Abstract: In dealing briefly with the geological development of the Shan-Gan-Ning district, the paper lays particular emphasis on the geological aspects of the erosional landform at the close of the Indo-Chinese stage when the topographic relief was greater than 300 meters and a big branching river system was developed. Such a landform left a notable impact on the sedimentary overburden of early Jurassic. It restricted the distribution of the sandstone facies zone and the river system at the bottom of Jurassic and resulted in the occurrence of many compaction structures or buried-hill structural group. And it is this kind of buried-hill structures coupled with favourable lithologic conditions that determine the oil and gas field distribution in the Jurassic of this area and may serve as the direction in the search of oil. From the point of view of paleogeomorphology, the buried-hill compaction structures in the hilly land along the river banks in front of the mountainous region are the loci for the accumulation of oil and gas.