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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) October 13, 1995
(October 12, 1995)
HONDO OIL & GAS COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-8979 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)
There are no exhibits to this report.
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Item 5. Other Events
The Company issued a press release jointly with its partner, Amoco
Colombian Petroleum Company, on October 12, 1995. The text of the press
release follows:
Amoco Colombia Petroleum Company, Hondo Magdalena Oil & Gas
Limited, and Opon Development Company today announced results from a
well recently completed on the Opon Association Contract Area in
Colombia confirming the existence of significant natural gas and
condensate reserves.
The new well, Opon No. 4, is located about one mile south of the
Opon No. 3 well and tested at a rate of 58 million cubic feet of natural
gas and 1,900 barrels of condensate daily. The hydrocarbons were tested
through a 40/64-inch opening at the surface with 8,121 pounds-per-
square-inch flowing tubing pressure. The Opon No. 3 well tested at a
daily rate of 45 million cubic feet of natural gas and 2,000 barrels of
condensate.
The recently completed confirmation well tested the natural gas and
condensate from 1,022 feet of perforations in the La Paz formation. The
well was drilled to a depth of 11,500 feet.
According to T.W. Melsen, Amoco Colombia's president and resident
manager, the results of the recently completed well signify the
discovery of a commercial field on the Opon Association Contract Area.
"We are extremely pleased with the results from the Opon No. 4 and
have gained a much better insight into the complex geology with which we
are dealing. Additional wells will be needed to develop the full
potential of this gas field," Melsen said.
"With the success of this second well we now are confident a very
large gas field exists, which will be beneficial to Colombia's gas
development plan," he added.
It was reported earlier the Amoco, Hondo, and Opon Development had
signed a Memorandum of Understanding with Ecopetrol, the Colombian state
oil company, for the construction of facilities and a pipeline to carry
natural gas and condensate from the Opon wells to Ecopetrol's
Barrancabermeja refinery. Prior to arriving at the refinery, liquids
will be removed from the gas stream at Ecopetrol's El Centro gas
processing plant. The pipeline and related facilities will be
constructed by the Opon Association members and Ecopetrol. The parties
also agreed to sign contracts for the sale of 80 million cubic feet per
day of natural gas and associated liquid hydrocarbons upon the
successful testing of the Opon No. 4 well.
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Amoco Colombia, as operator, has a 60 percent working interest in
the Opon No. 4 well and the Opon Association 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 a 50 percent working interest in this
field upon it being declared commercial.
Amoco Colombia is a unit of Amoco Corporation, a worldwide energy
and petrochemical company. Hondo Magdalena Oil & Gas is a wholly-owned
subsidiary of Hondo Oil & Gas Company. Opon Development Company is a
privately held oil and gas company in Denver.
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: October 13, 1995 By: /s/ Stanton J. Urquhart
______________________________
Stanton J. Urquhart
Vice President
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