Abstract: Based on the high-density sampling, the new method and technology of geochemical exploration, which is integrated of the technology to directly detect oil and gas existing in the soil and the technology to extract the soil-absorbed hydrocarbon, is used in progressive exploration and development of the shallow-layer Dawanqi Oil and Gas Field. Application of the modern oil geological theory – the new method for analysis of the oil-generating system, combined with oil and gas prediction based on the abnormalities from geochemical exploration of structures – makes the successful rate of exploration wells rise significantly and the production of oil fields jump rapidly. This method is indicated to have a promising prospect for application in exploration of the shallow-layer oil and gas fields.