HALLWOOD ENERGY CORP
SC 13D, 2000-12-14
CRUDE PETROLEUM & NATURAL GAS
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HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------



                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  SCHEDULE 13D


                    UNDER THE SECURITIES EXCHANGE ACT OF 1934

                           HALLWOOD ENERGY CORPORATION
                                (NAME OF ISSUER)


                                  COMMON STOCK
                         (TITLE OF CLASS OF SECURITIES)


                                     40636X
                                 (CUSIP NUMBER)


                                 DONALD L. BRAUN
                      PRESIDENT OF THE GENERAL PARTNERS OF
                           HALL FINANCIAL GROUP, LTD.
                                       AND
                            HALL PHOENIX/INWOOD, LTD.
                         6801 GAYLORD PARKWAY, SUITE 100
                               FRISCO, TEXAS 75034
                                 (972) 377-1100
                       (NAME, ADDRESS AND TELEPHONE NUMBER
                         OF PERSON AUTHORIZED TO RECEIVE
                           NOTICES AND COMMUNICATIONS)



                                DECEMBER 5, 2000
             (DATE OF EVENT WHICH REQUIRES FILING OF THIS STATEMENT)


If the filing person has previously  filed a statement on Schedule 13G to report
this  acquisition  that is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), (f) or (g), check the following box. [ ]

SCHEDULE 13D                                                        PAGE 1 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Hall Financial Group, Ltd.         75-2737328
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

Number of         7.       Sole Voting Power         98,400
Shares            --------------------------------------------------------------
Beneficially
Owned by          8.       Shared Voting Power        - 0 -
Each              --------------------------------------------------------------
Reporting
Person            9.       Sole Dispositive Power    98,400
With              --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount  Beneficially Owned by Each Reporting Person)

                                                     98,400
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)   1.1
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   PN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 2 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Hall Phoenix/Inwood, Ltd.          75-2503042
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

Number of         7.       Sole Voting Power         405,911
Shares            --------------------------------------------------------------
Beneficially
Owned by          8.       Shared Voting Power        - 0 -
Each              --------------------------------------------------------------
Reporting
Person            9.       Sole Dispositive Power    405,911
With              --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                                                     405,911
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)   4.2
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   PN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 3 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Hall Financial Group GP, Inc.               75-2737120
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for Hall Financial Group, Ltd.
Beneficially      --------------------------------------------------------------
Owned by
Each              8.       Shared Voting Power        - 0 -
Reporting         --------------------------------------------------------------
Person
With              9.       Sole Dispositive Power

                           See Item 9 for Hall Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount  Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   CO
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 4 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Phoenix/Inwood Corporation         75-2430745
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for Hall Phoenix/Inwood, Ltd.
Beneficially      --------------------------------------------------------------
Owned by
Each              8.       Shared Voting Power        - 0 -
Reporting         --------------------------------------------------------------
Person
With              9.       Sole Dispositive Power

                           See Item 9 for Hall Phoenix/Inwood, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount  Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall Phoenix/Inwood, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall Phoenix/Inwood, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   CO
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 5 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Donald L. Braun
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
Beneficially               Financial Group, Ltd.
Owned by          --------------------------------------------------------------
Each              8.       Shared Voting Power        - 0 -
Reporting         --------------------------------------------------------------
Person            9.       Sole Dispositive Power
With
                           See Item 9 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
                           Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 6 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Mark Depker
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
Beneficially               Financial Group, Ltd.
Owned by          --------------------------------------------------------------
Each
Reporting         8.       Shared Voting Power        - 0 -
Person            --------------------------------------------------------------
With
                  9.       Sole Dispositive Power

                           See Item 9 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
                           Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -

--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 7 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Larry E. Levey
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [  ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
Beneficially               Financial Group, Ltd.
Owned by          --------------------------------------------------------------
Each
Reporting         8.       Shared Voting Power        - 0 -
Person            --------------------------------------------------------------
With
                  9.       Sole Dispositive Power

