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):  March 16, 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 March 16, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today reported that in 1997 it achieved record levels of 
oil and gas reserves, production, revenues and cash flow.  
Average daily production for all of 1997 was 1,611 BOE, a 52% 
increase over 1996's average daily production of 1,060 BOE.  At 
the end of 1997, Mallon was producing approximately 3,000 BOE per 
day, up from the approximately 1,000 BOE per day it was producing 
at the start of the year.  Mallon's average daily production is 
currently approximately 3,800 BOE per day.  During 1997, Mallon 
drilled 26 wells and recompleted 22 wells, compared to a total of 
four drilled and recompleted wells during 1996.  Mallon's oil and 
gas reserves at December 31, 1997, were 9.7 million barrels of 
oil equivalent (mmboe), a 52% increase over the 6.4 mmboe 
reported at year-end 1996.  Natural gas accounted for 86% of year 
end reserves.  For 1998, Mallon has a $24.7 million capital 
budget, compared to $15.5 million of actual capital expenditures 
in 1997.  Mallon plans to drill and recomplete more than 60 wells 
during 1998.  At the date of this News Release, Mallon has 
drilled or recompleted 18 wells during first quarter 1998, and 
currently has two drill rigs in operation. 

     Mallon's financial results were again unfavorably impacted 
by its interest in Laguna Gold Company.  Mallon previously held 
approximately 56% of the common stock of Laguna, a junior gold 
mining company in the pre-production stage.  In fourth quarter 
1997, Mallon contributed shares of its Laguna common stock to 
induce a new management team to join Laguna, and Mallon now owns 
approximately 49% of Laguna's common stock.  Also in 1997, Mallon 
reduced the carrying value of its investment in Laguna to zero, 
due primarily to Laguna's impairment of its mining assets because 
of continued depressed gold prices.  As a result of this write-
down, after 1997, Laguna's results will no longer negatively 
impact Mallon's financial results.

     Including $3,634,000 of Laguna related losses, Mallon 
reported a net loss for 1997 of $3,704,000 on revenues of 
$8,651,000, compared to a net loss for 1996 of $1,837,000 on 
revenues of $6,366,000.  The net loss attributable to common 
shareholders for 1997 was $4,292,000 ($0.92 per share) compared 
to net income attributable to common shareholders for 1996 of 
$1,530,000 (loss of $0.88 per share - see Note B).  Total 
revenues for 1997 were up by $2,285,000 (36%) over 1996.  Mallon 
also reported a net loss for fourth quarter 1997 of $2,987,000 on 
revenues of $2,798,000, compared to a net loss for fourth quarter 
1996 of $519,000 on revenues of $1,837,000.  The net loss 
attributable to common shareholders for fourth quarter 1997 was 
$3,017,000 ($0.60 per share) compared to net income attributable 
to common shareholders for fourth quarter 1996 of $3,128,000 
(loss of $0.16 per share - see Note B).  Operating cash flow for 
1997 was $2,802,000 ($0.60 per share) compared to $460,000 ($0.18 
per share) for 1996.


SELECTED FINANCIAL AND OPERATING DATA
(In thousands, except per unit data)


<TABLE>
<CAPTION>
                                            For the Three            For the
                                            Months Ended            Year Ended
                                         ___December 31,__          December 31,___
                                         1997         1996       1997          1996
<C>                                      <S>          <S>        <S>           <S>
Selected Results
   Revenues                              $ 2,798      $1,837     $ 8,651       $ 6,366
   Costs and expenses                      3,017       2,529       9,111         8,309
   Net loss                               (2,987)(A)    (519)     (3,704)(A)    (1,837)
   Net income (loss) attributable to
      common shareholders                 (3,017)(A)   3,128 (B)  (4,292)(A)     1,530 (B)
   Net loss per share attributable to 
      common shareholders                $ (0.60)(A)  $(0.16)(B) $ (0.92)(A)   $ (0.88)(B)
   EBITDA (C)                             (1,433)(A)     311          56 (A)     1,520
   EBITDA per share                      $ (0.29)(A)  $ 0.08     $  0.01 (A)   $  0.61   
   Cash flow (D)                           1,070          45       2,802           460
   Cash flow per share                   $  0.21      $ 0.01     $  0.60       $  0.18
   Weighted average shares outstanding     4,995       3,945       4,682         2,512

Other Operating Data
   Net Production:
     Oil (Mbbls)                              65          39         196           174
     Gas (Mmcf)                              797         352       2,350         1,286
     MBOE                                    198          98         588           388
   Average realized sales price
     Oil ($/Bbl)                          $17.60      $20.82      $19.31        $18.05
     Gas ($/Mcf)                           $2.05       $2.68       $2.04         $2.11
     BOE ($/BOE)                          $14.02      $17.92      $14.60        $15.09
</TABLE>

