__________________________________
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 16, 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 16, 1999 is
hereby amended to read in its entirety as as follows:
Mallon Resources Corporation (Nasdaq: "MLRC") today announced that it has
begun a multi-year natural gas development program in the San Juan Basin of
northwestern New Mexico. Mallon has identified the potential for recoverable
natural gas on its East Blanco and La Jara Canyon acreage blocks in the Ojo
Alamo, San Jose, Nacimiento and Pictured Cliffs formations.
Speaking at the Dain Rauscher Wessels 1999 Energy Conference, George Mallon,
Chairman of the Company, said that the development program could result in the
drilling of up to 250 new wells in the San Juan Basin. Mallon expects to drill
or recomplete 30 wells during the balance of 1999, and at least 59 wells during
2000. Last week, Mallon reported the closing of $65.5 million of debt
financings to fund the commencement of this program.
Mr. Mallon stated, "The completion of our new financing marks a turning point
for Mallon Resources. We now have the financial, operating and management
resources to launch a large scale, yet relatively low risk, natural gas
development program that has the potential to dramatically increase our
reserves, asset value, production and cash flow over the next several years. We
are embarking on one of the most exciting periods in the Company's history."
Also at the conference, Kevin Fitzgerald, Chief Operating Officer, said,
"We've already moved rigs onto our East Blanco and La Jara Canyon acreage. Our
program is designed to quickly add production from the Ojo Alamo and San Jose
formations. Because of our previous work, only modest additional expenditures
will be required to increase our gas plant capacity to handle more than triple
our current average daily production."
Mr. Fitzgerald also disclosed that, during 2000, Mallon plans to assess the
commercial potential of its extensive coalbed methane resources in the San Juan
Basin. A number of wells on Mallon acreage demonstrate that the Fruitland Coal
formation is present over a large portion of the Company's 68,000 acres. Mr.
Fitzgerald said, "Recent developments in coalbed completion techniques used by
other companies in fields adjacent to our East Blanco acreage have served to
make our Fruitland Coal an attractive target. If the results of our study
program are favorable, coalbed methane could become another major development
project for the Company."
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 and engineering
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."
