The Purni, Peera Peera and Poolowanna Formations were evaluated in terms of depositional and structural basin analysis using the model of Genetic Increments of strata (GIS). Eight reservoir intervals have been identified and the pertinent reservoir facies and reservoir porosity intervals mapped. This study demonstrated that the reservoir porosity must be measured in these reservoir intervals, which have been interpreted in terms of lithologic facies units, instead of throughout the formation. The best sandstone development occurs within the channel belts of each lithologic unit. The high energy channel belts which occur in the distal and eastern flank parts of the Poolowanna Trough are the most prospective zones in the Peera Peera and Poolowanna Formations, where the porosity exceeds 9% (porosity threshold). Syn-depositional structuring and early faulting are the most important control for development of channel sandstones, which have been interpreted on the basis of palaeogeography of each reservoir lithologic unit. The Poolowanna Formation is the principal reservoir target. It has potential t o generate liquid hydrocarbons in the distal portion of the Poolowanna Trough, where thermal maturity reaches 0.84% Ro max (intensive oil generation zone). Primary porosity reduction is universal in the Pedirka Block, but secondary porosity may have been created by the preferential leaching of the lag sediments and unstable components in the coarser grained sandstone of the high energy channel belts.