The mechanism of formation of lacustrine deposits within stable orogenic belts and their potential for shale oil and gas exploration are frontier themes of challenge in the fields of sedimentology and petro-leum exploration.Orogenic belts witness strong tectonic activities and normally cannot host stable lacus-trine basins and deep shale formations.Therefore,basins in orogenic belts are considered to have no potential to form shale hydrocarbon reservoirs.Here we investigate the Luanping Basin located in the Yanshan orogenic belt where previous studies regarded rivers and fan deltas as the major main Mesozoic deposits.Based on detailed field exploration and scientific drilling,we report the finding of a large number of lacustrine shale continental deep-water deposits in the Mesozoic strata.Our finding of the occurrence of active shale oil and gas also in this basin also subvert the previous perceptions.We report SHRIMP zircon U-Pb age that define the bottom boundary of the target interval as 127.6±1.7 Ma belonging to the early Cretaceous strata.Tectonics and climate are considered to be the main factors that controlled the deep-water sedimentation during this period.The drill cores revealed evidence of shale gas and the TOC of shale is 0.33％-3.60％,with an average value of 1.39％and Ro is 0.84％-1.21％,with an average value of 1.002％.The brittleness index of shale is between 52.7％and 100％.After vertical well fracturing,the daily gas production is more than 1000 m3.Our findings show that the basin has consid-erable potential for shale oil and gas.The geological resources of the shale gas in the Xiguayuan Fm.are estimated as 1110.12 × 108 m3,with shale oil geological resources of 3340.152×104t.Our findings indi-cate that the Yanshan orogenic belt has potential exploration prospect.This work not only redefines the Luanping Basin as a rift deep-water Mesozoic Lake Basin,but also rules out the previous notion that the basin is dominated by shallow water sediments.The discovery of shale oil and gas also provides an important reference for subsequent petroleum exploration and development in this basin.Our study shows that shale oil and gas reservoirs can be found in the lacustrine basins of orogenic belts which were strongly influenced by volcanism.These results have significant implications for the sedimentology and oil exploration in the Qinling and Xingmeng Orogenic Belts of China,as well as those in other terranes of the world including the New England Orogenic Belt in Australia.