(A)  At December 31, 1997, Mallon reduced the carrying value of 
its investment in Laguna Gold Company to zero, due primarily to 
Laguna's write-down of its mining assets because of continued 
depressed gold prices.  After 1997, Laguna's financial results 
will no longer negatively impact Mallon's financial results.  The 
effect of all Laguna-related transactions on Mallon's earnings 
and EBITDA for 1997 is as follows:

<TABLE>
<CAPTION>
                            For the Three
                            Months Ended       For the Year Ended
                          December 31, 1997    December 31, 1997
                          Earnings   EBITDA    Earnings   EBITDA
<C>                        <S>       <S>       <S>       <S>
Total Laguna-related loss  $(3,158)  $(2,808)  $(3,634)  $(3,284)
Total Laguna-related loss
   per common share        $ (0.63)  $ (0.56)  $ (0.78)  $ (0.70)
</TABLE>

(B)  In fourth quarter 1996, Mallon recognized a gain on the 
redemption of its Series A Convertible Preferred Stock (the 
"Series A Stock") resulting in additional net income attributable 
to common shareholders of $3,743,000.  The Series A Stock, which 
was a common stock equivalent, was included in the 1996 per share 
calculation as if converted.  However, because the Series A Stock 
was reflected as if converted, the gain on redemption was 
deducted from net income attributable to common shareholders for 
purposes of calculating per share data, resulting in a net loss 
attributable to common shareholders for fourth quarter 1996 of 
$615,000, or $0.16 per share, and a net loss attributable to 
common shareholders for the year ended December 31, 1996 of 
$2,213,000, or $0.88 per share.

(C)  EBITDA is income before income taxes, interest expense, 
depreciation, depletion and amortization, impairment, and 
extraordinary loss.

(D)  Cash flow from operating activities before working capital 
adjustments.

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


March 23, 1998         By: __/s/ Roy K. Ross____________________
                           Roy K. Ross, Executive Vice President
[{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 8660}]
{"company-data": {"conformed-name": "MALLON RESOURCES CORP", "cik": "0000837759", "assigned-sic": "1311", "irs-number": "841095959", "state-of-incorporation": "CO", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-13124", "film-number": "98570761"}, "business-address": {"street1": "999 18TH ST STE 1700", "city": "DENVER", "state": "CO", "zip": "80202", "phone": "3032932333"}, "mail-address": {"street1": "999 18TH STREET", "street2": "STE 1700", "city": "DENVER", "state": "CO", "zip": "80202"}}
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):  March 16, 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 March 16, 1998, the text of which follows:

     Denver, Colorado -- Mallon Resources Corporation (Nasdaq:  
"MLRC") today reported that in 1997 it achieved record levels of 
oil and gas reserves, production, revenues and cash flow.  
Average daily production for all of 1997 was 1,611 BOE, a 52% 
increase over 1996's average daily production of 1,060 BOE.  At 
the end of 1997, Mallon was producing approximately 3,000 BOE per 
day, up from the approximately 1,000 BOE per day it was producing 
at the start of the year.  Mallon's average daily production is 
currently approximately 3,800 BOE per day.  During 1997, Mallon 
drilled 26 wells and recompleted 22 wells, compared to a total of 
four drilled and recompleted wells during 1996.  Mallon's oil and 
gas reserves at December 31, 1997, were 9.7 million barrels of 
oil equivalent (mmboe), a 52% increase over the 6.4 mmboe 
reported at year-end 1996.  Natural gas accounted for 86% of year 
end reserves.  For 1998, Mallon has a $24.7 million capital 
budget, compared to $15.5 million of actual capital expenditures 
in 1997.  Mallon plans to drill and recomplete more than 60 wells 
during 1998.  At the date of this News Release, Mallon has 
drilled or recompleted 18 wells during first quarter 1998, and 
currently has two drill rigs in operation. 

     Mallon's financial results were again unfavorably impacted 
by its interest in Laguna Gold Company.  Mallon previously held 
approximately 56% of the common stock of Laguna, a junior gold 
mining company in the pre-production stage.  In fourth quarter 
1997, Mallon contributed shares of its Laguna common stock to 
induce a new management team to join Laguna, and Mallon now owns 
approximately 49% of Laguna's common stock.  Also in 1997, Mallon 
reduced the carrying value of its investment in Laguna to zero, 
due primarily to Laguna's impairment of its mining assets because 
of continued depressed gold prices.  As a result of this write-
down, after 1997, Laguna's results will no longer negatively 
impact Mallon's financial results.

