The discovery of natural gas trapped in the late Neogene Shizigou Formation in the Yikeyawuru anticline indicates the potential for additional microbial gas reservoirs outside of the primary exploration targets for microbial gas in the younger, i.e., the Pleistocene sediments of the Qaidam Basin. In this study, a detailed investigation is presented on the bulk geochemistry and organic petrography of the potential microbial source rocks as well as on molecular organic geochemistry of the solvent extracts obtained from the late Neogene Shizigou Formation of the Yiliping Depression. The objectives are to elucidate i) the depositional environment, ii) biological sources of organic matter (OM), and iii) biodegradation levels in these microbial gas source rocks.The samples from the well situated at the center of the Yiliping Depression (the H 1 well) exhibit minor variations in total organic carbon (TOC) and total sulfur contents, whereas the samples from the well located at the margin of the depression (the Y 3 well) show large variations in these values. All these samples are presently thermally immature. The kerogen of the TOC-rich Y 3 well samples is mainly composed of mixed types II–III kerogen and characterized by a complex maceral composition (i.e., a mixture of large fragments of huminite, semifusinite, fusinite, resinite/fluorinite, lamalginite, and liptodetrinite). In contrast, samples from the H 1 well contain typically type III kerogen with a less complex maceral composition consisting of huminite, lamalginite, and liptodetrinite. The molecular data illustrates that the OM is predominantly derived from bacterial and algal biomass as well as aquatic higher plants (primarily in the Y 3 well samples), while angiosperms are the primary source of the subordinate terrestrial OM in the samples. The marginal area is characterized by salinity levels akin to normal marine conditions with bottom-water paleoredox conditions ranging from dyoxic (samples with high TOC content) to oxic, whereas the central area developed a mesosaline environment with oxic bottom-water conditions prevailing. In contrast to the primary microbial gas producing layer, the Pleistocene Qigequan Formation, the late Neogene Shizigou Formation exhibits a higher contribution of emergent macrophytes but a reduced abundance of lower aquatic organisms in the OM as well as a higher salinity level in the water column. Despite the late Neogene Shizigou Formation demonstrating a lower potential for hydrocarbon generation and a lower degree of biodegradation of OM than the Qigequan Formation, it still shows generally favorable geological and geochemical conditions that are conducive to the development of microbial gas reservoirs, which is underscored by the biodegradation levels between 3 and 4 for the studied samples.
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