                           See Item 9 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
                           Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 8 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Hubert Langston, Jr.
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for Hall Financial Group, Ltd.
Beneficially      --------------------------------------------------------------
Owned by
Each              8.       Shared Voting Power        - 0 -
Reporting         --------------------------------------------------------------
Person
With              9.       Sole Dispositive Power

                           See Item 9 for Hall Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                        PAGE 9 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Keith Taylor
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power
Number of
Shares                     See Item 7 for Hall Financial Group, Ltd.
Beneficially      --------------------------------------------------------------
Owned by
Each              8.       Shared Voting Power        - 0 -
Reporting         --------------------------------------------------------------
Person
With              9.       Sole Dispositive Power

                           See   Item  9  for   Hall   Financial   Group,   Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           -0-
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall Financial Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                       PAGE 10 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------

         1.       Names of  Reporting  Persons.  I.R.S.  Identification  Nos. of
                  above persons (entities only).

                  Craig Hall
--------------------------------------------------------------------------------

         2.       Check the Appropriate Box if a Member of a Group

                  (a)     [ ]
                  (b)      X
--------------------------------------------------------------------------------

         3.       SEC Use Only.
--------------------------------------------------------------------------------

         4.       Source of Funds (See Instructions) WC
--------------------------------------------------------------------------------

         5.       Check if disclosure of Legal  Proceedings Is Required Pursuant
                  to Items 2(d) or 2(e)
--------------------------------------------------------------------------------

         6.       Citizenship or Place or Organization.   Texas
--------------------------------------------------------------------------------

                  7.       Sole Voting Power

                           See Item 7 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
Number of                  Financial Group, Ltd.
Shares            --------------------------------------------------------------
Beneficially
Owned by          8.       Shared Voting Power       - 0 -
Each              --------------------------------------------------------------
Reporting
Person            9.       Sole Dispositive Power
With
                           See Item 9 for  Hall  Phoenix/Inwood,  Ltd.  and Hall
                           Financial Group, Ltd.
                  --------------------------------------------------------------

         10.      Shared Dispositive Power)           - 0 -
--------------------------------------------------------------------------------

         11.      Aggregate Amount Beneficially Owned by Each Reporting Person)

                  See Item 11 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         12.      Check if the  Aggregate  Amount in Row (11)  Excludes  Certain
                  Shares (See Instructions)
--------------------------------------------------------------------------------

         13.      Percent of Class Represented by Amount in Row (11)

                  See Item 13 for Hall  Phoenix/Inwood,  Ltd. and Hall Financial
                  Group, Ltd.
--------------------------------------------------------------------------------

         14.      Type of Reporting Person (See Instructions)   IN
--------------------------------------------------------------------------------

SCHEDULE 13D                                                       PAGE 11 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                  SCHEDULE 13D


ITEM 1.           SECURITY AND ISSUER.

                  Common stock,  Hallwood Energy Corporation,  4610 South Ulster
                  Street  Parkway,  Suite 200,  Denver,  Colorado  80237.  Their
                  mailing  address is Hallwood  Energy  Corporation,  4582 South
                  Ulster Street Parkway, Suite 1700, Denver, Colorado 80237.

ITEM 2.           IDENITY AND BACKGROUND.

                  This Schedule is signed on behalf of the following:

                  (a)      Hall   Financial   Group,   Ltd.,  a  Texas   limited
                           partnership;
                  (b)      Hall Financial  Group GP, Inc., a Texas  corporation,
                           General Partner of Hall Financial Group, Ltd.;
                  (c)      Hall   Phoenix/Inwood,    Ltd.,   a   Texas   limited
                           partnership;
                  (d)      Phoenix/Inwood   Corporation,  a  Texas  corporation,
                           General Partner of Hall Phoenix/Inwood, Ltd.;
                  (e)      Donald L. Braun,  President of Hall  Financial  Group
                           GP,   Inc.   and    President    and   Treasurer   of
                           Phoenix/Inwood Corporation;
                  (f)      Mark  Depker,   Executive   Vice  President  of  Hall
                           Financial  Group  GP,  Inc.  and  Vice  President  of
                           Phoenix/Inwood Corporation;
                  (g)      Larry Levey,  Executive  Vice President and Secretary
                           of Hall  Financial  Group GP, Inc. and Vice President
                           and Secretary of Phoenix/Inwood Corporation;
                  (h)      Hubert   Langston,   Jr.,  Vice   President  of  Hall
                           Financial Group GP, Inc.;
                  (i)      Keith Taylor,  Treasurer of Hall Financial  Group GP,
                           Inc.
                  (j)      Craig Hall, sole Director of Hall Financial Group GP,
                           Inc. and of Phoenix/Inwood Corporation

