<ARTICLE>                     5
<LEGEND>
 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
EXPLORATION COMPANY AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 8/31/98
AND IS QUALIFED IN ITS ENTIRETY BY REFERENCE TO SUCH THE EXPLORATION COMPANY
 FORM 10-k FOR THE YEAR ENDED 8/31/98.
</LEGEND>
<CIK>                         0000313395
<NAME>                        THE EXPLORATION COMPANY
<MULTIPLIER>                                   1
<CURRENCY>                                     US DOLLAR
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                              AUG-31-1998
<PERIOD-START>                                 SEP-01-1997
<PERIOD-END>                                   AUG-31-1998
<EXCHANGE-RATE>                                1
<CASH>                                         2,329,236
<SECURITIES>                                   0
<RECEIVABLES>                                  861,666
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               3,208,640
<PP&E>                                         18,707,635
<DEPRECIATION>                                 6,101,207
<TOTAL-ASSETS>                                 16,264,632
<CURRENT-LIABILITIES>                          2,691,947
<BONDS>                                        2,977,544
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       156,135
<OTHER-SE>                                     10,439,006
<TOTAL-LIABILITY-AND-EQUITY>                   16,264,632
<SALES>                                        3,048,277
<TOTAL-REVENUES>                               3,048,277
<CGS>                                          9,843,890
<TOTAL-COSTS>                                  11,122,160
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             442,105
<INCOME-PRETAX>                                (8,417,218)
<INCOME-TAX>                                   0
<INCOME-CONTINUING>                            (8,417,218)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (8,417,218)
<EPS-PRIMARY>                                  (.55)
<EPS-DILUTED>                                  0