<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