                  Each   of  the   foregoing   is   hereinafter   referred   to,
                  individually, as a "Reporting Person" and, collectively as the
                  "Reporting Persons".  Each of the individuals listed herein is
                  a  Reporting  Person  solely  because  of his  position  as an
                  officer  or  director  of one or both  the  corporate  general
                  partners of the limited  partnerships  Hall  Financial  Group,
                  Ltd. and Hall  Phoenix/Inwood,  Ltd. Mr. Braun  authorizes the
                  investments on behalf of both entities.  The principal  office
                  and  business  address  of all the  Reporting  Persons is 6801
                  Gaylord Parkway, Suite 100, Frisco, Texas 75034. The principal
                  businesses  of Hall  Financial  Group,  Ltd. are  investing in
                  private and public businesses, investment manager, real estate
                  developer and manager,  and lender.  The principal business of
                  Hall  Phoenix/Inwood,  Ltd. is investing in public and private
                  businesses.   The  principal   businesses  of   Phoenix/Inwood
                  Corporation  and Hall Financial Group GP, Inc. are to serve as
                  the General  Partner of its  respective  limited  partnership,
                  Hall Financial Group,  Ltd. or Hall  Phoenix/Inwood,  Ltd. The
                  principal  occupation  of  each  of the  individual  Reporting
                  Persons  other than  Craig Hall is to serve in his  respective
                  officer  position  for one or both of the  corporate  entities
                  listed above in the  positions  listed  above.  The  principal
                  occupation  of Craig Hall is  investor.  All of the  Reporting
                  Persons conduct their  principal  occupation from 6801 Gaylord
                  Parkway, Suite 100, Frisco, Texas 75034.

                  None of the Reporting Persons, during the last five years, has
                  been  convicted  in  any  criminal  proceedings  or  was or is
                  subject to a judgment,  decree or final order enjoining future
                  violations of, or prohibiting or mandating  activities subject
                  to, federal or state  securities laws or finding any violation
                  with respect to such laws.

SCHEDULE 13D                                                       PAGE 12 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

ITEM 3.           SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.

                  The  Reporting  Persons Hall  Financial  Group,  Ltd. and Hall
                  Phoenix/Inwood,   Ltd.   utilized  their  working  capital  to
                  purchase the Securities.

ITEM 4.           PURPOSE OF TRANSACTION.

                  The  Reporting  Persons Hall  Financial  Group,  Ltd. and Hall
                  Phoenix/Inwood,  Ltd. made their purchases of these Securities
                  for investment purposes based on market conditions at the time
                  of each  purchase  and  currently  do not  have  any  plans or
                  proposals  regarding  the  investments  or the  issuer.  These
                  Reporting  Persons will consider both additional  acquisitions
                  of  shares  in  the  issuer  and  sale  of  shares  previously
                  purchased  in the  issuer  if the  Reporting  Persons  believe
                  either to be appropriate based on market conditions.

ITEM 5.           INTEREST IN SECURITIES OF THE ISSUER.

                  Hall Financial Group,  Ltd purchased the following  Securities
                  of the  issuer in the last 60 days or in the 60 days  prior to
                  the date of the event which requires this filing.

                      Shares Purchased     Average Price           Date
                      ----------------     -------------           ----
                             2,500             $8.506        December  8, 2000
                             9,600             $8.282        December  6, 2000
                            11,400             $8.131        December  5, 2000
                             5,300             $8.703        November 13, 2000
                             1,200             $8.763        November 10, 2000
                            20,000             $8.938        October  23, 2000

                  All  purchases  were  made  on  the  NASDAQ  market  and  were
                  purchased through brokerage accounts.

