Abstract: Basic geological characteristics in Otway Basin of Australia have been described from regional tectonic setting sand depositional characteristics.Oil-gas accumulation conditions of the basin are discussed based on analysis of source rocks, reservoirs and traps.Oil-gas distribution features are summarized from flat sand layer series.As of the end of 2008, cumulative gas production in the basin was 124.5×10⁸ m³, the economic and sub-economic proven oil reserves is 2×10⁶ t, and the natural gas reserves is 350×10⁸ m³. Finally, the resource potential of the basin is evaluated and the favorable prospect area is predicted.