In this paper, a novel model to investigate leakage of gaseous working fluid in pressured devices with lubricating oil was created with lattice Boltzmann method and Shan-Chen multi-phase model. A method to adapt actual pressure-density relation into the lattice via a self-adapting timestep and simplify the simulation of compressible fluid was developed. A model to simulate two-phased leakage with lubricating oil was created with a combination of Shan-Chen model and passive scalar model. The model can realize the phase distribution simulation in the leakage field without causing the pressure and the inter-phase interactions to overlap. This model is also able to be combined with other multi-phase models. After a group of preliminary tests of the model, the characteristics of phase distribution and leakage were investigated qualitatively. Five types of phase distribution in the simulation results were classified, which are: uniformed distribution, sphered drips, gas channel, blocked channel, and slug bubbles. The results of simulations show good conformance with actual leakage patterns. Preliminary discussions about the leakage features are made upon the results. However, these simulation results are only qualitative and cannot show the quantitative features in leakages. More experimental investigations should be carried out to realize correlations to the model.