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During drilling it is important for the driller to know the properties of the formation being penetrated. To properly perform this operation, an analysis of the formation lithology on a real time basis is of great importance. This formation analysis greatly facilitates decision of safe weight of bit, correlation, marker identification and safe, efficient drilling. The formation analysis can allow Geologist perform a preliminary evaluation in order to plan the well log program. The term "formation Analysis" as used includes properties commonly estimated by oilfield geologist and petrophysicst. This study investigates formation analysis while starting with the fundamentals of drilling operations, penetration rates due to formation changes, Bit depth etc. Hence, the interpretation of lithology is performed in a number of ways depending on the data available at a particular depth.