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): December 11, 1998
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
On December 11, 1998, the Board of Directors of Mallon
Resources Corporation (the "Company") and the Compensation
Committee of the Board reduced the exercise price of substantially
all outstanding options and warrants to purchase shares of the
Company's common stock to $6.875, per share, the closing price for
the stock on December 11, as reported by Nasdaq. The re-pricings
were implemented because depressed oil and gas prices and general
turmoil in the financial markets have combined to drive down the
market price for the Company's common stock, despite the Company's
continued operating success. The Board believes the re-pricings
will provide renewed incentives to the holders of the effected
options and warrants to work toward the Company's success.
The re-pricings covered (a) certain options, the previous
exercise price of which was $7.50 per share; (b) certain options,
the previous exercise price of which was $8.375 per share; and (c)
certain warrants, the previous exercise price of which was $7.80
per share. The following chart shows the number of re-priced
options and warrants held by the Company's executive officers and
directors, and by all holders, collectively:
<TABLE>
<CAPTION>
$7.50 $8.375 $7.80
Name Options Options Warrants
- ----------------------------------------------------------------
<S> <C> <C< <C>
George O. Mallon, Jr. 68,548 142,000 6,666
Kevin M. Fitzgerald 48,745 127,500 6,666
Roy K. Ross 35,036 78,000 6,666
Roger R. Mitchell 9,000 12,000 0
Frank Douglass 9,000 10,000 6,670
Francis J. Reinhardt, Jr. 9,000 8,000 6,666
Peter H. Blum 9,000 0 84,666
Total, all holders 230,629 478,850 160,000
</TABLE>
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
December 18, 1998 ___/s/ Roy K. Ross___________________
Roy K. Ross, Executive Vice President
