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): September 8, 1997
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 the following
press release, dated September 8, 1997, the text of which follows:
Mallon Resources Corporation today reported that it has completed
a third significant natural gas well on its East Blanco Field acreage
block in the San Juan Basin of New Mexico. The well, the Jicarilla
30-3-28 #1, tested in the Ojo Alamo formation at 3,150 feet at a rate
of approximately 800 mcf per day. Mallon has a 100% working interest
in the well. This well and two earlier reported wells are believed to
be the first commercially productive Ojo Alamo wells in the San Juan
Basin. The new well, which is located in excess of four miles from
the earlier wells, is producing from the same reservoir. Based on
these three Ojo Alamo completions, Mallon believes that a substantial
portion of its 21,000 acre East Blanco Field acreage block may be
productive from the Ojo Alamo. It has identified 80 prospective
drilling locations.
Based on the data currently available, Mallon plans to recomplete
10 other existing East Blanco Field wells in the Ojo Alamo formation,
and drill at least five new wells to the Ojo Alamo. Mallon expects
that as its development work proceeds, additional development targets
within its acreage block will be identified.
Kevin Fitzgerald, President of Mallon Oil Company, said, "Our
technical staff estimates that each of our three Ojo Alamo wells
contains between two and three billion cubic feet of gas in place.
Based on test data available to date, it appears that gas recoveries
from these wells will be in the 75% to 85% range. We are targeting
similar levels of reserves in our recompletion and drilling targets.
We also expect to enhance the production rates of our existing and
future Ojo Alamo wells by the use of hydraulic fracturing and
alternative completion techniques."
Mallon's recompletion program is already underway, and should
proceed at a pace of approximately three wells per month. The final
details of a hydraulic fracturing program are being planned, and those
projects will begin shortly. The new drilling will commence as soon
as permits are approved. Drilling and recompletion costs in this area
are relatively low, which enhances project economics.
George Mallon, Chairman of the Company, said, "We are very
excited by the development potential of this Ojo Alamo play. We
control and operate approximately 21,000 acres in the East Blanco
Field, with an average working interest of approximately 76%. If our
Ojo Alamo drilling and recompletion programs prove to be as successful
as forecast, this new field will have a substantial impact on our gas
production and reserves."
Mallon also reported that in 1997 it has drilled 17 wells and
recompleted four wells in the Delaware Basin, and drilled one well and
recompleted six gas wells in the San Juan Basin.
George Mallon said, "In addition to our Ojo Alamo play in the San
Juan Basin, we are very encouraged by our first results in the
Delaware Basin's White City Field, where we have drilled four oil
wells this summer. We are still testing these wells, and it appears
that they will all be producers. Our acreage position in this area is
such that we plan to drill another seven or eight wells in this field
by year end."
Mallon Resources Corporation is a Denver, Colorado, based oil and
gas exploration and production company operating primarily in the
Delaware and San Juan Basins of New Mexico. Mallon's Common Stock is
quoted on the Nasdaq National Market tier of the Nasdaq Stock 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
September 10, 1997 ___/s/ Roy K. Ross_______________
Roy K. Ross, Executive Vice President
