<ARTICLE>                   5
<LEGEND>                    This schedule contains summary financial
                            information extracted from Hondo Oil & Gas
                            Company's Form 10-Q for the period identified
                            below.  This information is qualified in its
                            entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER>                1,000
       
                         
<PERIOD-TYPE>                        3-MOS
<FISCAL-YEAR-END>              SEP-30-1996
<PERIOD-END>                   DEC-31-1995
<CASH>                                 925
<SECURITIES>                             0
<RECEIVABLES>                          421
<ALLOWANCES>                             0
<INVENTORY>                              0
<CURRENT-ASSETS>                     1,536
<PP&E>                              17,680
<DEPRECIATION>                           0
<TOTAL-ASSETS>                      22,705
<CURRENT-LIABILITIES>                3,818
<BONDS>                             81,972
<PREFERRED-MANDATORY>                    0
<PREFERRED>                              0
<COMMON>                            13,565
<OTHER-SE>                         (88,024)
<TOTAL-LIABILITY-AND-EQUITY>        22,705
<SALES>                                  0
<TOTAL-REVENUES>                        24
<CGS>                                    0
<TOTAL-COSTS>                            5
<OTHER-EXPENSES>                         0
<LOSS-PROVISION>                         0
<INTEREST-EXPENSE>                   1,131
<INCOME-PRETAX>                     (3,681)
<INCOME-TAX>                             0
<INCOME-CONTINUING>                 (3,681)
<DISCONTINUED>                           0
<EXTRAORDINARY>                          0
<CHANGES>                                0
<NET-INCOME>                        (3,681)
<EPS-PRIMARY>                        (0.27)
<EPS-DILUTED>                        (0.27)