<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-06-06</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0001015293</issuerCik>
        <issuerName>HOUSTON EXPLORATION CO</issuerName>
        <issuerTradingSymbol>THX</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001159159</rptOwnerCik>
            <rptOwnerName>JANA PARTNERS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>200 PARK AVENUE, SUITE 3300</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10166</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2007-06-06</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>U</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4130900</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Each of the shares reported herein was exchanged pursuant to a merger agreement, dated as of January 7, 2007, by and among
 Forest Oil Corporation, a New York corporation (&quot;Forest Oil&quot;), MJCO Corporation, a wholly owned subsidiary of Forest Oil,
 and the Issuer (the &quot;Merger Agreement&quot;). The Reporting Person elected to exchange its shares for the right to receive 0.84
 shares of Forest Oil common stock and $26.25 in cash, representing a $60.02 per share of consideration based on the average
 closing price of Forest Oil shares during the ten-day valuation period specified in the Merger Agreement. Due to stock
 over-subscription, the exact allocation of the stock merger consideration will not, however, be known until the final
 results of the election process are determined following the expiration of the guaranteed delivery period, which will expire
 at 5:00 p.m., New York City time, on June 8, 2007.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ JANA Partners LLC by Charles  Penner, General Counsel</signatureName>
        <signatureDate>2007-06-08</signatureDate>
    </ownerSignature>
</ownershipDocument>
