LAUSR

Abstract Recent drilling data from the northern Songliao Basin reveal considerable hydrocarbon exploration potential in deep-seated small-scale faulted basins. In this paper, the Shahezi Formation of the northern Xujiaweizi Fault Depression within the Songliao Basin was investigated as a case study. Sequence stratigraphy, sedimentary systems and the hydrocarbon exploration potential of the small-scale faulted basin were investigated through observations and descriptions of cores; analyses of conventional log curves, imaging data and logging data; and interpretations of 3-D seismic profiles. Four third-order sequences, mainly controlled by sediment supply and fault activity, were identified based on unconformities at the basin margins and in sedimentary successions. System tracts in the third-order sequences were also recognized through lithological associations and geophysical response characteristics. The distributions of sedimentary systems, including fan deltas, braided deltas, lacustrine deposits, subaqueous fans, volcaniclastic deposits and incised-valley deposits, in the sequence framework are associated with basin evolution. During the early stage of the Shahezi Formation (SQ1 and SQ2), the sedimentary area was mainly covered by fan deltas, and lacustrine deposits were not very developed. Additionally, incised-valley systems formed on basin margins and subaqueous fans formed along basin-controlled faults. During the middle stage (SQ3), fan delta deposits on gentle slopes were gradually replaced by braided delta deposits, and the sizes of lacustrine facies increased with basin expansion. In the late stage (SQ4), the basin and lacustrine deposit areas reached their maximum sizes, and braided deltas became the dominant sedimentary systems on gentle slopes. With continuous sediment supply, fan and braided deltas migrated forward, and the lacustrine system was locally distributed. In this small-scale faulted basin, the lacustrine mudstones and coal seams widely developed in SQ4, especially in SQ4-HST, and they also exhibited good source rock properties for gas generation. Sandbodies of fan deltas and braided deltas in the upper Shahezi Formation, exhibiting good contact relationships with underlying source rocks, can be favourable reservoirs for hydrocarbon accumulation, as confirmed by the newly drilled Well Songs9H (with a daily gas production of 20×104 m3). However, due to low porosity and permeability (averages of 4.7% and 0.28×10−3 µm2, respectively), these reservoirs may need fracturing for commercial hydrocarbon production.