The deposition system of Paleogene Dongying Formation in the well area of SZ36-1-A is restudied on the basis of a comprehensive analysis of stratigraphy sequence, palaeogeomorphology and sediment source. The research shows that the main oil-bearing segment is the lowstand system tract in Dongying Formation. The Liaoxi lower arch did not formed completely in this period. The water system could definitely inpour the well area of SZ36-1-A from the west through the fault accommodation zone. The new sedimentary facies achievements change the exploration situation which the reservoir did not develop relatively in this area and open a new exploration prospect in the well area of SZ36-1-A.