Abstract The Upper Muschelkalk is an unusual reservoir in NW Europe, producing only in the Coevorden Muschelkalk field, onshore the Netherlands. Origin and nature of the gas producing intervals were poorly known. The objective of the paper is to provide a comprehensive description of facies, cyclicity and petrophysical characteristics. From this description a depositional and sequence stratigraphic model is proposed, which explains why there is gas production only from certain intervals of the sequence. Our investigation is based on seismic, core and open hole log data. It indicates that the reservoir consists of dolomites, which are either muddy lagoonal to sabkha, or grainy backshoal deposits. The best reservoir quality is encountered in peloidal-oolitic packstones to grainstones. These represent storm-dominated backshoal deposits and constitute the inner part of a homoclinal carbonate ramp. The succession shows a conspicuous hierarchical cyclicity. Porous backshoal deposits form during maximum transgression and early regression. However permeable, gas producing backshoal deposits only occur in the upper 15 to 20 m, which forms the large-scale regressive hemi-cycle of the Upper Muschelkalk. Better reservoir quality in the upper hemi-cycle is due to changes in grain type and early diagenesis. The investigation might serve as calibration point for further exploring the Upper Muschelkalk reservoir and its facies pattern in the NW European basin.