The objective of this study was to select the proper drilling fluid type and composition for drilling stable holes through the problems of the selected formations. This study was performed on shale samples taken from 10 wells in which hole instability was encountered to various extents during drilling the Germav formation. Both ionic and polymer inhibitions were utilized in formulating the proper drilling for the Germav formation. Ionic inhibition was obtained using KCl and NaCl. Polyanionic polymer (Pac-L) was used for providing the polymer encapsulation. Experimental results indicated that KCl is superior to NaCl in providing ionic inhibition. Both salts lowered the interaction between the drilling fluid and Germav formation, but better results were obtained with KCl. Minimum salt concentration up to 15% yields more inhibitive environment. Polymer inhibition tests indicated that minimum Pac-L concentration required for maintaining the polymer inhibition was about 2 lb/bbl for both systems. In conclusion, KCl/encapsulating polymer system seems to be the most proper water: base drilling fluid available for Germav formation achieving the required wellbore stability. The fluid loss and suspending properties of the proposed system must be controlled using the modified starch and XC polymer.