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): September 28, 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 September 28, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today reported recent developments relating to its East 
Blanco Gas Project in northwest New Mexico's San Juan Basin. 

     -  Drilling on new East Blanco acreage scheduled for November.  
An environmental impact report has been approved covering the 
39,000 acre lease block the Company recently acquired from the 
Jicarilla Apache Tribe.  The Company expects permits for the 
drilling of the first wells on this block to be issued in October.  
The lease block is adjacent to the southeast to the Company's 
original East Blanco acreage block, and lies on geological trend 
with that block.  During fourth quarter 1998, the Company plans to 
drill five wells on the new block to test the Ojo Alamo Formation 
at approximately 3,000 feet and various up-hole formations.  Three 
of the planned wells are direct offsets to the Company's most 
prolific Ojo Alamo well.  If the Ojo Alamo or one or more of the 
shallower zones proves to be productive in the new acreage block, 
the Company will initiate an aggressive drilling program on the new 
acreage in 1999.

     -  San Jose Formation discovery.  In the northern portion of 
East Blanco, the Company has successfully tested 10 San Jose 
Formation gas wells at a depth of approximately 1,600 feet.  Six of 
these wells are currently on production at an average rate of 
approximately 600 thousand cubic feet per day.  It appears that 
most of the Company's East Blanco Ojo Alamo wells also have San 
Jose pay and that the San Jose sand continues on trend to the 
southeast under the Company's new acreage block.  With its success 
in the shallow San Jose Formation, the Company hopes to be able to 
book San Jose reserves prior to year-end.

     -  Ojo Alamo Formation determined to be non-productive in the 
northeast corner of the original East Blanco acreage block.  During 
1998, the Company has successfully drilled and completed 24 new 
wells in the Ojo Alamo.  The Company has determined that five of 
its other recently drilled wells in the northeast corner of East 
Blanco are tight and non-productive in the Ojo Alamo.  One of these 
wells has been successfully completed in the San Jose Formation, 
and all but one of the wells appears to be capable of San Jose 
production.  The tight Ojo Alamo sand encountered in the five wells 
has probably condemned as many as 15 of the Company's prospective 
Ojo Alamo locations in the immediate vicinity, although the San 
Jose remains a viable target in many of the locations.  The Company 
does not believe that its failure to extend Ojo Alamo production to 
the northeast negatively impacts its prospects to extend Ojo Alamo 
production to the south, particularly onto its new acreage block.

     -  Capital budget adjusted.  As a result of the foregoing 
developments, the Company has deferred its Ojo Alamo drilling 
operations while it awaits the issuance of permits for drilling to 
the south.  Until the permits are issued, the Company will 
recomplete San Jose Formation gas wells in the north, which should 
partially offset production originally anticipated from the Ojo 
Alamo in this area.  As a result of this redirection of activities, 
the Company has reduced its 1998 capital budget to $32.5 million, a 
decrease of $3.5 million from the $36 million capital budget it 
announced in June.  The revised budget is for 45 wells drilled and 
42 recompletions, as contrasted to the earlier planned 62 wells 
drilled and 26 recompletions.  Although the total number of wells 
planned to be drilled or recompleted has decreased by just one 
well, the split between new drilling and recompletions has shifted 
significantly.  The Company was able to reduce its capital 
expenditure budget because the planned San Jose recompletions are 
less costly than new Ojo Alamo drilling.

     Because the projected average daily production from a typical 
San Jose well is less than the projected average daily production 
from a typical Ojo Alamo well, the Company's redirection of its 
drilling focus is expected to result in the Company producing less 
gas in 1998 than previously anticipated.  Management currently 
expects 1998 production to total approximately 21 million 
equivalent cubic feet per day, as compared to the 25 million 
equivalent cubic feet per day earlier forecast.  Production for 
1999 will depend on the level of capital spending in 1999 and the 
level of success encountered by the Company's drilling on the 
southern acreage block.  However, management believes that 1999 
production should be double 1998's production.

     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, non-
budgeted cost increases, unforeseen delays in operations, and 
operations that prove less successful than anticipated are risks 
that can significantly affect 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


September 28, 1998       By: __/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): September 28, 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 September 28, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today reported recent developments relating to its East 
Blanco Gas Project in northwest New Mexico's San Juan Basin. 

