For determining the location of provenance and direction of paleo-drainages, the authors investigated this key aspect of Guantao Formation in Raoyang Depression by combining mineral composition, lithic fragments characteristics, heavy mineral associations and distribution, and sand body distribution. The results indicate that there were four independent paleo-drainage systems. Finally, the central part of the depression  (Liulu area) is far away from source area to accumulate high-quality sandstone reservoirs and thick mudstone seal rocks, and is the most favorable area of exploration for oil and gas.