The aim of this study was to attempt to correlate the Sawpit Sandstone sequence of the Pretty Hill Formation along the flank of the Penola Trough in both South Australia and Victoria. The main outcome was to add to existing knowledge by incorporating new information from recent drilling results, palynological research and seismic interpretation to further understand the depositional history and stratigraphic correlations for reviewing the prospectivity of the oil fairway throughout this part of the Otway Basin. This study and reinterpretation of the Jurassic and Early Cretaceous syn-rift sediments along the flank of the Penola Trough has taken into consideration pre-existing work in the South Australian PEL 27 area, undertaken by Davids and Doyle (1997) and Santos’ correlative work in the Victorian permit PEP 160 (formerly 119). Drilling results from all wells drilled along the flank in PEL 32, 27, 83, PEP 160 was used along with new information gained particularly from Jacaranda Ridge 1 allowing a new approach to the stratigraphic correlation to be made. New palynological studies undertaken in the Penola Trough by Peter Price in 2000 were also incorporated into the studies along with the historical data provided by Roger Morgan and Nigel Hooker in the 1990’s.