<ARTICLE>                     5
<LEGEND>
     This  schedule  contains  summary  financial   information  extracted  from
Chancellor Group, Inc. and Subsidiaries April 30, 1996 financial  statements and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK>                         0000894544
<NAME>                        CHANCELLOR GROUP INC/
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                              JUL-31-1996
<PERIOD-END>                                   APR-30-1996
<CASH>                                         23,517
<SECURITIES>                                   156,500
<RECEIVABLES>                                  2,549,579
<ALLOWANCES>                                   0
<INVENTORY>                                    0
<CURRENT-ASSETS>                               3,147,082
<PP&E>                                         26,240,547
<DEPRECIATION>                                 (756,153)
<TOTAL-ASSETS>                                 28,947,818
<CURRENT-LIABILITIES>                          1,157,104
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       2,100
<OTHER-SE>                                     21,319,511
<TOTAL-LIABILITY-AND-EQUITY>                   28,947,818
<SALES>                                        2,783,207
<TOTAL-REVENUES>                               2,783,207
<CGS>                                          0
<TOTAL-COSTS>                                  822,264
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             2,311
<INCOME-PRETAX>                                2,369,382
<INCOME-TAX>                                   234,750
<INCOME-CONTINUING>                            1,723,882
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   2,134,632
<EPS-PRIMARY>                                  1.13
<EPS-DILUTED>                                  1.13