Abstract: Bayanhaote basin, overlapping on the transitional zone between Helan aulacogen and Hexi corridor, is an oil and gas-bearing basin with special tectonic location and complex geologic conditions. The target, Carboniferous, is a set of coal measure mudstones of continental-oceanic interactive facies, the source rock consisted of coal measure mudstone, carbonaceous mudstone and coal stone have the characteristics of type Ⅲ kerogen and the hydrocarbon -generation capability of type ⅡB kerogen. Although the geologic conditions of the Silin--Azuoqi depressions in north of the basin are not quite the same as that of the thrust belt on the west margin of the neighboring Eerduosi basin, they have certain genetic relationship in respects of the aulacogen in the early stage, fracturing of thrust folds in the late stage and trap structures, thus the later can be used for reference. The key to selection of favorable. exploration targets and oil and gas exploration is further recognizing the structural features of the targets and attaching importance to basic geologic research of basin formation, hydrocarbon generation and reservoir genesis.