Abstract: Based on detailed summary and comprehensive analysison archaeozoic era buried hill inside lithology and reservoir characteristics in Liaohe oilfield Damintun depression Qianjin buried hill,this paper redefinied the identification criteria of lithology and reservoir. The affecting factosr analysis on res-ervoir capacity has shown that lithologic arrangement in the "dominant lithology" order determines the degree of reservoir development,generally developed mix rocks are good reservoir rocks,while gneiss and biotite granulite are worsereservoir rocks. Drilling fluid type,completion well type,as well as the late fracturing reformation has comparatively impact on reservoir capacity. In the paper suggested in the follow-up the development process,to apply horizental wellexploiting in the best of " dominant lithology" segment to gain high-yield oil and gas,and to apply vertical well fracturing exploiting in the relatively poor "dominant lithology"segment as well as having equal access to industrial capacity.