The Jixi Basin is located in the east of Heilongjiang Province, in which natural gas was found in 1985. It is a MesozoicCenozoic basin, with Cretaceous System and Tertiary System. The Lower Cretaceous is divided into Jixi Group and Huashan Group. Jixi Group contains coal as well as oil and gas. Dongrong Formation(K1d) has lots of dark mudstones deposited in indented lagoon. Coal and highly carbonaceous mudstones of marsh are rich in Chengzihe Formation (K1ch) and Muleng Formation(K1m). There is a good deal of deeplake mudstones in Yongqing Formation (E2y). The type and vertical distribution of source rocks were controlled by fill sequence. Porous reservoir has lower porosity and permeability, and fractured reservoir is dominant. Sourcereservoirseal assemblage is good. The gas of well blowout is from lower coalbearing strata (K1ch and K1m), and gas layer is at the middle of Muleng Formation reservoir. The caprock of thick mudstones and 4 tuff beds were located above the gas. Jixi Basin is a gasbearing basin. The prospecting for gas in Lishuzhen depression and oil in Pingyangzhen depression is suggested.