Taking the Gaoshangpu-Liuzan geothermal field in the Nanpu sag of the Bohai Bay Basin as the research object, this paper discusses the geological conditions and potential of the geothermal resources of the Guantao Formation in the study area, and introduces the development practice of geothermal energy heating in Caofeidian. The average buried depth of the Guantao Formation is 1500–2500 m, the lithology is dominated by sandy conglomerate, and the average thickness of thermal reservoir is 120–300 m. The average porosity of thermal reservoir is 28%–35%, the permeability is (600–2000)×10−3 μm2, and the temperature of thermal reservoir is 70–110 °C. The formation has total geothermal resources of 13.79×1018 J, equivalent to 4.70×108 t of standard coal. Based on a large amount of seismic and drilling data from oil and gas exploration, this study carried out high quality target area selection, simulation of sandstone thermal reservoir, and production and injection in the same layer. The geothermal heating project with distributed production and injection well pattern covering an area of 230×104 m2 was completed in the new district of Caofeidian in 2018. The project has been running steadily for two heating seasons, with an average annual saving of 6.06×104 t of standard coal and a reduction of 15.87×104 t of carbon dioxide, achieving good economic and social benefits. This project has proved that the Neogene sandstone geothermal reservoir in eastern China can achieve sustainable large-scale development by using the technology of “balanced production and injection in the same layer”. It provides effective reference for the exploration and development of geothermal resource in oil and gas-bearing basins in eastern China.