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): August 14, 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 August 14, 1997, the text of which follows:
Mallon Resources Corporation today reported a net loss for second
quarter 1997 of $239,000 on revenues of $1,867,000, compared to a net
loss for second quarter 1996 of $520,000 on revenues of $1,492,000.
After payment of preferred dividends and preferred stock conversion
inducement, the net loss attributable to common shareholders for
second quarter 1997 was $672,000 ($0.14 per share) compared to a net
loss attributable to common shareholders for second quarter 1996 of
$616,000 ($0.30 per share). Total revenues for second quarter 1997
rose by $375,000 or 25% over second quarter 1996. Earnings before
income taxes, interest expense, depreciation, depletion and
amortization, impairment, and extraordinary loss (EBITDA) were
$398,000 ($0.09 per share) compared to $321,000 ($0.16 per share) for
last year's second quarter. Weighted average shares outstanding for
second quarter 1997 were 4,642,000 compared to 2,039,000 for second
quarter 1996. The 128% increase in shares outstanding was primarily
attributable to the Company's October 1996 public sale of 2.3 million
shares.
For the first six months of 1997, after payment of preferred
dividends and preferred stock conversion inducement, Mallon reported a
net loss attributable to common shareholders of $997,000 ($0.22 per
share), compared to a net loss attributable to common shareholders of
$1,271,000 ($0.63 per share) during the first six months of 1996. For
the first six months of 1997, EBITDA were $918,000 ($0.20 per share)
compared to $706,000 ($0.35 per share) last year. Weighted average
shares outstanding for the six months ended June 30, 1997 were
4,515,000 compared to 2,005,000 for the six months ended June 30,
1996.
Mallon's consolidated financial statements include the
consolidation of its 56.25% owned Laguna Gold Company, which has an
unfavorable impact on reported results. The table on page two
includes selected Mallon results, excluding Laguna's impact, which
better reflect the Company's oil and gas operations. EBITDA without
Laguna was $0.12 per share for second quarter 1997 and $0.27 per share
for the six months ended June 30, 1997.
During the second quarter, the Company drilled eight wells, seven
of which were completed. The one well not completed is being
evaluated in shallower uphole zones. The Company also recompleted
three wells, all of which are back on production. In addition, the
Company completed permitting and began construction of a gas
sweetening plant in the San Juan Basin, which will go into operation
in the third quarter. This will allow acceleration of the Company's
San Juan Basin gas well recompletion program over the balance of the
year. Currently, the Company is drilling four additional wells and is
conducting work on two recompletions. The Company currently plans to
drill approximately 20 wells and recomplete 16 wells during the
remainder of 1997.
The preferred stock conversion inducement mentioned above, and
reflected in the second quarter and first six months of 1997, is the
excess of the fair value of the common stock issued at the $9.00
conversion price paid over the fair value of the common stock that
would have been issued at the $11.31 conversion price then in effect.
<TABLE>
<CAPTION>
(In thousands, except per unit data)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
<C> <S> <S> <S> <S>
Selected Consolidated Results:
Revenues $ 1,867 $ 1,492 $ 3,898 $ 2,864
Costs and expenses 2,270 2,066 4,682 3,843
Net loss (239) (520) (469) (1,085)
Net loss attributable to
common shareholders (672) (616) (997) (1,271)
Net loss per share attributable
to common shareholders (0.14) (0.30) (0.22) (0.63)
EBITDA* 398 321 918 706
EBITDA per share 0.09 0.16 0.20 0.35
Weighted average shares
outstanding 4,642 2,039 4,515 2,005
Selected Results Without Laguna Gold Company:
Revenues $ 1,841 $ 1,489 $ 3,838 $ 2,847
Costs and expenses 1,891 1,765 3,951 3,432
Net loss (50) (276) (113) (745)
Net loss attributable to
common shareholders (483) (372) (641) (931)
Net loss per share attributable
to common shareholders (0.10) (0.18) (0.14) (0.46)
EBITDA* 561 542 1,223 1,011
EBITDA per share 0.12 0.27 0.27 0.50
Weighted average shares
outstanding 4,642 2,039 4,515 2,005
Selected Operating Data:
Net Production
Oil (Mbbls) 44 46 81 91
Gas (Mmcf) 567 378 978 700
MBOE 139 109 244 208
Average realized sales price
Oil (Mbbls) $19.32 $16.91 $20.81 $16.98
Gas (Mmcf) $1.74 $1.85 $2.17 $1.84
MBOE $13.23 $13.55 $15.62 $13.63
</TABLE>
* EBITDA is income before income taxes, interest expense,
depreciation, depletion and amortization, impairment, and
extraordinary loss. EBITDA is a financial measure commonly used in
the Company's industry. It 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.
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. The Company also owns a
controlling 14 million shares of the common stock of Laguna Gold
Company. Laguna common shares are traded on The Toronto Stock
Exchange under the symbol "LGC." Mallon's Common Stock is quoted on
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
August 18, 1997 ___/s/ Roy K. Ross_______________
Roy K. Ross, Executive Vice President
