<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
       
                          
<FISCAL-YEAR-END>               SEP-30-1997
<PERIOD-END>                    DEC-31-1996
<PERIOD-TYPE>                         3-MOS
<CASH>                                1,111
<SECURITIES>                              0
<RECEIVABLES>                           321
<ALLOWANCES>                            210
<INVENTORY>                               0
<CURRENT-ASSETS>                      1,619
<PP&E>                               27,178
<DEPRECIATION>                            0
<TOTAL-ASSETS>                       31,549
<CURRENT-LIABILITIES>                 4,412
<BONDS>                              91,480
<PREFERRED-MANDATORY>                     0
<PREFERRED>                               0
<COMMON>                             13,781
<OTHER-SE>                          (97,046)
<TOTAL-LIABILITY-AND-EQUITY>         31,549
<SALES>                                   0
<TOTAL-REVENUES>                         15
<CGS>                                     0
<TOTAL-COSTS>                           (55)
<OTHER-EXPENSES>                          0
<LOSS-PROVISION>                          0
<INTEREST-EXPENSE>                    1,422
<INCOME-PRETAX>                      (2,435)
<INCOME-TAX>                             (2)
<INCOME-CONTINUING>                  (2,433)
<DISCONTINUED>                            0
<EXTRAORDINARY>                           0
<CHANGES>                                 0
<NET-INCOME>                         (2,433)
<EPS-PRIMARY>                         (0.18)
<EPS-DILUTED>                         (0.18)