Abstract: Yishu graben is a Cenozoic faulted basin,situated in the mid-eastern part of Heilongjiang province,the sedimentary formation of which is mainly continental Tertiary-Quaterna- ry system and the genetic source rock is lacustrine facies mud- stone.Study shows the mudstone quality of Dalianhe forma- tion in the Tangyuan faulted basin of Yishu graben is the best,and only one or two parent material can be up to typeⅠ-Ⅱ_A.For Fangzheng fault basin,however,Xin'ancun for- mation of Fang 3 well has the best mudstone quality and the similar parent material type with Dalianhe in Tangyuan faul- ted basin.The threshold depth for oil generation influenced by volcano is at 700～2000 m and the resource of oil and gas is 1.385×10~8～2.770×10~8 t and 150.7×10~8～299.5×10~8 m~3 in Tangyuan faulted basin,but in Fangzheng faulted basin the number is 800～1500 m and 0.853×10~8～0.942×10~8 t and 263.8×10~8～366×10~8 m~3 respectively.