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): November 21, 2000
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 9. Regulation FD Disclosure
Mallon Resources Corporation (the "Company") issued the following press
release, dated November 21, 2000, the text of which follows:
Denver, Colorado -- Mallon Resources Corporation (Nasdaq: "MLRC") Mallon
Resources Corporation (Nasdaq: "MLRC") today reported that it has resumed the
natural gas development drilling program at its East Blanco Field in the San
Juan Basin. To date, Mallon has drilled 26 of the 34 wells it planned to
drill in 2000, and it expects to complete all of its scheduled drilling by
year-end.
In addition to the drilling of new development wells, Mallon is focusing
its attention on recompleting existing wells in the northern portion of East
Blanco in order to commingle and produce the gas from multiple formations
within the wells. Most of Mallon's wells in this field contain three to five
pay zones, ranging in depth from 1,200 to 4,000 feet. Prior to recompletion,
the gas from each pay zone in a well is produced separately. Commingling
recompletions permit the gas from multiple zones to be produced up one string
of production tubing. Commingling also allows Mallon to (1) produce its gas
reserves more rapidly, (2) increase its proved producing reserves in the
field, (3) increase the present value of its proved reserves, and (4) reduce
operating costs. During the recompletion process the wells are shut-in, but
Mallon expects to see increased production and more efficient wells once the
work is complete. To date, Mallon has completed the commingling and
recompletion of seven wells, and it expects to complete 16 more by year-end.
Outlook
Based on its operations to date and its expectations for the balance of
the year, Mallon currently forecasts that its total production during 2000
will be between 6.5 Bcfe and 7 Bcfe. Based on its expectations for its 2001
drilling program, which calls for the drilling of 53 new wells, Mallon expects
its total production during 2001 will be between 10 Bcfe and 13 Bcfe.
George Mallon, CEO, said, "Our operations are going forward on schedule.
But the most exciting news is that because of our $15.2 million equity
financing in late September, for the first time in over a year we are able to
dedicate some of our drilling dollars to exploration. We are in the process of
permitting five new wells designed to test the Lewis Shale that lies just
below our current productive zones at East Blanco. Three older East Blanco
wells penetrated the Lewis Shale, where they encountered gas shows. We hope to
drill the first of these exploration wells in December 2000."
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 affect Mallon's
operations. These and other risk factors that affect Mallon's business are
discussed in Mallon's Annual Report.
Conference Call
Mallon will host a conference call on Wednesday, November 29, 2000,
beginning at 12:00 p.m., E.S.T., to discuss the matters reported in this News
Release. To participate in the call, please dial 1-800-340-5809 for calls
within the United States, or 212-346-6424 for calls from outside the United
States. Calls should be made 10 minutes before the conference call is
scheduled to start. A replay of the call will also be available through 1:45
p.m., E.S.T., on December 1, 2000, by dialing 1-800-633-8284 for calls within
the United States, or 1-858-812-6440 for calls from outside the United States.
The access number for the replay will be 17023852.
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."
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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
November 27, 2000 By: __/s/ Roy K. Ross_____________________
Roy K. Ross, Executive Vice President
