Abstract: In order to further implement the development timing issue of CBM well area in Panguan Syncline and based on the previous geological data and 8 parameter wells drilled in recent years, the coal seam characteristics, hydrocarbon content and physical properties of the coal seams in Panguan Syncline were summarized. Through the Grey Correlation Analysis Method, the optimal parameters associated with the gas content, coal thickness, resource abundance, structural complexity, buried depth, permeability, and temporary storage ratio of the 8 CBM parameter wells were analyzed and then sorted according to their correlation. The results show that Panguan Syncline has large accumulated thickness of coal seams with high gas content and well-developed micro-pores, but it has high reservoir heterogeneity and low permeability for thin thickness of single coal seam. It is recommended to use PG1, PG3, PG2, PG4 as pilot test well areas for priority in development by using Grey Correlation Analysis Method. The remaining four wells are used as backup development well areas.