There are several productive petroleum fields in the North Western Desert (WD) of Egypt, which received extensive investigations regarding their petroleum potential. However, a few studies tackled the Matruh Oil Field, which contains the oil prolific Early Cretaceous Alam El-Bueib Formation (AEB Fm) reservoir. The reservoir intervals of the AEB Fm show substantial lithological variations across the basin. Therefore, it is necessary to analyze the vertical and lateral distributions in terms of their lithological and petrophysical properties. To achieve this objective, wireline logs of four wells and 20-2D seismic lines were used to construct a depth-structure contour map for the studied part of the field. This map was used to build the field’s structure model and to identify the fault patterns in the basin through several seismic lines. Analyses of well logs data and lithology were used to estimate the petrophysical properties of AEB sandstone units AEB-1, AEB-3A, AEB-3C, and AEB-6. Results show that the AEB-6 Unit is the most promising hydrocarbon-bearing unit. It has a net pay of 20–160 feet, a shale volume of 5–20%, an effective porosity of 14–20%, and a hydrocarbon saturation of 70–88%. The structure-depth maps indicate a number of normal faults with two principal NE-SW and NW–SE trends, which probably act as structural traps in the Matruh Oil Field. The constructed structure-depth maps and calculated petrophysical parameters were used to build a three-dimensional reservoir model. A blind well was used to validate the accuracy and reliability of the facies, porosity, and saturation models for the AEB Fm units, ensuring a good match between log-derived data and built models. The AEB Fm shows regional heterogeneous variations in its petrophysical characteristics. It exhibits unconventional reservoir characteristics in a N–S direction and conventional reservoir characteristics in an E–W direction. This observed heterogeneity shows the need to carry out further investigations to comprehensively assess the hydrocarbon potential of AEB Fm in different areas of the Matruh Basin.