Abstract: The Sinopec prospecting area located in the slope belt of northwestern margin of Junggar basin is composed of the west?margin block and the north?margin 1 block, with simple structures, undeveloped fault scale, overlying?stripped and superimposed strata and far from the source rocks, so being of a great difficulty in petroleum exploration. On the basis of comprehensive researches, it is suggested that the studied areas are generally characterized by distal source supply of hydrocarbons. The Permian source rocks in the north?margin block are extended toward the north at the overthrust structural belt in Hala’alate mountain, while the west?margin block in Chepaizi is characterized by dual?source and dual?direction oil supply. Through analysis and evolution of the oil?gas transport or migration conditions, the distal?source hydrocarbon accumulation model by fault?blanket style of oil migration was established, and the main type of traps was verified. The updip pinch?out lithologic reservoir in reef?bar sand body in southern zone of Chepaizi swell and the stratigraphic?lithologic reservoirs in east of the swell and in south of the Hala’alate mountain were selected as targets for petroleum exploration, and the relevant matching technologies were proposed. Finally, the two oil?bearing areas of 1×108 t reserves have been discovered in Chepaizi area and Hala’alate mountain area for important exploration breakthrough