Porosity and water saturation are the most critical and fundamental parameters for accurate estimation of gas content in the shale reservoirs. However, their determination is very challenging due to the direct influence of kerogen and clay content on the logging tools. The porosity and water saturation over or underestimate the reserves if the corrections for kerogen and clay content are not applied. Moreover, it is very difficult to determine the formation water resistivity (Rw) and Archie parameters for shale reservoirs. In this study, the current equations for porosity and water saturation are modified based on kerogen and clay content calibrations. The porosity in shale is composed of kerogen and matrix porosities. The kerogen response for the density porosity log is calibrated based on core-based derived kerogen volume. The kerogen porosity is computed by a mass-balance relation between the original total organic carbon (TOCo) and kerogen maturity derived by the percentage of convertible organic carbon (Cc) and the transformation ratio (TR). Whereas, the water saturation is determined by applying kerogen and shale volume corrections on the Rt. The modified Archie equation is derived to compute the water saturation of the shale reservoir. This equation is independent of Rw and Archie parameters. The introduced porosity and water saturation equations are successfully applied for the Ordovician Goldwyer formation shale from Canning Basin, Western Australia. The results indicate that based on the proposed equations, the total porosity ranges from 5% to 10% and the water saturation ranges from 35% to 80%. Whereas, the porosity and water saturation were overestimated by the conventional equations. The results were well-correlated with the core-based porosity and water saturation. Moreover, it is also revealed that the porosity and water saturation of Goldwyer Formation shale are subjected to the specific rock type with heterogeneity in total organic carbon total clay contents. The introduced porosity and water saturation can be helpful for accurate reserve estimations for shale reservoirs.