Horizontal well with fracture has become one of main methods to exploit ultra-low permeability. In order to gain the in-depth knowledge of the effect of fracture parameters and seepage pattern on horizontal well productivity, a nonlinear flow mode optimizing the fracture parameters has been established based the actual case of horizontal well exploitation in Daqing Peripheral Oilfield. The nonlinear flow theory is applied to the mode and the optimization results are provided under the constant condition of both horizon length and fracture length. The fracture number and fracture intervals have a significance impact on exploitation effect. The larger fracture number is, the more obvious the effect of fracture intervals is. However, as number of fractures exceeds three, the effect of fracture intervals is reducing. Contrast to the characteristics of nonlinear flow with that of Darcy flow, the former has the lower productivity, higher remaining oil saturation, and higher water cut as soon as water is produced. In the nonlinear flow model, pressure isopleths are concentrated, pressure gradient is higher, and energy consumption is larger around the area of wellbore and injection-production line. Horizontal well has bigger pressure gradient, however, it is smaller than that for vertical well. The permeability in nonlinear flow model is directly proportional to pressure gradient.