Abstract: Yunnan is located on the juncture of two tectonic units,where the layers of every geological age are well developed. there are various types of rocks and complicated structures. Seperated by Jinshajiang River-Red River Fault, the East Yunnan (Dian Dong) and West Yunnan(Dian Xi) are completely different both geologically and geomorphologically. The Paleozoic stable marine desitional areas, the Mesazoic continental me dium-large hasinal areas and the Cenozoic, small-scaled hasinal areas are the hydrcarbon exploraion targets of Yunnan Province. Among them, the Couxiong Basin of East Yunnan is the most important basin for exploration, East three sets of source rocks and the overlying reservoir and cap rocks are found.

Key words: the Red River Fault, the intermountain dam aveas, the Cou Xiong Basin