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 15, 1998

                        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 June 15, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today announced that it has increased its 1998 capital 
spending budget to $36 million, an increase of $11.3 million over 
the $24.7 million capital spending budget it announced in March.  
Mallon said it took the action in order to capitalize on the 
success of its East Blanco Gas Project in northwest New Mexico's 
San Juan Basin.

     To accommodate increases in productive capacity at East 
Blanco, Mallon will substantially increase spending on project 
plant and facilities.  The Company's gas processing plant, which 
currently has the capacity to process 14.5 million cubic feet per 
day (Mmcfd) of natural gas and was budgeted to be increased to 24 
Mmcfd by the end of 1998 under the earlier program, will now be 
increased to 50 Mmcfd.  In addition, the Company will expand 
gathering systems and pipeline connections to accommodate increased 
volumes.  The increase in capital spending on infrastructure at 
East Blanco is designed to maximize long-term growth in reserves, 
production and cash flow.  The new capital budget also includes 
funds to drill five test wells by year-end on the 39,360 acres of 
additional East Blanco land that the Company recently acquired from 
the Jicarilla Apache Tribe.

     The Ojo Alamo Formation at approximately 3,200 feet will 
continue to be the primary focus of the Company's 1998 drilling 
program at East Blanco.  However, Mallon recently recompleted its 
first natural gas well in the Nacimiento Formation at East Blanco 
at a depth of approximately 2,600 feet.  The well, which tested 
over 700 mcf per day, identifies the Nacimiento as a potentially 
important new productive horizon.  This discovery, combined with 
the Ojo Alamo's significant potential and the recent substantial 
increase in the Company's East Blanco acreage position, convinced 
the Company that additional resources should be dedicated to 
development of the East Blanco project.  The favorable results from 
the Ojo Alamo drilling and the funds expended to test the 
Nacimiento and other potentially productive formations are expected 
to result in higher yearend reserves than in the Company's earlier 
projections. 

     As part of its shift in capital spending, Mallon will also 
defer substantially all of its scheduled 1998 oil drilling in 
southeast New Mexico's Delaware Basin.  This decision reflects both 
the capital needs of the East Blanco Gas Project and currently 
depressed oil prices.  As a result of this deferral in its oil 
activities, the Company's overall production for 1998 is likely to 
be somewhat lower than earlier forecast.

     George Mallon, Chairman and President of Mallon Resources, 
said, "We are very excited about our East Blanco Gas Project.  
Increasing our capital spending there is well warranted, even in 
light of prevailing low commodity prices.  The more we work the 
East Blanco area, the more we believe that the San Juan Basin will 
provide Mallon with years of reserve and production growth.  This 
is the key factor behind our decision to shift capital from 
drilling oil wells to gas project drilling and facilities 
expansion.  This shift will slow our oil production growth for 
1998, but, by deferring our oil drilling until a better pricing 
environment exists, we expect to enjoy better rates of return when 
our locations are finally drilled.  In the interim, the projected 
returns on our increased gas project spending are very attractive."

     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 effect 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 the Nasdaq National Market tier of the Nasdaq 
Stock Market 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 16, 1998              __/s/ Roy K. Ross________________
                             Roy K. Ross, Executive Vice President
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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 15, 1998

                        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 June 15, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today announced that it has increased its 1998 capital 
spending budget to $36 million, an increase of $11.3 million over 
the $24.7 million capital spending budget it announced in March.  
Mallon said it took the action in order to capitalize on the 
success of its East Blanco Gas Project in northwest New Mexico's 
San Juan Basin.

     To accommodate increases in productive capacity at East 
Blanco, Mallon will substantially increase spending on project 
plant and facilities.  The Company's gas processing plant, which 
currently has the capacity to process 14.5 million cubic feet per 
day (Mmcfd) of natural gas and was budgeted to be increased to 24 
Mmcfd by the end of 1998 under the earlier program, will now be 
increased to 50 Mmcfd.  In addition, the Company will expand 
gathering systems and pipeline connections to accommodate increased 
volumes.  The increase in capital spending on infrastructure at 
East Blanco is designed to maximize long-term growth in reserves, 
production and cash flow.  The new capital budget also includes 
funds to drill five test wells by year-end on the 39,360 acres of 
additional East Blanco land that the Company recently acquired from 
the Jicarilla Apache Tribe.

     The Ojo Alamo Formation at approximately 3,200 feet will 
continue to be the primary focus of the Company's 1998 drilling 
program at East Blanco.  However, Mallon recently recompleted its 
first natural gas well in the Nacimiento Formation at East Blanco 
at a depth of approximately 2,600 feet.  The well, which tested 
over 700 mcf per day, identifies the Nacimiento as a potentially 
important new productive horizon.  This discovery, combined with 
the Ojo Alamo's significant potential and the recent substantial 
increase in the Company's East Blanco acreage position, convinced 
the Company that additional resources should be dedicated to 
development of the East Blanco project.  The favorable results from 
the Ojo Alamo drilling and the funds expended to test the 
Nacimiento and other potentially productive formations are expected 
to result in higher yearend reserves than in the Company's earlier 
projections. 

     As part of its shift in capital spending, Mallon will also 
defer substantially all of its scheduled 1998 oil drilling in 
southeast New Mexico's Delaware Basin.  This decision reflects both 
the capital needs of the East Blanco Gas Project and currently 
depressed oil prices.  As a result of this deferral in its oil 
activities, the Company's overall production for 1998 is likely to 
be somewhat lower than earlier forecast.

     George Mallon, Chairman and President of Mallon Resources, 
said, "We are very excited about our East Blanco Gas Project.  
Increasing our capital spending there is well warranted, even in 
light of prevailing low commodity prices.  The more we work the 
East Blanco area, the more we believe that the San Juan Basin will 
provide Mallon with years of reserve and production growth.  This 
is the key factor behind our decision to shift capital from 
drilling oil wells to gas project drilling and facilities 
expansion.  This shift will slow our oil production growth for 
1998, but, by deferring our oil drilling until a better pricing 
environment exists, we expect to enjoy better rates of return when 
our locations are finally drilled.  In the interim, the projected 
returns on our increased gas project spending are very attractive."

     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 effect 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 the Nasdaq National Market tier of the Nasdaq 
Stock Market 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 16, 1998              __/s/ Roy K. Ross________________
                             Roy K. Ross, Executive Vice President