During the field investigation of petroleum geology in the Nanpanjiang area of the southeastern Yunnan Province, China, liquid oil seepage in the Middle Triassic, Falang Formation was firstly discovered in Luxi County. The oil seepage extends to more than 12 km on the ground surface. The lithology of oil-bearing strata is black bioclastic micrite limestone. The oil indication is brown-black or brown -yellow liquid and heavy oil seepage, and occurs as impregnation, intercrystalline pores, dissolved caverns and fissures.