This article analyzes the key controlling factors and hydrocarbon distribution rules of lithologic reservoirs in a continental downfaulted basin according to the structural features, sedimentary evolution, types of sedimentary facies, source rock features, diagenesis evolution, reservoir features, hydrocarbon formation mechanisms, exploration status, and hydrocarbon resource potential. The results show that three major controlling factors (sandbody types, effective source rocks, and effective reservoirs) and one coupled factor (fractures that act as a tie) influence hydrocarbon accumulation in the lithologic traps in the Nantun Formation in Tanan Sag. With the increase in depth, sufficient hydrocarbon is generated in the source rock with thermal evolution. When the depth threshold is reached and critical conditions of hydrocarbon supply are met, hydrocarbon generation and expulsion are more intensive. Traps that are surrounded or contacted by source rock or connected by faults are able to form reservoirs. As the buried depth increases, the intensity of hydrocarbon generation−expulsion grows, and the trap is more petroliferous. Hydrocarbon accumulation and reservoir formation are also controlled by sandbody accumulation conditions. When the critical conditions for hydrocarbon generation are met and concrete oil and gas are charged in, the better physical properties of the sandbody will always indicate more hydrocarbon accumulation in the trap. The allocation of sand type, effective source rock, and an effective reservoir is optimized under the effect of fractures and the coupled hydrocarbon reservoir with these three elements.