<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated financial statements of XCL Ltd. and subsidiaries for the nine
month period ended September 30, 1996, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                              74
<SECURITIES>                                         0
<RECEIVABLES>                                      276
<ALLOWANCES>                                       101
<INVENTORY>                                          0
<CURRENT-ASSETS>                                   456
<PP&E>                                          36,306
<DEPRECIATION>                                   1,936
<TOTAL-ASSETS>                                  64,012
<CURRENT-LIABILITIES>                           46,495
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        669
<COMMON>                                         2,725
<OTHER-SE>                                      11,392
<TOTAL-LIABILITY-AND-EQUITY>                    64,012
<SALES>                                          1,031
<TOTAL-REVENUES>                                 1,031
<CGS>                                            5,664
<TOTAL-COSTS>                                    5,664
<OTHER-EXPENSES>                                    38
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,765
<INCOME-PRETAX>                                (6,436)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (6,436)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (6,436)
<EPS-PRIMARY>                                   (0.03)
<EPS-DILUTED>                                        0