The oilfield studied in this paper is a typical block bottom water reservoir. The whole oilfield is in a high water cut stage. Most wells are water-coning production wells, so the key to maintain a stable oil output in the high water cut period is how to control the water-coning . We take one well of the oilfield as an example, to study the nitrogen foam stabilizing oil production and controlling water cut technologies with the numerical simulation method to provide technical support for the process scheme implementation. On the basis of historical data matching, the injection and production parameters of the nitrogen foam stabilizing oil production and controlling water cut technology are optimized. The results show that the optimum injection and production parameters are as follows: continuous infiltration with injection volume of 45×10⁴ m³, gas-liquid ratio of 1:1, shutdown days of 3 days, and daily fluid production rate of 900m³/d.