Abstract: The Liaohe Basin is a down-faulted basin of the rift valley type.In the course of development of the rift valley when rapid sinking of the basin and intensive uplifting of the surrounding mountains occurred,weathered materials from the denudated areas poured directly into the deep lake basin along the slope as turbulent flow deposits that formed turbidites as has been identified thrpugh studies of paleoecology,struotural sequence,grain size combination and petrography.The turbidites consist of two EW trending systems controlled by the source of materials supply on the two sides.They may be classified into fault-trough type,fault-valley type and canyon type,distributed in three main zones of slump facies,proximal facies and distal facies.The principal oil bearing zones are at the junction of the slump and proximal facies zones and in most part of the proximal and distal facies zones.In the vertical section,the reservoirs are chiefly in the middle and upper parts of the sandstone formation.As the reservoirs are at places enclosed by source rocks with abundant oil supply,they may be highly prolific locally.Judging from the trend of turbidite development,we may expect to find oil pools to the south of Huanxiling,Shuangtaiz and Qingshui etc.