Abstract: The Xiao33, 35 block is a typical faulty block in Liaohe Oilfield with a number of retainable reserve, whose geology characters is very complex, and whose recovery is low and whose production effect of vertical well is poor. In order to improve the production effect of the faulty reservoir, the two-branch multi-lateral well- xiao35-H1Z was designed for its technology advantage of the second development. At the basis of fine description of reservoir and strict arrangement and well site drilling, the reasonable well drilling and completion technology is put into application to solve the difficulty in work. By integrated geology and engineering effectively, the two-branch multi-lateral well is successfully fulfilled with 100 percent oil layer penetration, which is at present with the deepest target zone, and the longest horizontal section, and the most complicated technique multi-lateral well in CNPC. The remarkable economical benefit and development effect are gained with initial production of 140 tons per day which is 6 to 8 times of the vertical well’s production in the same block. The perfect economic and social benefits are gained. It’s believed that the application of this technology will provide favorable guiding role and reference for the development of same faulty reservoir in the world.