Some blocks of a continental sandstone oilfield in China have entered the ultra-high water cut late development stage. The proportion of fracturing and refracturing in production wells has gradually increased, making well and layer selection for measures increasingly difficult, with the measure space gradually narrowing. Conventional measures can hardly meet the current development needs. The hydraulic deep penetration technology opens windows in the pay zone, and uses the hydraulic rock-breaking effect of high-pressure jets to directionally drill multiple small boreholes with a diameter of 2–5 cm and a length of up to 100 m in different directions and depths of the reservoir. This increases the drainage radius of the original wellbore to expand the drainage area. The technology can be used for production enhancement of oil wells, improving production and recovery efficiency while reducing water cut. This paper statistically analyzes the fracturing effect of Class III reservoirs in Block N, determines the relationship between initial daily oil increment and measure validity period, compares it with the hydraulic deep penetration technology, proposes a scheme optimization method to further improve measure effectiveness, tap the remaining oil in fault edges and injection-production flow lines, and broaden the potential tapping space.