This study is based around Karayun which is in the Sivas Tertiary Basin, one of the important sedimentary basins in Turkey. The units observed in the study area and nearby are Oligocene Hafik, Lower Miocene Karayun and Lower-Middle Miocene Karacaoren Formations and Quaternary alluvium. This study focused on samples from the Karayun Formation due to the presence of alternations of bituminous shale levels in the formation. The studied bituminous shales are characterized by relatively high total organic carbon values up to 10.44 % and S2 values ranging from 0.01 to 89.02 HC/g rock, indicating fair to excellent source rock. Most of the bituminous shales are at the immature to early mature stage for hydrocarbon generation. Generally, genetic potential values are over 2 mg HC/g rock. The hydrogen index value of samples are between 9 and 887 mg HC/g total organic carbon (TOC) (on average 333.62 mg HC/g TOC). Oxygen index values vary between 17 and 557 mg CO2/g TOC (on average 135.35 mg CO2/g TOC). On the basis of Rock-Eval pyrolysis analysis, kerogens are type I/II and type II/III mixed. Dominant organic matter observed in this formation is algal amorphous organic matter. Thermal alteration index (TAI), Spore colour index (SCI), vitrinite reflectance values (R-o) and T-max evaluations indicate that maturity of the unit is between diagenesis and the early mature zone, and at the beginning of the hydrocarbon-producing stage. As a result of a series of analyses, it was found that the Karayun Formation has organic facies of B, BC and C and limited hydrocarbon generation potential in the basin.