<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-30-1998
<PERIOD-END>                    DEC-31-1997
<PERIOD-TYPE>                         3-MOS
<CASH>                                   62
<SECURITIES>                              0
<RECEIVABLES>                           439
<ALLOWANCES>                              0
<INVENTORY>                               0
<CURRENT-ASSETS>                        691
<PP&E>                               44,114
<DEPRECIATION>                            0
<TOTAL-ASSETS>                       48,313
<CURRENT-LIABILITIES>                 7,234
<BONDS>                             109,130
<PREFERRED-MANDATORY>                     0
<PREFERRED>                               0
<COMMON>                             13,788
<OTHER-SE>                         (110,174)
<TOTAL-LIABILITY-AND-EQUITY>         48,313
<SALES>                                 143
<TOTAL-REVENUES>                        147
<CGS>                                     0
<TOTAL-COSTS>                           316
<OTHER-EXPENSES>                          0
<LOSS-PROVISION>                          0
<INTEREST-EXPENSE>                    1,979
<INCOME-PRETAX>                      (3,213)
<INCOME-TAX>                              0
<INCOME-CONTINUING>                  (3,213)
<DISCONTINUED>                            0
<EXTRAORDINARY>                           0
<CHANGES>                                 0
<NET-INCOME>                         (3,213)
<EPS-PRIMARY>                         (0.23)
<EPS-DILUTED>                         (0.23)