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 of earliest event reported): November 19, 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 19, 1996, the text of which was as follows:
Mallon Resources Corporation (Nasdaq/NMS: MLRC) today reported the
successful completion of its Black River 10 Federal Com. No. 1, a
Morrow formation development well in Eddy County, New Mexico. The
well, which was drilled to a total depth of 11,862 feet, has been
placed on production and is currently flowing 6.7 million cubic feet
of natural gas per day on a 23/64" choke at a tubing pressure of 1,660
psi from the middle section of the Morrow formation perforated from
11,340' to 11,430'. The well's calculated absolute open flow rate
from this section of the Morrow is 18 million cubic feet per day. The
well encountered a second productive formation in the upper section of
the Morrow. This upper section was not tested and is currently behind
pipe. Mallon Resources is operator of the well and owns a 25% working
interest until payout, after which its working interest will increase
to 29%.
"We are very pleased with the results of the Black River No. 1, which
is the first well in our accelerated development drilling program in
New Mexico," stated George Mallon, Chairman of Mallon Resources. "Not
only did we encounter two excellent Morrow sections, but the well's
initial flow rates are significantly higher than expected."
Kevin Fitzgerald, President of Mallon Oil, stated, "Mallon is now
preparing to re-enter a well one mile to the east of the Black River
No. 1, where logs indicate productive pay in the same sections of the
Morrow. The re-entry should be completed in the first quarter of
1997."
With the completion of its $15 million equity financing in October
1996, Mallon has launched an aggressive drilling program to develop
its low risk, high potential, acreage in the Delaware and San Juan
Basins of New Mexico. The Company expects to complete more than 50
wells in 1997, compared to approximately ten wells in each of the last
three years. One drilling rig is currently running, and the Company
plans to have a second rig in operation during December.
Mallon Resources Corporation is a Denver-based oil and gas exploration
and production company with operations primarily in the Delaware and
San Juan Basins of New Mexico. Mallon also owns approximately 14
million shares of Laguna Gold Company, which is engaged in precious
metals exploration and development. Laguna's common stock is listed
on The Toronto Stock Exchange under the trading symbol "LGC."
Mallon's common stock is listed on the Nasdaq under the trading 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 20, 1996 ___/s/ Roy Ross__________________
Roy K. Ross, Executive Vice President
