Abstract: The upper oil unit in the Tertiary oil reservoirs in Yuqixi area is characterized by deep buried depth, poor well control, thin sand-shale interbed, significant variation in physical properties, and no obvious difference between the reservoirs and adjacent rocks on acoustic wave logging curves. So it is difficult to accurately predict and evaluate the reservoirs with conventional data. In order to solve this problem, a study is performed on methodology of reservoir prediction through inversion in Yuxiqi area. Analysis of various inversion methods shows that reconstruction-based inversion method is applicable in Yuxiqi area. Pseudo-acoustic curve was reconstructed by SP curve for inversion of pseudo-acoustic impedance. Good geologic effects were achieved, and the thin sand-shale interbeds are clearly defined on inversion sections. The distribution of No.1 sandbody and the favorable oil/gas reservoir intervals in the upper oil unit are identified by using the inversion results with the information of structures, sedimentary facies, and the main control factors of hydrocarbon accumulation.