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): May 6, 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 two
press releases, dated April 30, 1997 and May 2, 1997, the text of each
follows:
Mallon Resources Corporation today reported that the Bonanza
Federal No. 1 Well has been completed and placed on production in Eddy
County, New Mexico, and is producing approximately 130 barrels of oil
per day from the Delaware Formation at 7,300 feet.. The well is the
first Antelope Ridge Prospect well in which Mallon has participated.
Mallon owns a 25% working interest in the well, which is operated by
Strata Production Company of Roswell, New Mexico.
Kevin Fitzgerald, President of Mallon Oil Company, said, "The
Bonanza No. 1 is a great start to our work at Antelope Ridge. We have
acquired interests in six sections in this area, and we expect to be
busy drilling here in the near future."
The Company also reported the successful reentry of its O'Neill
Federal No.1 Well in Eddy County, New Mexico. The well was originally
completed as a Bones Springs Formation sour gas well at approximately
5,300 feet in 1970. In April, Mallon reentered the well and
perforated eight feet of the Morrow Formation at approximately 11,200
feet. The well is on production and is flowing approximately 1.4
million cubic feet of natural gas per day at a flowing tubing pressure
of 600 psi. Mallon is operator of the well and owns a 85.9% working
interest until payout, after which its working interest will decrease
to 57.3%.
"We are very pleased with the results of the O'Neill Well
reentry. This well is located approximately one mile east of our
prolific Blackriver Federal No. 1 Well, and indicates we have the
potential for additional Morrow drilling in this area," stated George
Mallon, Chairman of the Company. "By re-entering an existing bore
hole, we were able to put this gas on production for about half the
cost of drilling a new well."
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 National Market under the symbol "MLRC".
* * * * * * * * *
Mallon Resources Corporation reports that holders of 252,675
shares of its Series B Preferred Stock have elected to convert those
shares into 280,747 shares of the Company's Common Stock. Following
these conversions and certain related transactions, 135,200 shares of
the Series B Preferred Stock remain outstanding, and the number of
outstanding shares of Common Stock increased to approximately
4,690,000 shares.
George Mallon, President, said, "These conversions of preferred
stock into common were good for the Company. They reduce, on a share-
for-share basis, the Company's obligation to periodically redeem
shares of the preferred, thus freeing capital for use in our drilling
programs. We are also pleased because the conversions demonstrate the
investors' faith in what the Company is doing."
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 National 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
May 6, 1997 __/s/ Roy K. Ross________________
Roy K. Ross, Executive Vice President
