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): March 18, 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 a press release,
dated March 18, 1997, the text of which was as follows:
Mallon Resources Corporation (Nasdaq: "MLRC") today reported a
net loss for 1996 of $1,837,000 on revenues of $6,520,000, compared to
a net loss in 1995 of $1,929,000 on revenues of $5,428,000. After
payment of preferred dividends, the net loss attributable to common
shareholders for 1996 was $2,213,000 ($0.88 per share) compared to a
net loss attributable to common shareholders in 1995 of $2,289,000
($1.16 per share). Total revenues for 1996 were up by $1,092,000
(20%) over 1995. Mallon also reported a net loss for the fourth
quarter of 1996 of $519,000 on revenues of $1,873,000, compared to a
net loss in the fourth quarter of 1995 of $835,000 on revenues of
$1,001,000. After payment of preferred dividends, the net loss
attributable to common shareholders for fourth quarter of 1996 was
$615,000 ($0.16 per share) compared to a net loss attributable to
common shareholders in fourth quarter of 1995 of $926,000 ($0.47 per
share). Earnings before interest, taxes, depreciation, depletion and
amortization, and extraordinary loss (EBITDA) for 1996 were $1,520,000
($0.61 per share) compared to $1,093,000 ($0.56 per share) for 1995.
Mallon's consolidated financial results are unfavorably affected
by the consolidation of Laguna Gold Company (Laguna), a 56% owned
subsidiary. See the chart on page 2 for a presentation of selected
Mallon results without consideration of Laguna's impact. EBITDA,
without Laguna, for 1996 is $0.86 per share, which represents the
Company's oil and gas operations.
Production for the year averaged 1,060 BOE per day. Mallon
completed six wells in 1996 compared to current plans for 50 wells in
1997. Kevin Fitzgerald, President of Mallon Oil, stated, "Since year-
end, the Company has completed ten wells and the drilling program is
still being ramped up. Currently, daily production is up by more than
50 percent from last year's average. This upward trend in production
and activity is a direct result of the $15,000,000 equity funding
completed by the Company in October 1996."
As previously reported, Mallon's oil and gas reserves at
January 1, 1997 were 6.4 million barrels of oil equivalent (mmboe), a
25% increase over the 5.1 mmboe reported at year-end 1995. Mallon's
proved reserves are 27% oil and 73% natural gas. The present value of
its reserves (discounted at 10% and assuming flat year-end prices)
increased 138% to $50.0 million from the $21.0 million at year-end
1995.
"We continue to enjoy success in our oil and gas drilling
operations in the Delaware Basin" said George Mallon, Chairman and
President of Mallon Resources. "With Laguna now on a solid financial
footing as a result of its recent IPO, and Mallon's equity financing,
we are in a position to quickly develop our oil and gas assets in the
Delaware and San Juan Basins. In addition, we continue to maintain a
significant equity exposure to Laguna's exploration opportunities."
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 under the symbol "MLRC". Laguna
Gold Company trades on The Toronto Stock Exchange under the symbol
"LGC".
SELECTED FINANCIAL AND OPERATING DATA
(In thousands, except per unit data)
<TABLE>
<CAPTION>
For the Years For the Three Months
Ended December 31, Ended December 31,
__________________ ____________________
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Selected Consolidated Results
Revenues $ 6,520 $ 5,428 $ 1,873 $ 1,001
Costs and expenses 8,463 7,104 2,565 1,927
Net loss (1,837) (1,929) (519) (835)
Net loss attributable to
common shareholders (2,213) (2,289) (615) (926)
Net loss per share attributable
to common shareholders $(0.88) $(1.16) $(0.16) $(0.47)
EBITDA (1) 1,520 1,093 311 (114)
EBITDA per share $0.61 $0.56 $0.08 $(0.06)
Weighted average shares
outstanding 2,512 1,947 3,945 1,950
Selected Results Without Laguna Gold Company
Revenues $ 6,390 $ 5,387 $ 1,830 $ 979
Costs and expenses 7,334 6,076 2,157 1,282
Net loss (1,104) (942) (327) (212)
Net loss attributable to
common shareholders (1,480) (1,302) (423) (303)
Net loss per share attributable
to common shareholders $(0.59) $(0.67) $(0.11) $(0.16)
EBITDA (1) 2,167 2,028 475 479
EBITDA per share $0.86 $1.04 $0.12 $0.25
Weighted average shares
outstanding 2,512 1,947 3,945 1,950
Other Operating Data
Net Production:
Oil (Mbbls) 174 173 39 38
Gas (Mmcf) 1,286 1,238 352 238
MBOE 388 379 98 78
Average realized sales price
Oil ($/Bbl) $18.05 $16.45 $20.82 $16.47
Gas ($/Mcf) $2.11 $1.58 $2.68 $1.71
BOE ($/BOE) $15.09 $12.66 $17.92 $13.23
(1) EBITDA is income before income taxes, interest, depreciation,
depletion and amortization, impairment, and extraordinary loss.
EBITDA, a financial measure commonly used in the Company's industry,
should not be considered in isolation or as a substitute for net
income, cash flow provided by operating activities or other income and
cash flow data prepared in accordance with generally accepted
accounting principles or as a measure of a company's profitability or
liquidity.
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
March 21, 1997 __/s/ Roy K. Ross________________
Roy K. Ross, Executive Vice President
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