Abstract: The Permian sandstone in the Wumaying buried hill in Huanghua depression showed high-yield oil and gas flows and good exploration prospects in the Upper Paleozoic. According to the analysis to the characteristics of the coal-bearing source rocks, reservoirs, traps and hydrocarbon accumulation in the Upper Paleozoic formations, dominant reservoir conditions and the geological significance of the Permian sandstone condensate gas reservoir were clarified in Huanghua depression. Our study shows that: (1) the Carboniferous-Permian coal-bearing strata have stable distribution, large hydrocarbon generating potentials and highly thermal evolution, which provide sufficient hydrocarbon sources; (2) the thick Permian lower Shihezi Formation sandstone reservoirs remain higher porosity even after deeply buried, which provide good space for accumulating hydrocarbon; (3) the thrust nappe structures include several large anticlines and faulted noses, which are favorable space for storing hydrocarbon; (4) the faulting activities tended to stop when the neotectonic movement took place in the Wumaying buried hill, so it is conducive to preserving hydrocarbon reservoirs. The discovery of the Permian sandstone condensate gas reservoir confirmed the huge hydrocarbon generating potential of the Carboniferous-Permian coal-bearing source rocks, pointed out key exploration targets in the Permian lower Shihezi Formation, extended effective exploration to the Paleozoic sandstone reservoir at 5000 m, and greatly expanded the exploration scope inside the buried hill in the Huanghua depression.