<ARTICLE> 5 <CIK> 0000788965 <NAME> HALLADOR PETROLEUM COMPANY <MULTIPLIER> 1000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 3,440 <SECURITIES> 978 <RECEIVABLES> 649 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 6,299 <PP&E> 18,797 <DEPRECIATION> 13,405 <TOTAL-ASSETS> 11,416 <CURRENT-LIABILITIES> 3,668 <BONDS> 3,177 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 71 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 11,416 <SALES> 2,799 <TOTAL-REVENUES> 3,436 <CGS> 0 <TOTAL-COSTS> 3,697 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 326 <INCOME-PRETAX> (183) <INCOME-TAX> 0 <INCOME-CONTINUING> (183) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (183) <EPS-PRIMARY> (.03) <EPS-DILUTED> (.03)