Geological exploration plays a fundamental and crucial role in geological engineering. The most frequently used method is to obtain borehole videos using an axial view borehole camera system (AVBCS) in a pre-drilled borehole. This approach to surveying the internal structure of a borehole is based on the video playback and video screenshot analysis. One of the drawbacks of AVBCS is that it provides only a qualitative description of borehole information with a forward-looking borehole video, but quantitative analysis of the borehole data, such as the width and dip angle of fracture, are unavailable. In this paper, we proposed a new approach to create a whole borehole-wall cylindrical panorama from the borehole video acquired by AVBCS, which provides a possibility for further analysis of borehole information. Firstly, based on the Otsu and region labeling algorithms, a borehole center location algorithm is proposed to extract the borehole center of each video image automatically. Afterwards, based on coordinate mapping (CM), a virtual coordinate graph (VCG) is designed in the unwrapping process of the front view borehole-wall image sequence, generating the corresponding unfolded image sequence and reducing the computational cost. Subsequently, based on the sum of absolute difference (SAD), a projection transformation SAD (PTSAD), which considers the gray level similarity of candidate images, is proposed to achieve the matching of the unfolded image sequence. Finally, an image filtering module is introduced to filter the invalid frames and the remaining frames are stitched into a complete cylindrical panorama. Experiments on two real-world borehole videos demonstrate that the proposed method can generate panoramic borehole-wall unfolded images from videos with satisfying visual effect for follow up geological condition analysis. From the resulting image, borehole information, including the rock mechanical properties, distribution and width of fracture, fault distribution and seam thickness, can be further obtained and analyzed.