There are numerous mud volcanoes found in the southwestern Taiwan. The erupted gas from the mud volcanoes is thermally mature. The gas cuts from several wells drilled in the Ping-tung plain also showed thermal maturity indicating a rich hydrocarbon potential in the area. Seismic data from the area showed a belt of mud dirpir structure extending northward from Liuchiu-hsu to Fungshan anticline. Well FS-1 was drilled into the mud core with high pore pressure below 1,597 m. Although there were abundant gas cuts from Well FS-1, well test results proved uneconomical.We suggest a new well be drilled into the up-dip sand bodies surrounding the mud dirpir to evaluate the natural gas potential in the mud volcano area.