     Including $3,634,000 of Laguna related losses, Mallon 
reported a net loss for 1997 of $3,704,000 on revenues of 
$8,651,000, compared to a net loss for 1996 of $1,837,000 on 
revenues of $6,366,000.  The net loss attributable to common 
shareholders for 1997 was $4,292,000 ($0.92 per share) compared 
to net income attributable to common shareholders for 1996 of 
$1,530,000 (loss of $0.88 per share - see Note B).  Total 
revenues for 1997 were up by $2,285,000 (36%) over 1996.  Mallon 
also reported a net loss for fourth quarter 1997 of $2,987,000 on 
revenues of $2,798,000, compared to a net loss for fourth quarter 
1996 of $519,000 on revenues of $1,837,000.  The net loss 
attributable to common shareholders for fourth quarter 1997 was 
$3,017,000 ($0.60 per share) compared to net income attributable 
to common shareholders for fourth quarter 1996 of $3,128,000 
(loss of $0.16 per share - see Note B).  Operating cash flow for 
1997 was $2,802,000 ($0.60 per share) compared to $460,000 ($0.18 
per share) for 1996.

SELECTED FINANCIAL AND OPERATING DATA
(In thousands, except per unit data)
For the Three            For the
                                            Months Ended            Year Ended
                                         ___December 31,__          December 31,___
                                         1997         1996       1997          1996
Selected Results
   Revenues                              $ 2,798      $1,837     $ 8,651       $ 6,366
   Costs and expenses                      3,017       2,529       9,111         8,309
   Net loss                               (2,987)(A)    (519)     (3,704)(A)    (1,837)
   Net income (loss) attributable to
      common shareholders                 (3,017)(A)   3,128 (B)  (4,292)(A)     1,530 (B)
   Net loss per share attributable to 
      common shareholders                $ (0.60)(A)  $(0.16)(B) $ (0.92)(A)   $ (0.88)(B)
   EBITDA (C)                             (1,433)(A)     311          56 (A)     1,520
   EBITDA per share                      $ (0.29)(A)  $ 0.08     $  0.01 (A)   $  0.61   
   Cash flow (D)                           1,070          45       2,802           460
   Cash flow per share                   $  0.21      $ 0.01     $  0.60       $  0.18
   Weighted average shares outstanding     4,995       3,945       4,682         2,512

Other Operating Data
   Net Production:
     Oil (Mbbls)                              65          39         196           174
     Gas (Mmcf)                              797         352       2,350         1,286
     MBOE                                    198          98         588           388
   Average realized sales price
     Oil ($/Bbl)                          $17.60      $20.82      $19.31        $18.05
     Gas ($/Mcf)                           $2.05       $2.68       $2.04         $2.11
     BOE ($/BOE)                          $14.02      $17.92      $14.60        $15.09
(A)  At December 31, 1997, Mallon reduced the carrying value of 
its investment in Laguna Gold Company to zero, due primarily to 
Laguna's write-down of its mining assets because of continued 
depressed gold prices.  After 1997, Laguna's financial results 
will no longer negatively impact Mallon's financial results.  The 
effect of all Laguna-related transactions on Mallon's earnings 
and EBITDA for 1997 is as follows:
For the Three
                            Months Ended       For the Year Ended
                          December 31, 1997    December 31, 1997
                          Earnings   EBITDA    Earnings   EBITDA
Total Laguna-related loss  $(3,158)  $(2,808)  $(3,634)  $(3,284)
Total Laguna-related loss
   per common share        $ (0.63)  $ (0.56)  $ (0.78)  $ (0.70)
(B)  In fourth quarter 1996, Mallon recognized a gain on the 
redemption of its Series A Convertible Preferred Stock (the 
"Series A Stock") resulting in additional net income attributable 
to common shareholders of $3,743,000.  The Series A Stock, which 
was a common stock equivalent, was included in the 1996 per share 
calculation as if converted.  However, because the Series A Stock 
was reflected as if converted, the gain on redemption was 
deducted from net income attributable to common shareholders for 
purposes of calculating per share data, resulting in a net loss 
attributable to common shareholders for fourth quarter 1996 of 
$615,000, or $0.16 per share, and a net loss attributable to 
common shareholders for the year ended December 31, 1996 of 
$2,213,000, or $0.88 per share.

(C)  EBITDA is income before income taxes, interest expense, 
depreciation, depletion and amortization, impairment, and 
extraordinary loss.

(D)  Cash flow from operating activities before working capital 
adjustments.

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

March 23, 1998         By: __/s/ Roy K. Ross____________________
                           Roy K. Ross, Executive Vice President