Northern Junggar Basin is a new area for oil and gas exploration.it can be classified as three first-order tectonic units:the Wulungu Depression

the Luliang-Sangequan Uplift and the Central Depression.The main source rocks in these units are the Sangonghe For-mation of the Lower Jurassic

the Baijiantan Formation of the Upper Triassic and the Fongchengcheng Formation of the Lower Permian

and they have reached mature stage.The conditions for the migration

accumulation and preservation of hydrocarbon are favourable in this area.The Shinan Uplift

the north part of the Lunan Depression and the Lunbei faultedfold zone located in favourable position are four prospective oil-gas ac-cumulation zones.Traps ready for drilling recently are the Shinan-3 anticline

Shinan-2 nose

the faulted-nose structure to the north of Lu-4 well and the Yanchi anticline.