SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of The Securities
Act of 1934
Date of Report (date earliest event reported): November 14, 1996
Mallon Resources Corporation
(exact name of registrant as specified in its charter)
Colorado 0-17267 84-1095959
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
999 18th Street, Suite 1700, Denver, Colorado 80202
(address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (303)293-2333
not applicable
(former name or former address, if changed since last report)
Item 5. Other Events
Mallon Resources Corporation (the "Company") issued a press
release, dated November 14, 1996, the text of which was as
follows:
Mallon Resources Corporation (Nasdaq: "MLRC"), today reported a
net loss for the third quarter of 1996 of $233,000 ($0.11 per
share) on revenues of $1,706,000, compared to a net loss in the
third quarter of 1995 of $246,000 ($0.13 per share) on revenues
of $1,698,000. After payment of preferred dividends, the net
loss for the third quarter of 1996 was $327,000 ($0.16 per share)
compared to a net loss in the third quarter of 1995 of $337,000
($0.17 per share). Total revenues were up by $329,000 due to the
sale of 400,000 shares of Laguna Gold Company common stock. Per
share data reflect a one-for-four reverse stock split effective
September 9, 1996.
Results in the third quarter of 1996 included a net loss from its
56% owned Laguna Gold Company of $203,000 compared to a net loss
in the third quarter of 1995 of $101,000. Since its initial
public offering in August 1996, Laguna, a precious metals
exploration and development company, has been conducting a core
drilling, exploration and development program in Costa Rica. A
considerable portion of Laguna's exploration and overhead costs
are expensed currently. Although Mallon's reported consolidated
financial results are unfavorably impacted by these charges,
Laguna's operations are fully funded from its own financial
resources.
For the first nine months of 1996, Mallon reported a net loss
after payment of preferred dividends of $1,601,000 ($0.79 per
share), compared to a net loss after payment of preferred
dividends of $1,363,000 ($0.70 per share) during the first nine
months of 1995. Results include losses from Laguna of $533,000
in 1996 and $378,000 in 1995. For the first nine months of 1996,
earnings before interest, taxes, depreciation, depletion and
amortization, and extraordinary loss (EBITDA) were $1,207,000
($0.59 per share) compared to $1,193,000 ($0.61 per share) last
year.
In October 1996, Mallon raised $15 million through a 2.3 million
common shares offering at $6.50 per share. Of the net proceeds,
approximately $1.9 million was used to purchase and retire all of
the previously outstanding shares of its Series A Convertible
Preferred Stock. The balance will be spent on an accelerated oil
and gas drilling program in New Mexico.
"We continue to enjoy success in our oil and gas drilling
operations in the Delaware Basin, where rates of return are
excellent and risks are relatively low," stated George Mallon,
Chairman and President of Mallon Resources. "With Laguna now on
a solid financial footing as a result of its recent IPO, and the
recent completion of Mallon's equity financing, we are now in a
position to accelerate our drilling program in both the Delaware
and the San Juan Basins. In addition, we continue to maintain a
significant equity exposure to Laguna's exploration
opportunities."
Selected Financial Information
The selected information presented below is provided to
explain further the Company's operating results on a consolidated
basis and without the effects of Laguna.
Selected Consolidated Results
_____________________________
<TABLE>
<CAPTION>
For the Nine Months For the Three Months
Ended September 30, Ended September 30,
1995 1996 1995 1996
<T> <C> <C> <C> <C>
Revenues $ 4,427,000 $ 4,647,000 $1,698,000 $1,706,000
Costs and expenses 5,177,000 5,899,000 1,600,000 1,978,000
Net loss (1,094,000) (1,320,000) (246,000) (233,000)
Net loss per share (0.56) (0.65) (0.13) (0.11)
EBITDA 1,193,000 1,207,000 741,000 505,000
EBITDA per share 0.61 0.59 0.38 0.24
Weighted average shares outstanding 1,946,000 2,032,000 1,949,000 2,084,000
Selected Results Without Laguna Gold Company
____________________________________________
Revenues $ 4,408,000 $ 4,560,000 $1,682,000 $1,636,000
Costs and expenses 4,780,000 5,187,000 1,483,000 1,666,000
Net loss (716,000) (787,000) (145,000) (30,000)
Net loss per share (0.37) (0.39) (0.07) (0.01)
EBITDA 1,549,000 1,682,000 839,000 685,000
EBITDA per share 0.80 0.83 0.43 0.33
Weighted average shares outstanding 1,946,000 2,032,000 1,949,000 2,084,000
</TABLE>
Mallon's oil and gas operations, located primarily in the western
United States, are conducted by its wholly-owned subsidiary,
Mallon Oil Company. Mallon also owns approximately 14 million
shares of the common stock of Laguna Gold Company, a company
engaged in the exploration for and development of precious metals
in Costa Rica. Laguna common shares are traded on The Toronto
Stock Exchange under the symbol "LGC." Mallon is headquartered
in Denver, Colorado. Mallon's Common Stock is quoted on the
Nasdaq National Market under the symbol "MLRC."
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.
Mallon Resources Corporation
November 18, 1996 ___/s/ Roy Ross________________
Roy K. Ross, Executive Vice President
