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 earliest event reported): February 27, 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 February 27, 1997, the text of which was as follows:
Mallon Resources Corporation (Nasdaq: "MLRC"), today announced
that its proved oil and gas reserves at year-end 1996 were 6.4 million
barrels of oil equivalent (mmboe), a 25% increase over the 5.1 mmboe
reported at year-end 1995. The present value of its year-end 1996
reserves (discounted to present value using a discount factor of 10%
and assuming flat year-end prices) increased 138% to $50.0 million
from the $21.0 million at year-end 1995. Mallon's proved reserves are
27% oil and 73% natural gas.
George O. Mallon, Chairman of the Company, noted, "This
significant increase in reserves was driven by the Company's
successful development drilling operations on our core southeast New
Mexico properties. Just 20% of the increase was attributable to
higher oil and gas prices. We are particularly pleased because the
results were achieved despite the fact that our drilling program was
capital constrained until late in the year."
"We expect even better results in 1997, as the Company begins to
realize the benefits of its accelerated drilling programs in the
Delaware and San Juan Basins," Mr. Mallon continued. "With the
completion of our equity financing in October 1996, we have sharply
increased our drilling and workover activity in New Mexico. This
ramp-up in activity will continue to improve both production and
financial results during the year. As a result, Mallon expects to
report another significant increase in our 1997 year-end reserves."
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
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'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
March 3, 1997 __/s/ Roy K. Ross________________
Roy K. Ross, Executive Vice President
