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): December 17, 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 December 17, 1997, the text of which
follows:
Mallon Resources Corporation (Nasdaq: "MLRC") today
reported that its capital budget for 1998 will be $24.7 million,
a $10.7 million increase over its 1997 budget of $14 million.
Kevin Fitzgerald, President of Mallon Oil Company, said, "We
will be spending these funds in the San Juan and Delaware Basins
of New Mexico, to further increase production in our existing
East Blanco, Lea Northeast, Quail Ridge and White City Fields.
The Company's East Blanco gas plant is currently producing 10.2
million cubic feet per day while operating at 90% of capacity.
By March 1998, we plan to expand the plant's daily capacity to 24
million cubic feet, and by year-end 1998 the capacity is targeted
to be 40 million cubic feet per day. With the increasing plant
capacity, the Company has scheduled the drilling of 31 wells in
East Blanco during 1998. Approximately 25 additional wells are
planned for our other field areas."
George Mallon, Chairman of the Company, commented, "With our
$14 million budget in 1997, we drilled 31 wells and increased our
rate of production from 1,000 barrels of oil equivalent per day
to our current approximately 3,000 barrels of oil equivalent per
day. While that increase was excellent, the Company believes
that, with its increased budget, it will be able to generate
sharply higher production rates from East Blanco in 1998. East
Blanco wells are shallow and relatively low cost to drill, and
their excellent economics should continue to support the
Company's rapid growth."
The foregoing information contains forward-looking
statements and forecasts, the realization of which cannot be
assured. Actual results may differ significantly from those
forecast. Volatility of commodity prices, unbudgeted cost
increases, unforeseen delays in operations, and operations that
prove less successful than anticipated are risks that effect the
Company's operations. These and other risk factors are discussed
in the Company's Annual Report.
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
December 19, 1997 ___/s/ Roy Ross______________________
Roy K. Ross, Executive Vice President
