This study analyzes the petroleum potential of the Middle Jurassic Khatatba Formation (Fm) in the Matruh Basin, northwestern Egypt. Climate changes and Tethyan Ocean sea level oscillations deposited fine and coarse clastics in this formation under semi-arid and semi-humid conditions, demonstrating in situ dual source and reservoir characteristics. Maturation of the source rocks was related to Late Jurassic–Early Cretaceous Tethyan rifting. The onset of oil generation occurred in the Early Cretaceous (~ 125 Ma), while the onset of gas generation happened in the Late Cretaceous (~ 95 Ma). Shales from the Lower Cretaceous Alam El Bueib Formation are the primary sealing rocks, while carbonates and shales from the Khatatba Formation are secondary sealing rocks. Trap types are structural, created during the Late Jurassic and Early Cretaceous rifting of the Matruh Basin. The Upper Safa Member sandstones show an upward trend in kaolinite concentration and demonstrate low-quality, tight sandstone reservoirs. The Lower Safa Member sandstones indicate greater gas reservoir quality with lower shale quantities. Overall, the petroleum system of the Khatatba Formation proves generally fair hydrocarbon potential in the studied well. The objectives of this study are to assess the hydrocarbon potential of the Khatatba Formation in the Imhotep-W-1X well, Matruh Basin, utilizing multi-integration analysis of X-ray diffraction, XRD, basin modeling, geomechanics, and geochemical analysis.