                  Hall  Phoenix/Inwood,  Ltd.  purchased  no  Securities  of the
                  issuer  in the 60 days  prior to the date of the  event  which
                  requires filings or since that date.

ITEM 6.           CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
                  RESPECT TO SECURITIES OF THE ISSUER.

                  The  partnerships  and  corporations   named  in  Item  2  are
                  affiliated entities under common control,  and all individuals
                  named in Item 2, other than Mr. Hall,  are the officers of the
                  corporate  general partners of the limited  partnerships  that
                  purchased  the  Securities.  Mr. Hall is the sole  director of
                  each of  those  corporate  general  partners.  Hall  Financial
                  Group, Ltd. and Hall Phoenix/Inwood Ltd. are controlled by the
                  same individuals,  who are the individual  Reporting  Persons,
                  but they have no  contracts,  arrangements  or  understandings
                  with any other  person  with  respect to the  securities.  The
                  Securities  referenced on this Schedule have not been pledged,
                  but were purchased through and are held in brokerage  accounts
                  that provide for margining of securities.

ITEM 7.           MATERIAL TO BE FILED AS EXHIBITS.

                  None.

SCHEDULE 13D                                                       PAGE 13 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


                                    SIGNATURE

After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date


HALL FINANCIAL GROUP, LTD.
a Texas limited partnership

By:      Hall Financial Group GP, Inc.
         a Texas corporation, its general partner


By:  /s/ Donald L. Braun
   ---------------------
         Donald L. Braun
         Its:  President



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.



SCHEDULE 13D                                                       PAGE 14 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------


                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



HALL FINANCIAL GROUP GP, INC.
a Texas corporation

By:  /s/ Donald L. Braun
   ---------------------
         Donald L. Braun
         Its:  President



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.



SCHEDULE 13D                                                       PAGE 15 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



HALL PHOENIX/INWOOD, LTD.
a Texas limited partnership

By:      Phoenix/Inwood Corporation
         a Texas corporation, its general partner



By:  /s/ Donald L. Braun
   ---------------------
         Donald L. Braun
         Its:  President



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.




SCHEDULE 13D                                                       PAGE 16 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



PHOENIX/INWOOD CORPORATION
a Texas corporation

By:  /s/ Donald L. Braun
   ---------------------
         Donald L. Braun
         Its:  President



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.




SCHEDULE 13D                                                       PAGE 17 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Donald L. Braun
---------------------
 Donald L. Braun, Individually



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.



SCHEDULE 13D                                                       PAGE 18 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Mark Depker
-----------------
 Mark Depker, Individually




                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.








SCHEDULE 13D                                                       PAGE 19 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Larry E. Levey
--------------------
Larry E. Levey, Individually



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.





SCHEDULE 13D                                                       PAGE 20 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Hubert Langston, Jr.
--------------------------
Hubert Langston, Jr., Individually






                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.





SCHEDULE 13D                                                       PAGE 21 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Keith Taylor
------------------
Keith Taylor, Individually



                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.





SCHEDULE 13D                                                       PAGE 22 OF 23

<PAGE>

HALLWOOD ENERGY CORPORATION - SC 13/D         CUSIP NUMBER    40636X
--------------------------------------------------------------------------------

                                    SIGNATURE


After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.

December 12, 2000
-----------------
Date



  /s/ Craig Hall
----------------
Craig Hall, Individually




                             JOINT FILING AGREEMENT

The Reporting Persons acknowledge and agree by certifying this Schedule 13D that
the  foregoing  statement  on  Schedule  13D is filed on  behalf  of each of the
Reporting  Persons  and that all  subsequent  amendments  to this  statement  on
Schedule 13D shall be filed on behalf of each of the Reporting  Persons  without
the necessity of filing additional joint acquisition statements.




SCHEDULE 13D                                                       PAGE 23 OF 23



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