Tula basin was part of the Qaidam basin in Jurassic Period. The prototype of the Tula basin was a half-graben-type depression where the graben fault is located in the north and overlapped in the south. Because of the strike-slip movement of the Altyn fault zone in Cenozoic the existing structural configuration has been formed. There is very thick Jurassic dark-mudstone in the Tula basin, and the organic abundance is high. It is not only in the peak period of oil generation at present, but have the geological conditions to form oil-gas pool are ready in the Tula basin. The discovery of the mega-thick oil-bearing sandstone in Tula basin demonstrates that the Jurassic System in the Tula basin had generated a certain amount of hydrocarbon. So the Tula basin is a target oil-and gas-bearing basin with a great prospect for further exploration.