Abstract: Well BG1 is a gas well in Bajiaoting structure in Pinghu oil/gas filed, and began to develop in Nov.2006.It has a high gas rate of 10×10⁴ m³/d at the beginning, but decline severely soon, and can't keep stable production rate even though P12 gas lay er has been perforated.Through comprehensive analysis of all data, the reasons for production rate decline of BG1 gas well include:reservoir's heterogeneity, retrograde condensation near the well, and incompatible formation water.broken down and fracturing scenarios have been put forward, and operation was conducted in Sep.2008 in well BG1, which have solved the pollution problem near BG1, and the gas production rate is up to 3.5×10⁴ m³/d.