The upper Cretaceous-Neogene layers were widely distributed in North Jiangsu Basin and the formations were complete. In which, mud shale was developed in the second member of Taizhou Formation, the second member of Funing Formation and the fourth member of Funing formation, with a thickness of 100 - 250 m, and rich organic matters, and over 1.0% of the organic carbon, and high extent of evolution. Fine oil and gas indications were showed in the mud shale, demonstrating that North Jiangsu Basin was provided with geological conditions of oil and gas reservoir. Through analyses of fundamental petroleum geological conditions of upper Cretaceous-Neogene in North Jiangsu Basin, the authors pointed that in the deep areas of Jinhu Sag, Gaoyou Sag, Haian Sag and Yancheng Sag in North Jiangsu Basin were favorable zones of shale gas exploration and development.