Mexco Energy Corporation Reports Financial Results for the Third Quarter
February 10 2021 - 3:47PM
Mexco Energy Corporation (NYSE American: MXC) today reported net
income of $80,497 for the quarter ending December 31, 2020, the
Company’s third quarter of fiscal 2021. This compares to net income
of $35,196 for the quarter ending December 31, 2019.
Operating revenues, in the third quarter of
fiscal 2021 were $699,894, compared to $769,778 for the second
quarter of fiscal 2020. This is the result of a 13% increase in oil
production, an 8% increase in gas production and a 29% increase in
gas prices partially offset by a 28% decrease in oil prices.
The average sales price for the quarter ending
December 31, 2020 was $2.08 per Mcf and $40.01 per barrel compared
to $1.61 per Mcf and $55.91 per barrel, respectively for the
quarter ending December 31, 2019.
For the nine months ended December 31, 2020, the
Company reported a net loss of $261,143 compared to a net loss of
$101,777 for the nine months ended December 31, 2019. Operating
revenues were $1,774,966 for the nine months ended December 31,
2020, a 15% decrease from $2,095,253 for the December 31, 2019 nine
month period resulting primarily from the COVID-19 pandemic.
The Company participated in the drilling of 20
horizontal wells for the fiscal year ending March 31, 2021. Eight
of these wells have been completed and are currently producing. The
remaining twelve wells are in various stages of drilling or
completion.
In addition to the 20 wells mentioned above, the
Company participated in the completion of 22 horizontal wells which
were drilled during fiscal 2020 located in Eddy and Lea Counties,
New Mexico. The Company has paid approximately $270,000, which is
the balance of the completion costs for the 22 wells. Of these
wells, 13 wells were completed during the first six months of
fiscal 2021. In December 2020, four more of these wells were
completed and initially produced at an average production rate of
1,171 barrels of oil; 4,004 barrels of water; and 2,517,000 cubic
feet of gas per day, or 1,591 barrels of oil equivalent per day.
Mexco’s working interest in these four wells is .36%. Another three
of these wells were also completed in December 2020 and the
remaining two wells were completed in January 2021.
Our working interests in the above mentioned 42
wells range from .03% to 1.2% with a total capital expenditure in
fiscal 2021 to date of approximately $1,295,000. We expect 34 out
of the 42 wells to be completed by the end of the fiscal year,
March 31, 2021.
The President and Chief Financial Officer of the
Company stated, “Based on our progress in completing the 22 wells
drilled but uncompleted in fiscal 2020 and eight of the 20 wells
drilled this fiscal year, we expect to continue to increase volumes
of oil and gas produced. Also, we are pleased with the increases in
oil and gas prices in the current quarter.”
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 primarily in the Permian
Basin. 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 inherent 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, 2020. Mexco Energy Corporation
disclaims any intention or obligation to revise any forward-looking
statements.
For additional information, please contact: Nicholas C. Taylor,
Chairman and Chief Executive Officer or Tammy L. McComic, President
and Chief Financial Officer, both of Mexco Energy Corporation,
(432) 682-1119.
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