SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) September 12, 1994
(September 7, 1994)
HONDO OIL & GAS COMPANY
(Exact name of registrant as specified in its charter)
Delaware 0-52 95-1998768
(State or other jurisdiction (Commission) (I.R.S. Employer
of incorporation) File Number Identification No.)
410 East College Boulevard, Roswell, New Mexico 88201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (505) 625-8700
_____________________________________________________________________
(Former name or former address, if changed since last report)
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Item 5. Other Events
Hondo Oil & Gas Company released the following press release on
September 7, 1994:
HONDO OIL & GAS COMPANY ANNOUNCED TODAY A DISCOVERY OF POTENTIALLY
SIGNIFICANT RESERVES OF NATURAL GAS AND CONDENSATE IN COLOMBIA. THE
TEXT OF AMOCO COLOMBIA PETROLEUM COMPANY'S NEWS RELEASE FOLLOWS:
Amoco Colombia Petroleum Company, Hondo Magdalena Oil & Gas
Limited, and Opon Development Company today announced they have
discovered potentially significant reserves of natural gas and
condensate in an exploratory well recently drilled on the Opon
Association Contract area in Colombia.
The discovery well, the Opon No. 3, tested at a rate of 45
million cubic feet of natural gas and 2,000 barrels of condensate
daily through a 42/64-inch opening at the surface with 6,000 pounds-
per-square-inch flowing tubing pressure. Amoco said that downhole
restrictions prevented the well from testing at higher rates.
Amoco Colombia, as operator, has a 60 percent working interest in
the well and the Opon Contract Area; Hondo Magdalena Oil & Gas Limited
has a 30 percent working interest; and Opon Development Company has a
10 percent working interest. Ecopetrol also has the right to
participate with 50 percent working interest in any commercial field
discovered in this contract area.
Located in the Middle Magdalena Valley about 125 miles north of
Bogota, the well tested the hydrocarbons from 1,118 feet of
perforations over the interval 10,018 feet to 12,348 feet within the
La Paz formation. It was drilled to a depth of 12,710 feet.
According to D.F. Work, Amoco's group vice president--worldwide
exploration, the company is very encouraged by the Opon No. 3's
results and considers it to be a significant discovery. However,
additional work needs to be completed before its significance can be
fully evaluated, he says.
"To establish the ultimate potential of the field, we need to
conduct additional seismic and drill additional delineation wells to
better understand the extent of the subsurface structure and the size
of the hydrocarbon resources we have discovered there," says Work.
"Proximity to potential gas market such as Bogota, Medellin, and
the Barrancabermeja refinery makes this discovery very attractive for
the benefit of both Colombia and the project's interest owners," he
adds.
Amoco now is preparing a second drilling location and is pursuing
discussions for sale of the natural gas.
Amoco Colombia is a unit of Amoco Corporation, a fully-integrated
energy and petrochemical company with interests in about 40 countries.
Hondo Magdalena Oil & Gas Limited is a wholly-owned subsidiary of
Hondo Oil & Gas Company. Opon Development Company is a privately held
oil and gas company.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
HONDO OIL & GAS COMPANY
Date: September 12, 1994 By: /s/ C.B. McDaniel
______________________________
C.B. McDaniel
Secretary & Counsel
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