Abstract: Under the effect of neotectonic movement at last stage of Neogene, the whole sedimentary center of Qaidam Basin migrated from west to east, and so the Quaternary system was generated in Sanhu Area. The world's largest biogas field was discovered in the system. In the past few years, lithologicgas reservoirs have been discovered in the system, which pioneered a new field for natural gas exploration in Sanhu Area. By evaluating the basic geological background for the generation of lithologic gas reservoirs in terms of tectonic settings, gas source conditions, and source-reservoir-caprock assemblage, on the basis of simply reviewing the exploration course, this paper analyses the geological and seismic features of the lithologic reservoirs. In view of the features of lithologic reservoirs, this paper puts forward the research method for precise seismic data processing, precise isochronic stratigrahic framework correlation, and precise gas bearing test, providing technical support for further exploration study in lithologic reservoirs of the Area

Key words: Sanhu Area, Quaternary, lithologic gas reservoir, gas bearing test