The Erlian basin group comprises tens of relatively concentrated yetseparated small basins. As most of these basins are completely covered by agreat thickness of Cenozoic sediments, geological survey has to depend only ona small number of drill holes and therefore meets with a great deal of difficul-ties. The present paper presents some techniques for recognizing and delineatingthe basins, for calculating the buried depth of the basins as well as for study-ing basement structures by using geophysical prospecting data, with a descrip-tion given concerning the complex situation met in the work. As only partsof the basins contain coal, and different coal-bearing basins frequently havediverse coal-bearing structural positions, the assessment of coal potential of thebasins and the determination of coal-bearing horizons make up the mostdifficult technical probroms in coal prospecting. Besides making a brief accountof the traditional technique for analysing sedimentary environment and thenevaluating coal potential of the basins by utilizing geophysical prospecting data,this paper deals relatively in detail with a new method for analysis of sedimen-tary environment by employing geophysical prospecting data-technique ofvertical analysis, describing the process of its emergence and development andgiving some practical examples showing its effectiveness.