The Jurassic Walloon Subgroup in the Surat Basin is a prolific source of coal seam gas (CSG) in Queensland. Production of CSG commenced from the fairway along the north-eastern basin margin, but despite decreasing unit-and net coal thickness of the Walloon Subgroup, exploration and production rapidly extended across to the Roma Shelf towards the Nebine Ridge in the west. This ridge separates the Surat and Eromanga basins, across which the Walloon Subgroup and the overlying Springbok Sandstone are correlated to transition into the Birkhead Formation and Adori Sandstone respectively. A regional lithostratigraphic model of the Walloon Subgroup based on wireline data, highlights westward thinning of the unit through pinching of the lower (Taroom) coal measures, and thinning or erosion of the upper (Juandah) coal measures by the overlying Springbok Sandstone. The dis-or unconformable surface represents a change in gradient within the basin, between the rising to stable base levels (the coal measures) and falling base levels, the timing and mechanisms of which are debated. This thesis tests the lithostratigraphic framework model of the Walloon Subgroup by providing alternative markers and trends within the coal maceral and carbon isotopic composition, coupled with vertical and lateral variation in the mineralogy and zircon provenance of the interburden strata. A petrographic and stable carbon isotope study of eight wells from east to west of the basin, records a transition from a wet, herbaceous marsh or fen environment during the deposition of the Taroom and Lower Juandah Coal Measures to a more arid system, as indicated by a characteristic oxidized material-rich (inertinite) signature of the Upper Juandah Coal Measures. In each well across the basin, the organic stable carbon isotopes show a positive excursion from the Lower to Upper Juandah CoalMeasures that sets in well before the increased inertinite content, followed by a shift to more negative compositions in coals interpreted to occur within the Springbok Sandstone. The positive excursion in organic stable carbon isotope composition represents a global trend, and in the Surat Basin, a shift to drier conditions, which ultimately could have caused a drop in regional base level and the creation of exposed surfaces, resulting in the Springbok unconformity. The δ 13 C trend including the positive excursion was applied as a tool to test the current lithostratigraphic framework of the Walloon Subgroup, and in particular, its relationship with the overlying Springbok Sandstone. On the Roma Shelf in the west, this positive excursion, as well as its turning point, occur within the Juandah Coal Measures, rather than across the Springbok Unconformity as observed in the east.