Reports on the first phase of a joint SADME/CSIRO/Delhi Petroleum research program studying hydrocarbon generation in the Cooper Basin, this being the petrographic evaluation of the hydrocarbon source potential of the Permian shales in certain wells in the Patchawarra Trough. 50 cuttings samples from formations below the Patchawarra Formation in 6 wells were subjected to maceral analysis of coals and dispersed organic matter (DOM). Most samples contained only 1% or less of DOM, which is inertinite-rich with a low exinite content. This suggests that the shaley sediments are unlikely to be good potential source rocks for generating hydrocarbons, particularly liquid hydrocarbons.