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 19, 2001



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)
<PAGE>


Item 5.  Other Events

Mallon Resources Corporation (the "Company") issued the following press
release, dated June 19, 2001, the text of which follows:

    Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  "MLRC") today
announced that it intends to sell its oil and gas properties located in the
Delaware Basin of southeast New Mexico. These properties had proved reserves
of 41.8 billion cubic feet equivalent of natural gas at year-end 2000, and
they accounted for approximately 26% of Mallon's 2000 production. Proceeds
from the planned sale will be used to reduce corporate debt and fund further
development and exploration of Mallon's East Blanco Natural Gas Field in New
Mexico's San Juan Basin.

    George O. Mallon, Jr., Chairman and President, said, "We recognize that
our current debt burden has a negative impact on the market for our common
stock, which we believe does not fully reflect the value in our assets. With
this in mind, our Board of Directors has evaluated numerous options for
maximizing shareholder value, including conversations regarding a possible
sale of the Company. We believe that by selling our Delaware Basin properties
and focusing all of our resources on our East Blanco Field, where we have
outstanding opportunities to increase reserves and production, we will be able
to turn the Company's potential into enhanced shareholder value more rapidly.
We believe that these actions will also improve our options for potential
future corporate transactions."

    The Company has retained Waterous & Co. to assist in the Delaware Basin
properties sales process. A data room to review detailed property information
is expected to open in Houston on June 25, 2001. Additional information
regarding the properties will soon be available at www.waterous.com, or can be
obtained by contacting Andy Taurins (713-410-6241) or Larry Strong (713-870-
7612). Waterous & Co. is a leading financial services firm specializing in oil
and gas divestitures, mergers and acquisitions, and merchant banking
activities.

    "Over the last several years, we have focused our activities primarily on
East Blanco Field," Mr. Mallon continued. "However, financial constraints have
kept us from pursuing all of the projects that we believe this property
justifies. By selling our Delaware Basin properties and reducing our debt
burden, we hope to have capital available to devote to East Blanco. Our
development drilling there will enable us to move probable and possible
reserves into the proved category, which should result in a greater market
valuation of our assets. In addition, we plan to joint venture the exploration
of our Fruitland Coal Formation acreage at East Blanco, where an estimated 500
Bcf of gas is in place. Because successful production of that gas will require
the development of an economic completion method, we believe that it is
prudent to enlist the support of an experienced industry partner to assist in
this effort and accelerate the development of this possible asset."

    Mallon also announced that an independent engineering study indicates that
down-spacing from 160 acre to 80 acre production units may be required to
properly drain East Blanco. This study was commissioned due to East Blanco's
steeper than expected decline curves given its calculated gas in place
volumes. "East Blanco's primary reservoirs have no good historic comparables
on which to base decline curve projections," noted Don Erickson, Senior Vice
President of Mallon Oil Company. "Currently, we are processing applications
for five permits to test pressure depletion based on 80 acre spacing. If down-
spacing is indicated, this will make an excellent low-risk, high-return,
project for the Company because all required infrastructure is already in
place. These five test boreholes are also going to be drilled slightly deeper
to test the Lewis Shale Formation, which lies at depths from 4,200 feet to
5,600 feet. The Lewis Shale has recently been found to be productive to the
west of our acreage. This incremental exploration drilling will be achieved
for minor additional cost."

    Mallon also reported that, because some of its new wells have been less
prolific than projected and due to a five day maintenance shut-down of El
Paso's pipeline, it believes its production for second quarter 2001 will be
approximately 17.0 Mmcfe per day. This level of production is below current
market expectations.

    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."

    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 Tuesday, June 26, 2001, beginning at
Noon, E.S.T., to discuss the matters reported in this News Release. To
participate in the call, please dial 1-800-670-3544 for calls within the
United States, or 1-212-676-5243 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 noon, E.S.T., on
June 28, 2001, by dialing 1-800-633-8284 for calls within the United States,
or 1-858-587-5842 for calls from outside the United States. The access number
for the replay will be 19189271.

