The Pliocene-Pleistocene Karewa formation of Kashmir was deposited under fluviatile, lacustrine, and tectonic conditions favorable for gas generation and entrapment. The Karewas are 1,700 m thick, but drilling to date has tested only the upper 200 m. All gas accumulations found to date are noncommercial. Because anticlinal structures are not prominent in the Karewas, the principal traps are believed to be stratigraphic. Continued drilling, particularly for deeper reservoirs within the Karewas, should develop a commercial gas supply in this region. Migration of gas may have taken place from the Karewas to the underlying Triassic formations, and retention there of the gas in suitable traps is possible.