Mexco Energy Corporation Announces Profitable Second Quarter And Additional Development Of Properties

MIDLAND, Texas, Nov. 13, 2013 /PRNewswire/ -- Mexco Energy Corporation (NYSE MKT: MXC) announced net income of $194,051 for the quarter ending September 30, 2013 compared to $763 for the quarter ending September 30, 2012. 

Operating revenues in the second quarter of fiscal 2014 were $1,121,446, a 51% increase from $743,601 for the same quarter of fiscal 2013.      

The average sales price for the quarter ending September 30, 2013 was $7.84 per Mcfe compared to $5.50 per Mcfe for the quarter ending September 30, 2012, an increase of 43%.  Oil production increased 38% and gas production decreased 4% during the second quarter of fiscal 2014 as compared to the second quarter of fiscal 2013.     

For the six months ended September 30, 2013, the Company reported net income of $210,182, a 437% increase from a net loss of $62,454 for the six months ended September 30, 2012.  Operating revenues increased 55% to $2,117,971 for the six months ended September 30, 2013 from $1,370,722 for the same period of fiscal 2013. 

The average sales price for the six months ended September 30, 2013 was $7.54 per Mcfe compared to $5.37 per Mcfe for the six months ended September 30, 2012, an increase of 40%.  Oil production increased 36% and gas production increased 1% for the six months ended September 30, 2013 as compared to the same period of fiscal 2013. 

In August 2013, a joint venture in which the Company is a working interest partner entered into an agreement for the assignment of a three year term leasehold interest in acreage in Reagan County, Texas.  In September 2013, the Company received payment of $116,299 for its share of the leasehold acreage.  The agreement is also to develop, with ninety day continuous development requirement, the Wolfcamp formation using horizontal drilling and multi-stage fracture stimulation.  Mexco's working interest in this development is approximately 1.15% (0.87% net revenue interest).

The Company is participating as a working interest owner in a joint venture, multiple well project to development the Atoka/Bend through Spraberry formations on a 640 acre property in Reagan County, Texas.  Using 160 acre spacing, these four deep vertical wells will hold the rights to potentially develop the Wolfcamp formation with horizontal drilling in the future.  Mexco's working interest in this project is .3146% (.2386% net revenue interest).       

Overall, Mexco has various interests in 6 horizontal wells and 278 vertical wells in Reagan County, Texas.  Mexco's net revenue interests in these wells range from .013% to 1.558% on which there is further potential for horizontal development.       

The Company participated in the drilling of seven horizontal wells in the Penn Detrital formation of the F A Hogg Field of Winkler County, Texas.  Five of these wells are now producing with one well currently undergoing completion procedures and one well being drilled.  The last well completed, on a 24-hour test on August 27, 2013, produced 220 barrels of oil, 180 barrels of water and 198,000 cubic feet of natural gas.  The seven units, six operated by OGX Operating, LLC and one operated by Petro-Hunt LLC, contain approximately 2,600 acres.  Mexco's working interests in these wells range from .2919% to .4167% (.2275% to .3125% net revenue interest). 

The Company also announced the participation in a ninth well in development of the Grayburg and San Andres formations of the Fuhrman-Mascho Field of Andrews County, Texas.  This well, on a 24-hour test on May 13, 2013, produced 45 barrels of oil, 100 barrels of water and 3 mcf of natural gas.  The unit, operated by Cone & Petree Oil & Gas Exploration, Inc., contains 160 gross acres.  The nine wells are all currently producing - four producing oil from the San Andres formation and five producing oil from the Grayburg and San Andres formations.  A tenth well is scheduled to begin drilling on December 2, 2013 leaving six potential drill sites on this 10-acre-spaced 160 acres.  Mexco's working interest in this project is approximately 16.2% (11.66% net revenue interest). 

Mexco Energy Corporation, a Colorado corporation, is an independent oil and gas company located in Midland, Texas engaged in the acquisition, exploration and development of oil and gas properties.  For more information on Mexco Energy Corporation, go to www.mexcoenergy.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2013.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.


Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS














September 30,


March 31,






2013


2013






(Unaudited)



ASSETS







Current assets






Cash and cash equivalents

$        222,630


$      166,406



Accounts receivable:







Oil and gas sales

703,103


538,971




Trade

16,240


16,370



Prepaid costs and expenses

73,009


19,281





Total current assets

1,014,982


741,028










Property and equipment, at cost






Oil and gas properties, using the full cost method

34,189,576


34,309,328



Other


93,257


92,326



Accumulated depreciation, depletion and amortization

(17,917,213)


(17,323,692)





Property and equipment, net

16,365,620


17,077,962










Other noncurrent assets

53,437


116,454





Total assets

$   17,434,039


$ 17,935,444









LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities






Accounts payable and accrued expenses

$        326,873


$      431,848



Derivative instruments

50,300


-





Total current liabilities

377,173


431,848








Long-term debt

2,225,000


2,950,000


Asset retirement obligations

795,203


763,412


Derivative instruments – long term

6,316


-


Deferred income tax liabilities

800,942


853,199





Total liabilities

4,204,634


4,998,459










Commitments and contingencies













Stockholders' equity






Preferred stock - $1.00 par value;







10,000,000 shares authorized; none outstanding

-


-



Common stock - $0.50 par value; 40,000,000 shares authorized;







2,102,866 shares issued and 2,036,866 shares outstanding 







as of September 30, 2013 and March 31, 2013, respectively 

1,051,433


1,051,433



Additional paid-in capital

6,843,329


6,761,091



Retained earnings

5,675,635


5,465,453



Treasury stock, at cost (66,000 shares) 

(340,992)


(340,992)


Total stockholders' equity

13,229,405


12,936,985





Total liabilities and stockholders' equity

$   17,434,039


$ 17,935,444

 

 

 


Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)







Three Months Ended


Six Months Ended






September 30


September 30






2013


2012


2013


2012

Operating revenue:









Oil and gas

$ 1,108,102


$  734,313


$2,092,371


$1,358,183


Other

13,344


9,288


25,600


12,539



Total operating revenues

1,121,446


743,601


2,117,971


1,370,722













Operating expenses:









Production

312,954


254,513


621,590


470,363


Accretion of asset retirement obligation

11,020


9,604


21,937


19,142


Depreciation, depletion, and amortization

298,489


259,780


593,522


491,316


General and administrative

286,615


236,708


598,085


528,977



Total operating expenses

909,078


760,605


1,835,134


1,509,798













Operating profit (loss)

212,368


(17,004)


282,837


(139,076)













Other income (expenses):









Interest income

105


-


107


130


Interest expense

(18,202)


(10,767)


(38,332)


(21,626)


Loss on derivative instruments

(59,295)


-


(86,687)


-



Net other expense

(77,392)


(10,767)


(124,912)


(21,496)













Earnings (loss) before provision for income taxes

134,976


(27,771)


157,925


(160,572)













Income tax benefit:









Current

-


-


-


-


Deferred

(59,075)


(28,534)


(52,257)


(98,118)






(59,075)


(28,534)


(52,257)


(98,118)













Net income (loss)

$   194,051


$         763


$   210,182


$  (62,454)

























Earnings (loss) per common share:









Basic

$         0.10


$        0.00


$         0.10


$      (0.03)


Diluted

$         0.10


$        0.00


$         0.10


$      (0.03)













Weighted average common shares outstanding:









Basic

2,036,866


2,035,949


2,036,866


2,035,949


Diluted

2,039,108


2,038,240


2,038,800


2,035,949

 

SOURCE Mexco Energy Corporation



RELATED LINKS
http://www.mexcoenergy.com

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.