Organic rich shale units ranging up to 350 m in thickness with total organic carbon (TOC) values generally between one and ten per cent are present at several stratigraphic levels in the upper part of the Carpentarian Roper Group. Considerable variation in depositional environment is suggested by large differences in carbon:sulphur ratios and trace metal contents at different stratigraphic levels, but all of the preserved organic matter appears to be algal-sourced and hydrogen-rich. Conventional Rock-Eval pyrolysis indicates that a type I-II kerogen is present throughout.The elemental chemistry of this kerogen, shows a unique chemical evolution pathway on the ternary C:H:ONS diagram which differs from standard pathways followed by younger kerogens, suggesting that the maturation histories of Proterozoic basins may differ significantly from those of younger oil and gas producing basins. Extractable organic matter (EOM) from Roper Group source rocks shows a chemical evolution from polar rich to saturate rich with increasing maturity. Alginite reflectance increases in stepwise fashion through the zone of oil and gas generation, and then increases rapidly at higher levels of maturation. The increase in alginite reflectance with depth or proximity to sill contacts is lognormal.The area explored by Pacific Oil and Gas includes a northern area where the Velkerri Formation is within the zone of peak oil generation and the Kyalla Member is immature, and a southern area, the Beetaloo sub-basin, where the zone of peak oil generation is within the Kyalla Member. Most oil generation within the basin followed significant folding and faulting of the Roper Group.