Abstract: The Well Yuli 1 is the first well which drills through Sinian System on the northeast margin of the Tarim Basin.This is on the significance to know reservoir-forming condition and to determine the favourable exploration targets of the Kongquehe palaeoslope area by drilling consequent analysis of the Well Yuli 1.The results of observation of core,the analysis of the rock sample component by electron microprobe's method,the pyrogenation analysis and the basin modeling comprehensive research show that the thermal evolution of organic matter of Cambrian-Lower Ordovician source rocks in the Kongquehe palaeoslope approach coal and the Cambrian-Lower Ordovician source rocks are not the capability of secondary hydrocarbon generation after its experienced one buried depth in its burial history.The main reservoir space of Cambrian-Lower Ordovician paleo-reservoir is crack and corrosion hole which were formed early period.Reservoir-forming characteristic in the Kongquehe is early reservoir-forming,self-generating and self-storing,one stage destroying,tow stage adjusting.By discussing the favourable exploration trap in the Kongquehe area,we get the following conclution: transverse nose-shaped trap is not favourable trap; the Lower Palaeozoic paleo-anticline is more better exploration trap and breaking-anticline;lithologic trap and unconformit trap is good exploration trap.