     -  Drilling on new East Blanco acreage scheduled for November.  
An environmental impact report has been approved covering the 
39,000 acre lease block the Company recently acquired from the 
Jicarilla Apache Tribe.  The Company expects permits for the 
drilling of the first wells on this block to be issued in October.  
The lease block is adjacent to the southeast to the Company's 
original East Blanco acreage block, and lies on geological trend 
with that block.  During fourth quarter 1998, the Company plans to 
drill five wells on the new block to test the Ojo Alamo Formation 
at approximately 3,000 feet and various up-hole formations.  Three 
of the planned wells are direct offsets to the Company's most 
prolific Ojo Alamo well.  If the Ojo Alamo or one or more of the 
shallower zones proves to be productive in the new acreage block, 
the Company will initiate an aggressive drilling program on the new 
acreage in 1999.

     -  San Jose Formation discovery.  In the northern portion of 
East Blanco, the Company has successfully tested 10 San Jose 
Formation gas wells at a depth of approximately 1,600 feet.  Six of 
these wells are currently on production at an average rate of 
approximately 600 thousand cubic feet per day.  It appears that 
most of the Company's East Blanco Ojo Alamo wells also have San 
Jose pay and that the San Jose sand continues on trend to the 
southeast under the Company's new acreage block.  With its success 
in the shallow San Jose Formation, the Company hopes to be able to 
book San Jose reserves prior to year-end.

     -  Ojo Alamo Formation determined to be non-productive in the 
northeast corner of the original East Blanco acreage block.  During 
1998, the Company has successfully drilled and completed 24 new 
wells in the Ojo Alamo.  The Company has determined that five of 
its other recently drilled wells in the northeast corner of East 
Blanco are tight and non-productive in the Ojo Alamo.  One of these 
wells has been successfully completed in the San Jose Formation, 
and all but one of the wells appears to be capable of San Jose 
production.  The tight Ojo Alamo sand encountered in the five wells 
has probably condemned as many as 15 of the Company's prospective 
Ojo Alamo locations in the immediate vicinity, although the San 
Jose remains a viable target in many of the locations.  The Company 
does not believe that its failure to extend Ojo Alamo production to 
the northeast negatively impacts its prospects to extend Ojo Alamo 
production to the south, particularly onto its new acreage block.

     -  Capital budget adjusted.  As a result of the foregoing 
developments, the Company has deferred its Ojo Alamo drilling 
operations while it awaits the issuance of permits for drilling to 
the south.  Until the permits are issued, the Company will 
recomplete San Jose Formation gas wells in the north, which should 
partially offset production originally anticipated from the Ojo 
Alamo in this area.  As a result of this redirection of activities, 
the Company has reduced its 1998 capital budget to $32.5 million, a 
decrease of $3.5 million from the $36 million capital budget it 
announced in June.  The revised budget is for 45 wells drilled and 
42 recompletions, as contrasted to the earlier planned 62 wells 
drilled and 26 recompletions.  Although the total number of wells 
planned to be drilled or recompleted has decreased by just one 
well, the split between new drilling and recompletions has shifted 
significantly.  The Company was able to reduce its capital 
expenditure budget because the planned San Jose recompletions are 
less costly than new Ojo Alamo drilling.

     Because the projected average daily production from a typical 
San Jose well is less than the projected average daily production 
from a typical Ojo Alamo well, the Company's redirection of its 
drilling focus is expected to result in the Company producing less 
gas in 1998 than previously anticipated.  Management currently 
expects 1998 production to total approximately 21 million 
equivalent cubic feet per day, as compared to the 25 million 
equivalent cubic feet per day earlier forecast.  Production for 
1999 will depend on the level of capital spending in 1999 and the 
level of success encountered by the Company's drilling on the 
southern acreage block.  However, management believes that 1999 
production should be double 1998's production.

     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, non-
budgeted cost increases, unforeseen delays in operations, and 
operations that prove less successful than anticipated are risks 
that can significantly affect 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

September 28, 1998       By: __/s/ Roy K. Ross_____________________
                             Roy K. Ross, Executive Vice President