<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>                    JUN-30-1997
<PERIOD-TYPE>                         9-MOS
<CASH>                                  535
<SECURITIES>                              0
<RECEIVABLES>                           291
<ALLOWANCES>                              0
<INVENTORY>                               0
<CURRENT-ASSETS>                      1,395
<PP&E>                               36,153
<DEPRECIATION>                            0
<TOTAL-ASSETS>                       40,766
<CURRENT-LIABILITIES>                63,302
<BONDS>                              42,393
<PREFERRED-MANDATORY>                     0
<PREFERRED>                               0
<COMMON>                             13,781
<OTHER-SE>                         (102,774)
<TOTAL-LIABILITY-AND-EQUITY>         40,766
<SALES>                                   4
<TOTAL-REVENUES>                         23
<CGS>                                     0
<TOTAL-COSTS>                           383
<OTHER-EXPENSES>                          0
<LOSS-PROVISION>                          0
<INTEREST-EXPENSE>                    4,480
<INCOME-PRETAX>                      (8,163)
<INCOME-TAX>                             (2)
<INCOME-CONTINUING>                  (8,161)
<DISCONTINUED>                            0
<EXTRAORDINARY>                           0
<CHANGES>                                 0
<NET-INCOME>                         (8,161)
<EPS-PRIMARY>                         (0.59)
<EPS-DILUTED>                         (0.59)