A new approach, condensed gamma curve, that is appropriate for stratigraphic division and correlation of exploratory wells in continental basins is proposed in this paper, and has been applied in the southern Turgay basin. The condensed gamma curve is compressed vertically and magnified transversely to show curve dislocations and the natural segmentations. Natural segmentations are determined based on trend continuity of condensed gamma curve and other logging information, and are verified by bed boundaries on seismic profiles. Analyses reveal that each natural section corresponds to "group formation", and practically presents a sedimentary cycle related to tectonic subsidence and A/S configuration. And its boundary coincides with the stratigraphic dividing line on seismic profiles, and practically represents stratigraphic overlap, denudation, and the next deposition or change in sources.