Sill intrusions may play a significant role in the development of petroleum systems in sedimentary basins by promoting maturation of source rocks, influencing fluid migration and acting as reservoirs, traps, and seals for hydrocarbon accumulations. Within this study, we present a novel approach to interpreting geophysical borehole data for a ca. 174 m thick sill from the Parnaíba Basin revealing new insights into both the emplacement mechanisms and impacts of the sill on hydrocarbon migration and trapping. High-resolution ultrasonic and microresistivity borehole image logs were integrated with conventional log data, petrography of eight side wall cores and total gas data recorded during drilling. The petrographic analysis revealed finer crystalline dolerite at the top and bottom layers of the sill while the upper central portion revealed coarser crystalline gabbroic facies, associated with anomalies in gamma ray, neutron porosity, sonic and geochemical log responses. From borehole image logs we interpreted key facies units including massive, fractured, cooling jointed and layered dolerite along with clear evidence for layers containing diverse inclusions interpreted as enclave structures. The integration and correlation of these data with analogue studies allowed the interpretation of gradational cooling with magmatic differentiation, partially melted host rock linked to sulphide production and organic matter maturation, mafic microgranular enclaves related to mingling processes of magma recharge, banding layers related to cumulate zones, and intense cooling fractures in the central sill body. An interval of ca. 44 m at the top of the sill with notably less jointing appears to be responsible for sealing the gas underneath, whilst the fractured central portion of the sill has enabled gas migration evidenced by increased gas signatures. In addition, this work also reveals for the first-time image log evidence for magma mingling and indications of assimilation and anatexis processes within the Parnaíba Basin. This study has important implications for improving the understanding of emplacement mechanisms of thick parallel layer intrusions and their implications for fluid flow in sedimentary basins worldwide.