Mexco Energy Corporation (NYSE American: MXC) today reported net
income of $1,103,834, or $0.52 per diluted share, for the six
months ended September 30, 2021, compared to a net loss of
$341,640, or $0.17 per diluted share, for the six months ended
September 30, 2020.
Operating revenues were $2,817,679 for the six
months ended September 30, 2021, a 180% increase from $1,006,498
for the September 30, 2020 six month period resulting from a 29%
increase in oil production and a 9% increase in natural gas
production as well as increases in the average sales price of oil
and natural gas to $66.85 per barrel (a 110% increase) and $3.70
per Mcf (a 201% increase), respectively, for the six months ended
September 30, 2021.
Net income was $708,828, or $0.33 per diluted
share, for the quarter ending September 30, 2021, the Company’s
second quarter of fiscal 2022, versus a net loss of $41,970, or
$0.02 per diluted share, for the quarter ending September 30, 2020
and versus $395,006 net income for the preceding quarter ending
June 30, 2021, a 79% increase.
Operating revenues in the second quarter of
fiscal 2022 increased 144% to $1,553,481 from $636,042 for the
second quarter of fiscal 2021. This increase resulted from a 24%
increase in oil production and a 4% increase in natural gas
production as well as the average sales price of oil and natural
gas for the quarter ending September 30, 2021 to $69.62 per barrel
(an 81% increase) and $4.41 per Mcf (a 213% increase),
respectively.
The Company currently plans to participate in
the drilling and completion of approximately 39 horizontal wells at
an estimated aggregate cost of approximately $1,000,000 for the
fiscal year ending March 31, 2022. During the first six months of
fiscal 2022, the Company participated with various percentage
interests in the drilling of nineteen of these wells in the
Delaware Basin located in the Permian Basin in Lea and Eddy
Counties, New Mexico and Reeves County, Texas with aggregate costs
of approximately $450,000.
The Company also expended approximately $165,000
during the first quarter of fiscal 2022 for the additional
completion costs of 12 drilled but uncompleted horizontal wells
located in Lea and Eddy Counties, New Mexico that the Company
participated in drilling during fiscal 2021. Two of these wells
were completed at the end of June 2021 and beginning of July with
initial average production rates of 1,406 barrels of oil, 3,214
barrels of water; and 2,146,000 cubic feet of gas per day, or 1,403
barrels of oil equivalent per day. Mexco’s working interest in
these wells is 1.2%.
During the six months ended September 30, 2021,
the Company paid in full the $1,180,000 balance on its bank line of
credit.
The President and Chief Financial Officer of the
Company stated, “We are pleased with record profits of
approximately $1.1 million, $335,000 cash on hand and no bank debt
as of November 1, 2021. The Oil & Gas Journal ranked Mexco as
the 74th largest U.S. based publicly owned oil and gas company in
its September 6, 2021 issue, up from 96th.”
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, 2021. 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 at Mexco
Energy Corporation, (432) 682-1119.
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