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 earliest event reported): October 23, 1996

                    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)


                                -1-


Item 5.  Other Events

Mallon Resources Corporation (the "Company") issued a press 
release, dated October 23, 1996, the text of which was as 
follows:

Mallon Oil Company, a unit of Mallon Resources Corporation 
(Nasdaq: "MLRC"), reported that it has purchased and retired all 
of the previously outstanding shares of its Series A Convertible 
Preferred Stock.  The Company paid approximately $1.9 million for 
this purchase.  The funds used were proceeds from the Company's 
recent sale of 2 million shares of Common Stock for gross 
proceeds of $13 million.  The balance of the net proceeds of that 
offering will be spent to accelerate the development of the 
Company's New Mexico oil and gas properties.

George Mallon, President of the Company, said the purchase of the 
Series A shares accomplished three important objectives:  1) it 
extinguished a $6 million preference that had been ahead of the 
Company's common shares; 2) because the shares retired had been 
convertible into common, the purchase eliminated a substantial 
overhang over the market for the Company's common stock; and, 3) 
elimination of the series will clean-up and simplify the 
Company's balance sheet.

Mallon's oil and gas operations, located primarily in the western 
United States, are conducted by its wholly-owned subsidiary, 
Mallon Oil Company.  Mallon also owns approximately 14 million 
shares of the common stock of Laguna Gold Company, a company 
engaged in the exploration for and development of precious metals 
in Costa Rica.  Laguna common shares are traded on The Toronto 
Stock Exchange under the symbol "LGC."  Mallon is headquartered 
in Denver, Colorado.  Mallon's Common Stock is quoted on the 
Nasdaq National 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


October 24, 1996       ___/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 earliest event reported): October 23, 1996

                    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)

                                -1-

Item 5.  Other Events

Mallon Resources Corporation (the "Company") issued a press 
release, dated October 23, 1996, the text of which was as 
follows:

Mallon Oil Company, a unit of Mallon Resources Corporation 
(Nasdaq: "MLRC"), reported that it has purchased and retired all 
of the previously outstanding shares of its Series A Convertible 
Preferred Stock.  The Company paid approximately $1.9 million for 
this purchase.  The funds used were proceeds from the Company's 
recent sale of 2 million shares of Common Stock for gross 
proceeds of $13 million.  The balance of the net proceeds of that 
offering will be spent to accelerate the development of the 
Company's New Mexico oil and gas properties.

George Mallon, President of the Company, said the purchase of the 
Series A shares accomplished three important objectives:  1) it 
extinguished a $6 million preference that had been ahead of the 
Company's common shares; 2) because the shares retired had been 
convertible into common, the purchase eliminated a substantial 
overhang over the market for the Company's common stock; and, 3) 
elimination of the series will clean-up and simplify the 
Company's balance sheet.

Mallon's oil and gas operations, located primarily in the western 
United States, are conducted by its wholly-owned subsidiary, 
Mallon Oil Company.  Mallon also owns approximately 14 million 
shares of the common stock of Laguna Gold Company, a company 
engaged in the exploration for and development of precious metals 
in Costa Rica.  Laguna common shares are traded on The Toronto 
Stock Exchange under the symbol "LGC."  Mallon is headquartered 
in Denver, Colorado.  Mallon's Common Stock is quoted on the 
Nasdaq National 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

October 24, 1996       ___/s/ Roy K. Ross_____________________
                       Roy K. Ross, Executive Vice President