The Matakan Unit of New Ireland, Papua New Guinea is a highly fossiliferous lagoonal deposit containing numerous coal pods and lenses. The unit is strati graphically part of the massive reefal Lelet Limestone of Miocence age. These organic-rich sediments have a high hydrocarbon potential as evident from microscopical observations as well as Rock- Eval pyrolysis data. The coal is varied in regard to dominant macerals, vitrinite being predominant in some parts and pollen and spores present in sufficient proportions to constitute a cannel coal elsewhere. The highly fossiliferous carbo as Rock-Eval pyrolysis data. The coal is varied in regard to dominant macerals, vitrinite being predominant in some parts and pollen and spores present in sufficient proportions to constitute a cannel coal elsewhere. The highly fossiliferous carbonaceous sedimentary rocks associated with the coal are rich in pyrite expressed in the sulphur content (19.7 - 22.8%). A high primary productivity and anoxic sediment pore waters or just above sediment - water interface have given rise to sufficient organic matter accumulations to yield a potential hydrocarbon source rock._x000D_
Atomic H/C ratios of the coals are between kerogen type III and type II mainly, expressing the mixed nature of the coal and that of the associated sediments is type II._x000D_
Early generated hydrocarbons (exsudatinite) have formed from pollen exines filling the pollen cavities and in places filling micro- fissures in the surrounding vitrinite.