In Andhra Pradesh, India in 2007 a sudden gas leakage was observed from the irrigation borewells. To investigate the subsurface structural features which leads to leakage of methane gas Magnetic studies, were carried out in this study area. Few analytical techniques like Horizontal, Vertical and Analytical gradients were applied to the data for delineation of structural features like faults/ fractures. Horizontal Derivative map shows that lateral extent of geological contacts/faults more accurately. From the Vertical Derivative map it is noticed that high anomaly represent sill body and a low indicates the presence of shales which is prevailing in this area. Analytical Signal contour map shows the closures “A, B & C” interpreted as highly magnetic bodies, sills. From all the analysis it is noticed that maximum borewells are located on the edge of the high and low anomalies.