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): April 11, 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)
Item 5. Other Events
Mallon Resources Corporation (the "Company") issued the following press
release, dated April 11, 2000, the text of which follows:
Denver, Colorado -- Mallon Resources Corporation (Nasdaq: "MLRC") today
announced that it has received approval to commingle the gas produced from
different zones in Mallon's wells in East Blanco Field in the San Juan Basin
of New Mexico. Approval was granted by the Jicarilla Apache Tribe, which owns
the land covering 60,700 acres of Mallon 68,900 acre East Blanco Field.
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 the approval of Mallon's
commingling request, the gas from each pay zone in a well had to be produced
separately. As a result, most wells were dually completed, a process
requiring more complicated completion procedures that allows two zones to be
produced at a time. With commingling approved, Mallon plans to begin placing
additional zones in its wells on production, with the gas being commingled up
one string of production tubing. Commingling will allow Mallon to (1) achieve
higher initial rates of production from its wells, (2) produce its gas
reserves more rapidly, (3) increase its proved producing reserves in the
field, (4) increase the present value of its proved reserves, and (5) reduce
drilling, completion and operating costs.
Kevin M. Fitzgerald, Mallon's Chief Operating Officer, said, "We are
extremely pleased that our request to commingle the production from our wells
has been granted. We currently have 12 drilled wells awaiting completion in
which we will now commingle the production. With approximately 425 additional
drilling targets at East Blanco, commingling will improve our economics,
substantially, as we go forward."
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.
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".
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
April 18, 2000 By: __/s/ Roy K. Ross_____________________
Roy K. Ross, Executive Vice President
