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): August 14, 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
Mallon Resources Corporation (the "Company") issued the following
press releases; the text of each follows:
Denver, Colorado - August 14, 1998 -- Mallon Resources
Corporation (Nasdaq: "MLRC") today announced that its principal
operating subsidiary, Mallon Oil Company, was recently awarded New
Mexico's 1998 Environmental Merit Award for Innovative Achievements
in Protection of the Environment. Mallon was selected for the
award by the Oil Conservation Division of the New Mexico Energy,
Minerals and Natural Resources Department. The award was presented
at the Annual Meeting of the Independent Petroleum Association of
New Mexico by Jennifer Salisbury, Secretary of the New Mexico
Energy, Minerals and Natural Resources Department, and by Lori
Wrotenbery, Director of the Oil Conservation Division.
In making the presentation, Secretary Salisbury said, "This
award speaks to the level of commitment that Mallon has to
protecting New Mexico's resources for all its citizens. They
exemplify the positive impact that industry can have in protecting
our environment."
George Mallon, Chairman of the Company, said, "Much of our
work in New Mexico is conducted on Jicarilla Apache Tribal lands.
So we take particular pleasure in the fact that we were nominated
for this prestigious award by the Jicarilla Apache Tribe. As a
corporation, we are committed to conducting all of our oil and gas
operations in an environmentally responsible manner."
Mallon Resources Corporation is a Denver, Colorado, based oil
and gas exploration and production company operating primarily in
the San Juan and Delaware Basins of New Mexico. Mallon's Common
Stock is quoted on Nasdaq under the symbol "MLRC."
AND
___
Denver, Colorado - August 17, 1998 -- Mallon Resources
Corporation (Nasdaq: "MLRC") today announced that it has
established production in what could be a significant new natural
gas field at its East Blanco Gas Project in northwest New Mexico's
San Juan Basin. The Company reported that it has production tested
eight gas wells in the San Jose Formation at approximately 1,500
feet. The wells have tested from 200 mcf per day to 600 mcf per
day after 30,000 pound hydraulic foam fracture treatments. The San
Jose sands vary in thickness from 100 to 300 feet and, to date, the
wells have tested only 50 feet of the sand in the lower part of the
interval. The eight test wells are widely spread across 23,000
acres in the northern section of Mallon's East Blanco Gas Project.
Because gas-bearing San Jose sands have been encountered in
scattered tests over much of the acreage, the Company is optimistic
that substantial portions of the block will ultimately be
productive from the San Jose. The Company plans to continue to
test and develop the San Jose during the balance of 1998.
George Mallon, Chairman and President of the Company, said,
"We continue to uncover new production and reserves at East Blanco,
where we assumed operating control in January 1997. Until
recently, our production there was primarily from the well known
Pictured Cliffs Formation. Then, just 12 months ago, we commenced
production of gas from the Ojo Alamo Formation, which had never
before been commercially produced in the Basin. We now have 42
producers in that zone and we plan to drill at least 20 more Ojo
Alamo wells by year-end. This recent discovery of San Jose
production above the Ojo Alamo is a completely new gas field.
While we are not yet certain of the productive limits of the San
Jose or the ultimate reserve potential it holds, we believe San
Jose production will have a significant impact on overall project
economics when it is combined with our production from the Pictured
Cliffs and the Ojo Alamo."
The foregoing information contains forward-looking statements
and forecasts, the realization of which cannot be assured. Actual
results may differ significantly from those forecast. Inaccurate
geologic interpretations, the volatility of commodity prices,
unbudgeted cost increases, unforeseen delays in operations, and
operations that prove less successful than anticipated are risks
that can significantly effect the Company's operations. These and
other risk factors that affect the Company's business are discussed
in the Company's Annual Report.
Mallon Resources Corporation is a Denver, Colorado, based oil
and gas exploration and production company operating primarily in
the San Juan and Delaware Basins of New Mexico. Mallon's Common
Stock is quoted on Nasdaq 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
August 27, 1998 By: __/s/ Roy K. Ross________________
Roy K. Ross, Executive Vice President
