation of the study area, comprehensive utilization of geological knowledge, tectonic stress inversion, coherence cube processing are used to recognize the distribution of fractures and numerical simulation is used to predict the fracture zone. It has showed that the fractures are mainly developed in G102-G5-G105, CP3-G103, G9, G13 and G3, C502-C67-C501.In general, the fractures distribute like flaky or fan-shaped.