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): May 14, 1999
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)
^PAGE^
Item 5. Other Events
Mallon Resources Corporation (the "Company") issued the following
press release, dated May 14, 1999, the text of which follows:
Mallon Resources Corporation (Nasdaq: "MLRC") today
reported that its first quarter 1999 average daily production
rose 32% to 21.9 million cubic feet of natural gas equivalents
("Mmcfe"), compared to its first quarter 1998 daily average of
16.6 Mmcfe. During the first quarter of 1999, Mallon drilled
three exploratory wells, two of which were discoveries and one of
which is awaiting completion, and recompleted two wells, compared
to 14 wells drilled and 7 wells recompleted during first quarter
1998.
Mallon reported a net loss for first quarter 1999 of
$871,000 on revenues of $3,038,000, compared to net income for
first quarter 1998 of $44,000 on revenues of $3,125,000. The net
loss attributable to common shareholders for first quarter 1999
was $901,000 ($0.13 per diluted share) compared to net income
attributable to common shareholders for first quarter 1998 of
$14,000 ($0.00 per diluted share). Total revenues in the first
quarter of 1999 declined by $87,000 (3%) from first quarter 1998.
Operating cash flow in the first quarter of 1999 was $476,000,
compared to $1,318,000 in first quarter 1998. The decline in
cash flow was almost entirely due to lower oil and natural gas
prices.
George Mallon, Chairman, said, "The depressed oil and
natural gas prices that prevailed during the first quarter
significantly restricted our performance. The average price we
realized was just $1.53 per Mmcfe, fully a 25% decrease from the
$2.05 per Mmcfe we averaged in first quarter 1998. Fortunately,
the recent firming in oil and gas prices will have a beneficial
impact on our performance as we go forward."
"Our reduced drilling and recompletion activity during the
quarter reflected our focus on revising our drilling and
development plans to include increased activity on our new La
Jara Canyon acreage, where we recently delineated significant
reserve potential. We are now in the process of securing the
capital required to implement our revised program, which calls
for the drilling and recompletion of 49 wells during the balance
of 1999."
The preceding information contains forward-looking
statements, the realization of which cannot be assured. Actual
results may differ significantly from those forecast. The
Company and its operations are subject to numerous risks and
uncertainties. Among these are risks related to the oil and gas
business generally (including operating risks and hazards and the
regulations imposed thereon), risks and uncertainties related to
the volatility of the prices of oil and gas, uncertainties
related to the estimation of reserves of oil and gas and the
value of such reserves, uncertainties relating to geologic models
and evaluations, the effects of competition and extensive
environmental regulation, and other factors, many of which are
necessarily beyond the Company's control. These and other risk
factors that affect the Company's business are discussed in the
Company's 1998 Annual Report.
(Continued)
^PAGE^
<TABLE>
<CAPTION>
SELECTED FINANCIAL AND OPERATING DATA
(In thousands, except per unit data)
For the Three Months
Ended March 31,
1999 1998
(Unaudited)
<S> <C>
Selected Results
Revenues $3,038 $3,125
Costs and expenses 3,909 3,081
Net income (loss) (871) 44
Net income (loss) attributable to
common shareholders (901) 14
Basic net income (loss) per share
attributable to common shareholders (0.13) 0.00
Diluted net income (loss) per share
attributable to common shareholders (0.13) 0.00
EBITDA (A) 993 1,306
EBITDA per basic share 0.14 0.19
EBITDA per diluted share 0.14 0.18
Cash flow (B) 476 1,318
Cash flow per basic share 0.07 0.19
Cash flow per diluted share 0.07 0.19
Basic weighted average shares outstanding 7,022 6,996
Diluted weighted average shares outstanding 7,022 7,088
Other Operating Data
____________________
Net Production:
Oil (MBbls) 47 68
Gas (MMcf) 1,686 1,086
MMcfe 1,968 1,494
Average realized sales price
Oil ($/Bbl) $11.53 $14.26
Gas ($/Mcf) 1.47 1.93
Mcfe ($/Mcfe) 1.53 2.05
</TABLE>
(A) EBITDA is earnings before income taxes, interest expense,
depreciation, depletion and amortization, impairment, and
extraordinary loss.
(B) Cash flow from operating activities before working capital
adjustments.
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
May 21, 1999 By: __/s/ Roy K. Ross____________________
Roy K. Ross, Executive Vice President
