Lishui-Jiaojiang Sag is the representative offshore superimpose rift-subsidence basin of China. Paleocene is identified as the main faulting period of the sag, which can be divided into four episodic rifting. There was lacustrine environment in the first episodic rifting, and then the sedimentary environment changed into marine environment. There are three groups of hydrocarbon source rocks and three sets of reservoir-cap assemblage. The lacustrine mudstone of Yueguifeng Formation has high abundance of organic matter, mainly belongs to the type Ⅱ, has good potential of hydrocarbon generation, and is regarded as the main hydrocarbon source rocks of this area. Paleocene sandstone is the main reservoir of the sag, sandstone reservoirs of Lingfeng Formation and Yueguifeng Formation belong to the type Ⅲ and Ⅳ, sandstone reservoirs ofMingyuefeng Formation belong to the type Ⅲa and Ⅱb, reservoir property is changed by the top-sealing abnormal high pressure system. The reservoir-cap assemblage composed by the early faulted （fan） delta, lakeside and coastal sandstone together with the shallowsea mudstone of the top of Lingfeng Formation and the bottom of Mingyuefeng Formation has nice exploration potential, because the main hydrocarbon source rocks and the abnormal high pressure system approach the assemblage and there are favourable reservoir-cap configuration conditions. The favorable zones predicted are located above of the hydrocarbon
generating center of Lishui-Jiaojiang Sag, on both sides of the Lingfeng buried hill and the westen slope of West Subsag ofLishui Sag, and can be divided into three major categories and 11 favorable structure belts.