<ARTICLE>                    5
<LEGEND>                     This schedule contains summary financial information
                             extracted from Hondo Oil & Gas Company's Form 10-K 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>                    SEP-30-1997
<PERIOD-TYPE>                          YEAR
<CASH>                                1,019
<SECURITIES>                              0
<RECEIVABLES>                           296
<ALLOWANCES>                             44
<INVENTORY>                               0
<CURRENT-ASSETS>                      1,316
<PP&E>                               40,612
<DEPRECIATION>                            0
<TOTAL-ASSETS>                       44,930
<CURRENT-LIABILITIES>                 7,150
<BONDS>                             102,903
<PREFERRED-MANDATORY>                     0
<PREFERRED>                               0
<COMMON>                             13,788
<OTHER-SE>                         (106,961)
<TOTAL-LIABILITY-AND-EQUITY>         44,930
<SALES>                                   4
<TOTAL-REVENUES>                         29
<CGS>                                     0
<TOTAL-COSTS>                           575
<OTHER-EXPENSES>                          0
<LOSS-PROVISION>                          0
<INTEREST-EXPENSE>                    6,222
<INCOME-PRETAX>                     (10,790)
<INCOME-TAX>                             (2)
<INCOME-CONTINUING>                 (10,788)
<DISCONTINUED>                       (1,600)
<EXTRAORDINARY>                           0
<CHANGES>                                 0
<NET-INCOME>                        (12,388)
<EPS-PRIMARY>                         (0.90)
<EPS-DILUTED>                         (0.90)