Infill, deeper objectives due tests at East Blanco

Mallon Resources Corp., Denver, selling its Delaware basin properties to focus entirely on its East Blanco Unit in the San Juan basin, said its second quarter 2001 production from East Blanco will not be as large as expected.Mallon's debt burden has kept it from pursuing all available projects at East Blanco, which contains "outstanding opportunities to increase reserves and production."East Blanco second quarter production should be 17 MMcfd of gas equivalent, less than expected, because some new wells produced at lower rates than projected and due to a 5-day pipeline maintenance shutdown.Unit wells have declined more steeply than expected given the calculated gas in place volumes, a...

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