                                    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 19, 2001                       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):  June 19, 2001

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 19, 2001, the text of which follows:

    Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  "MLRC") today
announced that it intends to sell its oil and gas properties located in the
Delaware Basin of southeast New Mexico. These properties had proved reserves
of 41.8 billion cubic feet equivalent of natural gas at year-end 2000, and
they accounted for approximately 26% of Mallon's 2000 production. Proceeds
from the planned sale will be used to reduce corporate debt and fund further
development and exploration of Mallon's East Blanco Natural Gas Field in New
Mexico's San Juan Basin.

    George O. Mallon, Jr., Chairman and President, said, "We recognize that
our current debt burden has a negative impact on the market for our common
stock, which we believe does not fully reflect the value in our assets. With
this in mind, our Board of Directors has evaluated numerous options for
maximizing shareholder value, including conversations regarding a possible
sale of the Company. We believe that by selling our Delaware Basin properties
and focusing all of our resources on our East Blanco Field, where we have
outstanding opportunities to increase reserves and production, we will be able
to turn the Company's potential into enhanced shareholder value more rapidly.
We believe that these actions will also improve our options for potential
future corporate transactions."

    The Company has retained Waterous & Co. to assist in the Delaware Basin
properties sales process. A data room to review detailed property information
is expected to open in Houston on June 25, 2001. Additional information
regarding the properties will soon be available at www.waterous.com, or can be
obtained by contacting Andy Taurins (713-410-6241) or Larry Strong (713-870-
7612). Waterous & Co. is a leading financial services firm specializing in oil
and gas divestitures, mergers and acquisitions, and merchant banking
activities.

    "Over the last several years, we have focused our activities primarily on
East Blanco Field," Mr. Mallon continued. "However, financial constraints have
kept us from pursuing all of the projects that we believe this property
justifies. By selling our Delaware Basin properties and reducing our debt
burden, we hope to have capital available to devote to East Blanco. Our
development drilling there will enable us to move probable and possible
reserves into the proved category, which should result in a greater market
valuation of our assets. In addition, we plan to joint venture the exploration
of our Fruitland Coal Formation acreage at East Blanco, where an estimated 500
Bcf of gas is in place. Because successful production of that gas will require
the development of an economic completion method, we believe that it is
prudent to enlist the support of an experienced industry partner to assist in
this effort and accelerate the development of this possible asset."

    Mallon also announced that an independent engineering study indicates that
down-spacing from 160 acre to 80 acre production units may be required to
properly drain East Blanco. This study was commissioned due to East Blanco's
steeper than expected decline curves given its calculated gas in place
volumes. "East Blanco's primary reservoirs have no good historic comparables
on which to base decline curve projections," noted Don Erickson, Senior Vice
President of Mallon Oil Company. "Currently, we are processing applications
for five permits to test pressure depletion based on 80 acre spacing. If down-
spacing is indicated, this will make an excellent low-risk, high-return,
project for the Company because all required infrastructure is already in
place. These five test boreholes are also going to be drilled slightly deeper
to test the Lewis Shale Formation, which lies at depths from 4,200 feet to
5,600 feet. The Lewis Shale has recently been found to be productive to the
west of our acreage. This incremental exploration drilling will be achieved
for minor additional cost."

    Mallon also reported that, because some of its new wells have been less
prolific than projected and due to a five day maintenance shut-down of El
Paso's pipeline, it believes its production for second quarter 2001 will be
approximately 17.0 Mmcfe per day. This level of production is below current
market expectations.

    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."

    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 Tuesday, June 26, 2001, beginning at
Noon, E.S.T., to discuss the matters reported in this News Release. To
participate in the call, please dial 1-800-670-3544 for calls within the
United States, or 1-212-676-5243 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 noon, E.S.T., on
June 28, 2001, by dialing 1-800-633-8284 for calls within the United States,
or 1-858-587-5842 for calls from outside the United States. The access number
for the replay will be 19189271.

                                    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 19, 2001                       By: _/s/ Roy K. Ross_____________________
                                        Roy K. Ross, Executive Vice President

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