SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT



                       Pursuant to Section 13 or 15(d) of
                     The Securities and Exchange Act of 1934

         Date of Report (Date of earliest event reported) June 30, 1998



                          GARNET RESOURCES CORPORATION
             (Exact name of registrant as specified in its charter)



 Delaware                     0-16621                             74-2421851

(State or Other              (Commission                       (IRS Employer

Jurisdiction of               File Number)                  Identification No.)

 Incorporation)




                     RR 2 Box 4400, Nacogdoches, Texas 75961
                     ---------------------------------------
               (Address of principal executive offices) (Zip Code)



        Registrant's telephone number, including area code (409) 559-9959






         Item 5.  Other Matters

         The registrant and Aviva Petroleum Inc.  ("Aviva")  signed an Agreement
and Plan Of Merger dated June 24, 1998 (the "Merger Agreement"). Under the terms
of the Merger Agreement,  registrant's  stockholders will receive  approximately
1.1 million shares of common stock of Aviva.  The Merger Agreement also provides
for the refinancing of registrant's  outstanding debt guaranteed by the Overseas
Private Investment Corporation,  an agency of the United States Government,  and
the issuance of  approximately  12.9 million shares of Aviva common stock to the
holders of registrant's $15 million dollars of 9 1/2% subordinated debentures in
exchange for those debentures.

         Registrant's  stockholders  will  receive one (1) share of Aviva common
stock for each ten (10)  shares of  registrant's  common  stock  that they hold.
Registrant's  stockholders  holding less than 1,000  registrant's  shares or who
would  receive  fractional  shares of Aviva common stock after the exchange will
receive cash in the amount of $0.02 for each share of registrant's  common stock
held.  Registrant's  stockholders entitled to receive Aviva common stock will be
issued one Aviva depositary share for each five (5) shares of Aviva common stock
that they receive as a result of the merger.  The Aviva depositary  shares trade
on the American Stock Exchange under the symbol "AVV".

         Completion  of the merger  transaction  is planned to take place during
the third quarter of this year and is subject to various contingencies including
the  execution  of a  Definitive  Credit  Agreement  and  the  approval  of  the
transactions  contemplated by the Merger  Agreement by the stockholders of Aviva
and  registrant.  A Joint  Proxy  Statement  was filed with the  Securities  and
Exchange  Commission  on  Form  S-4 on June  29,  1998  and  will be sent to the
stockholders  of both  companies  when it has  been  declared  effective  by the
Securities and Exchange Commission.

         Aviva is engaged in the  exploration for and development and production
of oil and gas in Columbia and  offshore in the United  States.  Aviva's  common
stock is also quoted on the London Stock Exchange under the symbol "AVP".

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                                    Garnet Resources Corporation
                                                    (Registrant)



                                                   BY:
         (Date)                                                      (Name)
                                                                     (Title)