The Jiza-Qamar Basin is one of the most important exploration sedimentary basins in Yemen. For over a decade, the exploration of hydrocarbons has been occurring in this basin. Late Cretaceous age rocks are the most occurring organic-rich sediments in this basin, including coals, coaly shales, and shales. The studied organic-rich shale beds are from the Late Cretaceous Mukalla Formation and associated with coal seams. These organic-rich shales can serve as source rocks for hydrocarbon generation potential. The current study investigates the geochemical characteristics, including assessing the organic matter (OM) input, sedimentary environmental conditions, and hydrocarbon generation potential of the organic-rich shale within the Mukalla Formation from three well locations in the onshore Jiza-Qamar Basin using organic geochemistry, biomarker, and carbon isotope measurements. The studied shale samples have high OM content with total organic carbon values between 0.74 and 19.48 wt %. Furthermore, they contain mainly hydrogen-poor Types III and IV kerogen, indicating the presence of the gas-prone source rock. The presence of these types of kerogen indicates the abundance of vitrinite and inertinite macerals, as established by microscopic investigation. However, the studied organic-rich shales had biomarker features, including high Ph/Ph ratio between 3.82 and 7.46, high Tm/Ts ratio of more than 7, and high C29 regular steranes compared to C27 and C28 regular steranes. Apart from the biomarker results, the studied Mukalla shales are characterized by the abundance of land-derived OM that deposited in fluvial to fluvial deltaic environments under highly oxic conditions. The finding of the considerable concentration of terrigenous OM is probably confirmed by the bulk carbon isotope and maceral composition data. The maturity indicators show that the examined organic-rich shale samples in the studied wells exhibit low VR values of up to 0.71%, and thereby, they have not been yet reached the high maturity for gas generation. This low maturity level in the studied wells is probably attributed to shallow burial depth, exhibiting depth of up to 2835 m. Therefore, the substantial gas exploration operations from the organic-rich shale source rock system of the Late Cretaceous Mukalla Formation can be recommended in the deeper stratigraphic succession in the offshore Jiza-Qamar Basin.