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):January 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 a press
release, dated January 15, 1997, the text of which was as
follows:
Mallon Resources Corporation (Nasdaq: "MLRC"), today announced
that it has enhanced its acreage position in the East Blanco Area
of the San Juan Basin of northwest New Mexico by purchasing a 20%
working interest in a 20,000 acre block in which it held a 59%
working interest prior to the purchase. As part of the
acquisition, Mallon became operator of the entire acreage block.
The acquisition includes interests in 28 gas wells and 16 proved
undeveloped drilling locations, and contains approximately 3 BCF
of proved natural gas reserves. Mallon now has interests in 37
sections in this area.
George Mallon, Chairman and President, said, "This acquisition of
additional interests in our Burns Ranch Gas Project accomplishes
two key objectives for us. First and foremost, it allows us to
become the operator and control the development of one of our key
properties. Secondly, it significantly enhances our acreage
position in an area in which we plan to be very active over the
next several years. The Company's strategy continues to focus on
development operations in our two primary areas of interest. We
are already actively drilling in the Delaware Basin of southeast
New Mexico, and this purchase puts us in a position to expand the
San Juan Basin portion of our development plans."
Kevin Fitzgerald, President of Mallon Oil Company, said, "Many of
the East Blanco wells, which produce from the Pictured Cliffs
Formation at approximately 4,000 feet, have considerable
potential in the Ojo Alamo and Fruitland Coal formations at
approximately 3,000 and 3,800 feet, respectively. We plan to
immediately recomplete several wells in these two formations to
test their reserve and production characteristics. Since we have
assigned few reserves to the Ojo Alamo and Fruitland Coal, a
successful recompletion program could add considerably to our
reserve base."
Mallon's oil and gas operations, located primarily in the western
United States, are conducted by its wholly-owned subsidiary,
Mallon Oil Company. Mallon also owns approximately 14 million
shares of the common stock of Laguna Gold Company, a company
engaged in the exploration for and development of precious metals
in Costa Rica. Laguna common shares are traded on The Toronto
Stock Exchange under the symbol "LGC." Mallon is headquartered
in Denver, Colorado. 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
January 17, 1997 ______/s/ Roy K. Ross____________
Roy K. Ross, Executive Vice President
