<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
conoslidated financial statements of XCL Ltd. and Subsidiaries for the six 
months ended June 30, 1998, and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          16,608
<SECURITIES>                                         0
<RECEIVABLES>                                      188
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                17,610
<PP&E>                                          69,234
<DEPRECIATION>                                     941
<TOTAL-ASSETS>                                 117,204
<CURRENT-LIABILITIES>                           11,638
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,230
<COMMON>                                           230
<OTHER-SE>                                      36,339
<TOTAL-LIABILITY-AND-EQUITY>                   117,204
<SALES>                                              0
<TOTAL-REVENUES>                                     0
<CGS>                                                0
<TOTAL-COSTS>                                    2,987
<OTHER-EXPENSES>                                 (719)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,852
<INCOME-PRETAX>                                (4,120)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (4,120)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (4,120)
<EPS-PRIMARY>                                    (.40)
<EPS-DILUTED>                                    (.40)