The reservoir of N1 section in Beizhong block is characterized by thin reservoir and poor physical properties. The experimental study of horizontal wells is carried out in order to raise the individual well production, to improve the used level of the reservoir, and to increase the contact area of the bore hole with oil layer. The geologic features of N₁ section are analyzed, and the practicability of horizontal well development is discussed. Combined with the typical Xi 3- Ping 1 well, the development and production of horizontal well in N₁ section are analyzed. The result shows that the output of a horizontal well is 3 to 4 times higher than the vertical well around, which provides foundation for the further development of horizontal wells.