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 4, 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 release; dated December 4, 1998, the text of which follows:
Denver, Colorado - December 4, 1998 -- Mallon Resources
Corporation (Nasdaq: "MLRC") today that the borrowing base
available to the Company under its bank line of credit has been
increased 41% to $30 million. The increase was approved following a
routine mid-year engineering review of the line by Bank One, Texas,
N.A. George Mallon, the Company's Chairman and President, said,
"We are pleased that during a period of difficult industry
conditions and weak oil and gas prices, Bank One recognized the size
and quality of our strong and growing asset base."
The Company also reported that on October 1, 1998, its Minerals
Development Agreement with the Jicarilla Apache Tribe received its
final required governmental approval. The Agreement covers
approximately 40,000 acres of Tribal Land contiguous to the
Company's San Juan Basin East Blanco Gas Project in northwest New
Mexico. The Company began drilling operations on this acreage
several days ago and the current well is at 3,000 feet and drilling.
As many as 6 wells will be drilled on this acreage before year-end;
initially targeting the Ojo Alamo and San Jose Formations.
"Our prospect inventory has continued to grow," said Mr.
Mallon. "This new Jicarilla Tribal acreage triples our holdings in
the area. With the added flexibility provided by our increased
borrowing base, this inventory should allow us to maintain an
aggressive development program. In turn, we are optimistic that we
will continue to register reserve and production growth through this
period."
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
December 7, 1998 By: __/s/ Roy K. Ross___________________
Roy K. Ross, Executive Vice President
