The Lower Paleozoic shale in south China has a very high maturity and experienced strong tectonic deformation. This character is quite different from the North America shale and has inhibited the shale gas evaluation and exploration in this area. The present paper reports a comprehensive investigation of maturity, reservoir properties, fluid pressure, gas content, preservation conditions, and other relevant aspects of the Lower Paleozoic shale from the Sichuan Basin and its surrounding areas. It is found that within the main maturity range (2.5 %\EqRo\3.5 %) of the shale, its porosity develops well, having a positive correlation with the TOC content, and its gas content is controlled mainly by the preservation conditions related to the tectonic deformation, but shale with a super high maturity (EqRo[3.5 %) is considered a high risk for shale gas exploration. Taking the southern area of the Sichuan Basin and the southeastern area of Chongqing as examples of uplifted/folded and faulted/folded areas, respectively, geological models of shale gas content and loss were proposed. For the uplifted/folded area with a simple tectonic deformation, the shale system (with a depth[2000 m) has largely retained overpressure during uplifting without a great loss of gas, and an industrial shale gas potential is generally possible. However, for the faulted/folded area with a strong tectonic deformation, the sealing condition of the shale system was usually destroyed to a certain degree with a great loss of free gas, which decreased the pressure coefficient and resulted in a low production capacity. It is predicted that the deeply buried shale ([3000 m) has a greater gas potential and will become the focus for further exploration and development in most of the south China region (outside the Sichuan Basin).