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): June 10, 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)
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Item 5. Other Events
Mallon Resources Corporation (the "Company") issued the following
press release, dated March 9, 1999, the text of which follows:
Denver, Colorado -- Mallon Resources Corporation (Nasdaq:
"MLRC") today announced that its second quarter 1999 natural
gas production will be lower than earlier projected owing to an
unexpectedly long pipeline maintenance program conducted by the
principal pipeline company in the San Juan Basin. The regularly
scheduled maintenance program, which was expected to take six
days, lasted 15 days and was completed at the end of May. During
this period, Mallon's San Juan Basin production was shut in.
George O. Mallon, Chairman and President of Mallon
Resources, said, "Pipeline operations are beyond the Company's
control and unexpected disruptions are an unavoidable part of our
business." Mr. Mallon continued, "To increase our flexibility
and create a low cost transportation alternative, we have
designed our own pipeline to directly connect our production to a
major transfer point. Such a connection will give us access to
additional pipeline networks, and will enhance the economics of
our gas field development project by reducing gathering fees paid
to third parties. We are currently considering whether to build
the pipeline alone or in conjunction with a third party."
As previously reported, production has also been affected by
a curtailed 1999 drilling and recompletion program, which
reflects Mallon's decision to revise its long term plans to
include increased activity on its new La Jara Canyon acreage,
where the Company recently delineated significant natural gas
reserve potential.
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
June 14, 1999 By: _/s/ Roy K. Ross_____________________
Roy K. Ross, Executive Vice President
