___________________________
Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K/A
Amendment to Report
Filed Pursuant to Section 12, 13 or 15(d) of the Securities Exchange Act of 1934
Mallon Resources Corporation
(Exact name of Registrant as specified in its charter)
0-17267
(Commission file number)
Amendment No. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Periodic Report on Form 8K dated
September 9, 1999:
Item 5
(List of all such items, financial statements, exhibits or other portions
amended)
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 2, 1999
/s/ Roy K. Ross
Roy K. Ross, Executive Vice President
___________________________
<PAGE>
ITEM 5 OF REGISTRANT'S PERIODIC REPORT ON FORM 8K DATED SEPTEMBER 9, 1999 IS
HEREBY AMENDED TO READ IN ITS ENTIRETY AS AS FOLLOWS:
Mallon Resources Corporation (Nasdaq: "MLRC") today announced the
completion of a $60 million debt financing facility with Aquila Energy Capital
Corporation that will allow Mallon to begin an aggressive development drilling
program on its San Juan Basin natural gas properties in northwestern New
Mexico. The initial facility is $45.7 million.
At closing of the financing, Aquila advanced $28 million to retire Mallon's
previous revolving credit facility with Bank One, Texas, N.A. Additional funds
will be advanced as Mallon's development drilling program proceeds. The
interest rate on the four year loan is prime plus 2%. As part of the
transaction, Mallon issued to Aquila 420,000 shares of Mallon common stock.
Mallon's Chairman, George O. Mallon, Jr., stated, "With the completion of
this important financing, we will launch a development drilling program on our
East Blanco and La Jara Canyon acreage in the San Juan Basin of New Mexico.
This drilling program is the most exciting growth opportunity in our history,
with the potential to dramatically increase our reserves, asset value,
production and cash flow over the next several years."
"We are pleased to have the support of Aquila Energy," Mr. Mallon
continued. "Their financing provides us with the resources and flexibility to
develop our high potential natural gas properties on terms more favorable and
at a lower cost than was available elsewhere in the marketplace."
In a separate $5.5 million transaction, Mallon re-financed its East Blanco
Gas Processing Plant and associated compression facilities with Universal
Compression, Inc., of Houston. Mallon and Universal also entered into an
alliance agreement relating to the future expansion of the plant.
Aquila Energy Capital is a UtiliCorp United Company, an international
energy company with $6.8 billion in assets and more than 4.5 million customers
across the U.S. and in Canada, Great Britain, New Zealand and Australia.
Universal Compression, Inc. is a major international compression sales and
rental company, which owns and operates in excess of 650,000 horsepower of gas
compression equipment.
ABN AMRO Incorporated acted as Financial Advisor and Placement Agent to
Mallon in connection with the Aquila financing.
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 Mallon's operations. These
and other risk factors that affect Mallon's business are discussed in Mallon's
Annual Report.
Mallon Resources Corporation is a Denver 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."
