UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3  INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

1. Name and Address of Reporting Person
   SCHILLER, JR., JOHN D.
   4523 ELMSTONE COURT
   
   
   KINGWOOD, TX  77345
2. Date of Event Requiring Statement (Month/Day/Year)
   9/16/98
3. I.R.S. Identification Number of Reporting Person, if an entity (Voluntary)
   ###-##-####
4. Issuer Name and Ticker or Trading Symbol
   SEAGULL ENERGY CORPORATION (SGO)
5. Relationship of Reporting Person to Issuer (Check all applicable)
   [ ] Director                   [ ] 10% Owner 
   [X] Officer (give title below) [ ] Other (specify below)
   SENIOR VICE PRESIDENT-
   OPERATIONS 
6. If Amendment, Date of Original (Month/Day/Year)
7. Individual or Joint/Group Filing (Check Applicable Line)
   [X] Form filed by One Reporting Person
   [ ] Form filed by More than One Reporting Person



Table I   Non-Derivative Securities Beneficially Owned
- -----------------------------------------------------------------------------------------------------
1)Title of Security                                          2)Amount of         3)  4)Nature of     
                                                             Securities          D   Indirect        
                                                             Beneficially        or  Beneficial      
                                                             Owned               I   Ownership       
- -----------------------------------------------------------------------------------------------------
                                                                                         


Table II   Derivative Securitites Beneficially Owned
- ------------------------------------------------------------------------------------------------------------------------------------
1)Title of Derivative Security  2)Date Exercisable  3)Title and Amount of                   4)Conver-  5)Ownership 6)Nature of      
                                and Expiration Date Securities Underlying                   sion or    Form of     Indirect         
                                (Month/Day/Year)    Derivative Security                     exercise   Derivative  Beneficial       
                                                                                            price of   Security    Ownership        
                                Date      Expira-                                Amount or  Deri-      Direct(D)                    
                                Exer-     tion                                   Number of  vative     or                           
                                cisable   Date      Title                        Shares     Security   Indirect(I)                  
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
Non-Qualified Stock Option      (1)       09/16/08  Common Stock                 40,000     $11.6875   D           Direct           
(right to buy)                                                                                                                      


Explanation of Responses:

(1)
The option, which represents a right-to-buy, vests in four equal annual installments beginning one year from date of grant.         



SIGNATURE OF REPORTING PERSON
/S/ By: Sylvia Sanchez
    For: John D. Schiller, Jr.
DATE 09/24/98