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 15, 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 May 15, 1997, the text of which follows:
Mallon Resources Corporation today reported a net loss for first
quarter 1997 of $230,000 on revenues of $2,031,000, compared to a
net loss for first quarter 1996 of $565,000 on revenues of
$1,369,000. After payment of preferred dividends, the net loss
attributable to common shareholders for first quarter 1997 was
$325,000 ($0.07 per share) compared to a net loss attributable to
common shareholders for first quarter 1996 of $655,000 ($0.34 per
share). Total revenues for first quarter 1997 rose by $662,000
or 48% over first quarter 1996. Earnings before income taxes,
interest expense, depreciation, depletion and amortization,
impairment, and extraordinary loss (EBITDA) were $520,000 ($0.12
per share) compared to $385,000 ($0.20 per share) for last year's
first quarter. Weighted average shares outstanding for first
quarter 1997 were 4,386,000 compared to 1,955,000 for first
quarter 1996. The 124% increase in shares outstanding was
primarily attributable to the Company's October 1996 public sale
of 2.3 million shares.
Mallon's consolidated financial statements include the
consolidation of its 56% owned Laguna Gold Company, which has an
unfavorable impact on reported results. The table on page 2
includes selected Mallon results, excluding Laguna's impact,
which better reflect the Company's oil and gas operations.
EBITDA for first quarter 1997, without Laguna, was $0.15 per
share.
Kevin Fitzgerald, President of Mallon Oil Company, said, "Over
the past two quarters, we have shifted much of our development
work to our natural gas properties, while we have worked to
enhance our acreage positions in new oil targets identified by
our Black River Well. We recently completed a transaction that
increased our working interest from 16% to more than 50% in our
Black River acreage, where we plan to spud a well next week.
With this stronger acreage position now in place, the Company
plans to accelerate its oil property work, while maintaining the
pace of its natural gas development."
During the first quarter, the Company drilled six wells, five of
which were completed, and recompleted five wells, all of which
are back on production. One well was abandoned due to mechanical
problems encountered while running casing. The Company plans to
re-drill this location. In addition, the Company spudded three
development wells in the first quarter, which are currently in
the process of being completed. Currently, the Company is
drilling two wells and is conducting work on three recompletions.
During the balance of 1997, the Company plans to drill
approximately 25 more wells and recomplete an additional 19.
George Mallon, Chairman of Mallon Resources, noted, "Our average
daily production for first quarter 1997 was 1,172 BOE, an 11%
increase over our 1996 average of 1060 BOE per day. More
significantly, by the end of the quarter our production was in
fact over 1,500 BOE per day. With the additions to technical and
operations staffs now settled in, I expect this positive trend to
continue at an accelerated pace. Our accelerated drilling
program, which began late last year, has already identified
important new development targets. While these new opportunities
have required some adjustments in our drilling plans, we are more
encouraged than ever about our prospects for long term growth."
(In thousands, except per unit data)
For the Three Months
Ended March 31,
1997 1996
Selected Consolidated Results
Revenues $2,031 $1,369
Costs and expenses 2,412 1,774
Net loss (230) (565)
Net loss attributable to common shareholders (325) (655)
Net loss per share attributable to common
shareholders $(0.07) $(0.34)
EBITDA* 520 385
EBITDA per share $0.12 $0.20
Weighted Average shares outstanding 4,386 1,955
Selected Results Without Laguna Gold Company
Revenues $1,997 $1,358
Costs and expenses 2,060 1,667
Net loss (63) (469)
Net loss attributable to common shareholders (158) (559)
Net loss per share attributable to common
shareholders $(0.04) $(0.29)
EBITDA* 662 469
EBITDA per share $0.15 $0.24
Weighted Average shares outstanding 4,386 1,955
Selected Operating Data
Net Production
Oil (Mbbls) 37 45
Gas (Mmcf) 411 322
MBOE 106 99
Average realized sales price
Oil (Mbbls) $22.59 $17.04
Gas (Mmcf) $2.76 $1.83
MBOE $18.60 $13.71
* 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 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 16, 1997 _________________________________
Roy K. Ross, Executive Vice
President
